Category •
Trading Tips

Trading Stock Options in 5 Simple Steps

Wall Street Education

Todd Rampe’s Proven, Repeatable Strategy—25 Years in the Making

Trading options doesn’t have to be guesswork. After 25 years of refining his process, Todd Rampe has distilled every trade down to five simple, repeatable steps. Follow these, and you’ll be trading with confidence, clarity, and controlled risk—just like hundreds of his Slingshot Trader students.

1. Find a Mentor

Options trading can feel complex at first, so don’t go it alone. Todd recommends working with a skilled guide—someone who’s been there and can point out pitfalls before you hit them. A mentor accelerates your learning curve, answers questions in real time, and keeps you accountable to the plan.

2. Trade with a Partner

Beyond a mentor, bring in a friend or family member to review your setup and share insights. Talking through an idea out loud exposes gaps in your logic and prevents emotional snap‑decisions. As Todd says, “Two heads are always better than one when the stakes are real.”

3. Identify High‑Probability Setups

Todd’s system begins with a simple checklist: look for stocks with clear momentum patterns, strong volume, or catalysts like earnings. He teaches you to score each setup—only pull the trigger when the odds are in your favor. “If it doesn’t check my boxes,” Todd warns, “I don’t press the button.”

4. Define Risk and Position Size

Every trade has a built‑in stop. Todd’s golden rule: risk no more than 1–2% of your account on any single position. Calculate your maximum loss (the option premium) before you buy, then dial in your contract size accordingly. This discipline is what turns options from a gamble into a strategic tool.

5. Execute with Clear Entry & Exit Rules

With your setup approved and risk defined, you enter the trade. Then you follow your exit plan—whether it’s locking in a profit at +50% or cutting losses at –50% of the premium paid. Todd’s students use a “trade plan template” every time:

  • Entry criteria
  • Stop‑loss trigger
  • Profit‑target point
  • Adjustment or roll rules

Ready to trade with Todd’s 25‑year methodology?
Join Slingshot Trader today and get instant access to his full, step‑by‑step system—video lessons, live Q&A, proven templates, and the community support you need to make these five steps your daily routine.

recent articles