The newspapers took a rare break from talking about the cost of oil recently and said goodbye to guitar great and respected songwriter, Bo Diddley -- the man they called "The Originator." All of the obituaries I read about Diddley said in one way or another, "He didn't have a lot of chart-topping hits, but the ones he did have revolutionized the music industry."

That's a tribute I can certainly respect.

As someone who works to only hit options trading home runs -- those super plays that return triple digits and revolutionize your portfolio -- I know that it's important to always swing for the fences. But even in home run derby, there are rules so make sure you're not among the millions of traders who "don't know Diddley."

One of my steadfast rules is, "Never pay too much for your options."

If you pay too much, you immediately reduce your profit potential and you stack the odds against you. When it comes to options, especially the low-price ($2 and under) options that I buy, 20 or 30 cents can make all of the difference.

With cheap options, if the underlying stock crosses the option's strike price (which puts the position "in the money") prior to options expiration, you not only get to enjoy your win but your percentage gains will be greater than if you had you bought a more expensive option.

It's all well and good to tell you to pay less for options, but most people don't know how to go about doing so, and stockbrokers certainly won't give you the secrets.

My Fast Options Profits readers find it immensely helpful that I give them a strict buy under price. It can take a little discipline to not rush right into a trade at the opening bell, but most people find that if they wait until later in the trading day–or even a day or two later–they get a much better price.

The reason is that market makers are watching every move you execute, and if they see a number of contracts immediately pile into an options trade, they will bid up the price. It's better to fly under the radar and make your trades away from the opening-bell crowds. The more time you spend learning the stock market and its foibles...