One of the biggest concepts a lot of traders—especially beginners—have trouble with is option entry prices. Every move is pivotal when trading options, and the option entry price you potentially get can set the tone right from the start, and make or break your trade.
In his recent appearance on the T3 Alpha Show, Scott Bauer was live from the CBOE floor, where he was asked the big question:
What can people do to improve prices on their entries?
Scott gave a multifaceted answer that might not be what you expect. Scott gave a candid—yet insightful—response, where he dropped a surprising statistic about 70% of option trades, one tough reality that people need to accept about trading, and the significant difference traders can potentially make if they decide to stay on the sidelines.
The analysis, insights, and strategies shared by Prosper Trading Academy’s coaches in Prosper Insider are strictly for educational and informational purposes only. All content reflects the personal opinions of the coaches and should not be construed as specific investment advice or recommendations. Any examples discussed are illustrative in nature and do not represent actual live trade signals or instructions to buy or sell securities. Trading involves risk, and individuals should carefully evaluate their own financial situation before making investment decisions.
Scott’s response covers a number of details, including:
- 70% of options trade somewhere in the middle of the market, and why it matters
- Why it’s important to ask how badly you need to buy an option (and why)
- The role nickels and pennies can play in option entry prices, and why the small change could add up quickly
- The similarities between trading options and eBay (ie auctions)
- Why Scott thinks testing the waters is a good way to improve option entry prices—especially beginners
- The importance of accepting that sometimes, you’re not going to get the trade you want
Want to hang out with Scott and the rest of the Prosper coaches in Las Vegas?
Prosper Trading Academy is closing out 2025 with a Bang—Vegas style!
On December 8-10th, we’re having our biggest event of the year: The Ultimate Traders Experience: Vegas Edition. It’s an in-person event taking place at the luxurious Wynn Resort in Las Vegas, Nevada.
We have two full days that are jampacked with a ton of events that feature comprehensive training, live speakers and special guests, and social outings that aim to make the most of everything Las Vegas has to offer.
Early bird pricing is available until October 31st—but spots are limited, and are filling up fast!
Grab a spot on our waitlist to lock in your early bird price…
Or contact our Director of Enrollment, Mo Chegini if you’re interested in more information: mo@prospertrading.com.
