the better off you'll be!

To Market, to Market...

Above all, remember that the stock market is, in fact, a marketplace. This means that you can get options and stocks on sale and many sellers will negotiate with you, just like in real life.

When you are ready to buy an option, be sure to test the waters first. Don't automatically assume that you have to accept the high ask price.

(Remember, there are generally three listed prices for an option or a stock: the "last" price, the bid price and the ask price. As option buyers, we buy at the ask price and sell at the bid price. This rings true for anything traded on open market, including equities, currency or even the cost of oil futures. Click here to learn more about how options are priced.)

For example, let's say you want to purchase an option that I have recommended at $1.10 or under. If you went to buy that option immediately, however, you might find that the ask price is $1.30.

Don't despair. Take a minute or two to test the water. Enter a limit-order price of $1.10 and see whether the market maker will bite. You will be surprised how many times you will get your price (i.e., $1.10) instead of the $1.30 asked price.

If your limit order at $1.10 is not filled after a minute or two, you can modify your order and pay the asked price by entering a higher limit order or at the asked price.

Test these strategies the next time you buy options because even though we may not have any control over the cost of oil, we can always pay less for our options trades!

If you'd like to make home run returns on options that cost less than a gallon of gas, click here to join us at Fast Options Profits! Learn what it's like to make triple-digit returns in three weeks or less with simple-to-execute options trades from Ken Trester, an options expert with more than 35 years of experience.