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The Math I Hated Now Fuels My Income: A Common Sense Guide to Math Based Options


When I first heard “math-based options,” I’ll admit, I was a bit worried. In school math was not my strength or my favorite subject. It’s ironic that math-based options have become the main source of my income after ditching the corporate grind.


Here’s the thing – the “math” in math-based trading? It’s really just common sense. We aren't trying to decipher a complex equation looking for x or y, there are NO imaginary numbers here!


We are depending on our brokers, the Black-Scholes model, as well as the principles of probability and statistics to execute trades that are logical and make sense. Most people are either book smart or street smart, and that’s why math-based trading works for everyone.

You see, I've been a math based options trader for more than a decade I just didn't know the term.


Take selling puts, for example. I’ve been doing that to potentially own companies I like at a lower price. I look at the charts, I use support and moving averages to pick my strike and I made the trade. I never specifically thought about the “probability of profit” because it just made sense this was a good trade. It’s common sense that I want someone to pay me for the chance to buy a good company cheaper.


Buying quality companies (the best of breed) when everyone is panicking has always made common sense to me without the actual need to check the VIX for fear levels. But knowing to check VIX is valuable.


Using math to pick companies to sell options on? It just simplifies the whole process. Tracking a company’s implied volatility and understanding if the options we are trading are historically cheap or expensive gives us a valuable indicator on what strategies we should use. Buying options when they are cheap is smart, and using math here really has a real-life application and reward.


So, if you’re not a math whiz, don’t sweat the term “math-based trader.” Think of it as a structured way to approach trades, giving you confidence and a safety net if things don’t go as planned. Remember, trading success is mostly about mindset. Even if you didn’t like math in school, learning about math based options trading makes common sense and you get paid money as your reward!


I'll catch you here next, I'll see you much sooner if you join our free discord community.


Happy Trading Good Kids!

Justin



I understand the stock market can feel intimidating and complicated, if you want some extra support and guidance, I help people skip levels, schedule a free discovery call with me. Lets talk stocks and see if I can help you! Click on the image below and setup a time that works for you!




This is not trading advice, it's for your education. I'm a dude on the internet who’s been trading for 2 decades, and I use the stock market as my primary source of income. None of this is financial advice. Any trades or decisions you choose to make are at your own risk, this is purely educational!

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