Trading stock options provide for some amazing profit potential. In my years of trading options I've seen many option trades pass me by that would have made me a Millionaire. That's why we are all here, and that is why this site is named Option Millionaires. You can truly become a millionaire trading stock options. The gain potential is literally unlimited..... but the potential for loss is also great. RISK/REWARD.
Which brings me to my motto for out of the money stock options... "a little dab will do".
There is no need to be piling in way more than you can afford to lose. One thing is almost guaranteed with out of the money stock options.... you will lose money. It is inevitable. And if you hit a tough streak, the losses can pile up.... but all you need is one strong option trade to pull you ahead. If you make 4 $200 trades and lose on three of them, but make $1,400 on the last.... well that's why we trade option.
A little dab will do ya: