Stocks, Options, and Multi-Leg Options
Most investors understand buying stocks. It's fairly simple—you purchase the stock at a certain price, then hopefully sell it at a higher price. The profit increases with the price of the stock increases above the purchase price. Losses are incurred when the price of the stock decreases below the purchase price.
To be successful, you need to have price right.
Investors have options
You don't have to own stock to invest in the stock via option contracts. Many stocks listed have options. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price (strike price) on or before a specified date (expiration date).
Options can be attractive to investors because they can reduce the capital required for a similar return while also introducing ways to grow assets when markets go lower.
However, unlike stocks where you only have to be right on price. With single options you have to be right on price AND time.
Spread your investing wings
Talk to anyone who's ever tried options before and they'll tell you they are risky and you should avoid them. It's true there is risk. Anytime there is opportunity there is risk. It's also true that many who have had poor experiences with options did so because they used single options instead of "spreads."
An option spread is created by entering 2 or more option contracts at the same time to create the investment. Investors use combinations of options in spreads to build "Multi-leg Option Strategies" or MLOS. MLOS have been used by financial institutions and sophisticated investors for decades. The challenge is finding the right MLOS for a given stock.
MLOS are the meme stock you can actually win with
Investors use combinations of options in spreads to build "Multi-leg Option Strategies" or MLOS. Most of the Miiflo "drip types" are MLOS. MLOS have been used by financial institutions and sophisticated investors for decades. The challenge is finding the right MLOS for a given stock. Miiflo does the heavy lifting of finding stocks that are the best candidates for each "drip type."
Drips, Drip Types and Flows
Traditional buy-and-hold stock strategies limit your ability to profit in different market conditions. Multi-leg options strategies give you the flexibility to profit whether markets go up, down, or sideways. By combining multiple option legs, you can create positions with defined risk, unlimited profit potential, or even positions that profit from time decay.