A: Tom, Chris, and D.R. typically recommend simple options trades. That means they’ll recommend buying call options when they anticipate the prices of an underlying stock will go up, and buying put options when they anticipate the stock will go down.
Occasionally, they’ll recommend more complex trades, such as “loophole trades.” Also known as a vertical spread, the loophole trade is executed by buying one option and selling another option of the same type (either calls or puts) with the same expiration date, but different strike prices.
If it sounds confusing, don’t worry. Tom, Chris, and D.R. will give you step-by-step instructions with each trade, including trade videos where they’ll walk you through the process of placing the order with your broker.