Option Trading Riddle of the Day

Option trading fun: Courtesy of member John Gadd,

Q:  Which has the greatest chance of occurring?
1.  The sun rising tomorrow morning
2.  Hotter in Summer, Colder in Winter
3.  RUT hitting 1000 by noon tomorrow

A:  Is a trick question — because all have the same odds…..

It’s funny because John, along with so many other traders is frustrated by the never ending upmove of the RUT. If you haven’t been trading the RUT the last couple months, you won’t understand.

New to the world of Options Selling?

Here at OptionGenius.com, we help you achieve your full potential in options trading. Our goal is to help you make 10% of monthly returns on risk capital while still protecting your investment capital. For each options trading transactions, you will know in advance what the risk is and how to save the trade even if it goes against you.

Stock option strategies

No matter if you have a small account or millions to put to work, our strategies work for all types of accounts and above all, we want you to still make the most out of your life and still enjoy it while earning. Our style of trading only take minutes per day to implement and monitor so you can balance your work and life.

Check out our testimonials from our members.

Advantages of options trading

The rewards of options investing can be far greater than the potential gains of buying or selling stock. However, the risks are also greater. For those of us who love the extra challenge of option investing, it is worth every minute of time you spend.

So make the first step and dedicate some time to learn how to use options the smart way. Got something to share? Please feel free to leave your comments below.


  1. Jeff on April 27, 2010 at 3:29 pm

    I totally agree!! The RUT is WAY too volatile, which is why I don’t trade it! There’s no reason to invest in something with such a high risk/low reward ratio. We already get into the SPX every month, so how about something not so related.. i.e. GLD. OIH, etc?

    Just my 2 cents…

    • Genius on April 27, 2010 at 3:46 pm

      I would have to say that OIH and GLD are much more volatile than the RUT. But you are right, lately the RUT has been acting out of character. Remember though, that the more volatile it is, the more premium you get.

      In regards to its correlation with SPX, you can give yourself some diversification by entering your trades on different days to expiration. You will note that many times, a big move in the markets will impact one of the trades, but not the other.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.