There are plenty of methods when it comes to trading stock options and I've come across several different systems to use, but does anyone know of one that really works?

Every methods and systems has its risk. Maybe, one method is good for us, but maybe it does not work to others. Methods and systems work depend on the user too. Who we are will determine what is the right methods and systems to guide us success on trade stock. I think, we should try and error before decide one of the best way to trade stock options for ourself

Here's the best way.

1) Subscribe to a good stock newsletter.

2) Take a stock recommendation you like and wait for a 4 week high to confirm the trend.

3) Buy an at-the-money call option (no more than 1 strike out) with 3 or months of time value.

4) Hold the option until ? This part I won't reveal here.

5) Risk no more than 5 percent of your bankroll.

6) Do that over and over and you will grind out the market quite nicely over the long run.

I agree with all of the responses, there is always a risk. Do you due diligence before committing to anything. Research businesses that interest you and learn as much as you can about trading stocks.

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You should Only buy underpriced options. Because Sticking with undervalued and cheap options can provide you two benefits:

First one is less risk money when you buy a cheap option. It is much easier on the pocketbook.

Second one is the stock crosses the strike price before your option expires, because your percentage gains will be more than you bought a more expensive option.

My favorite strategy as of late has been buying OTM options for very little cost. My downside is completely limited and all of my losses are accounted for right at the beginning of the trade. Granted, many of these expire worthless, but when one of these guys goes into the money, a ton of cash can be made.

I treat them the way that I would treat buying lottery tickets, only these are better.