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marketheist replied on High Probability Option Trades Cheat Sheet:
We'll post the video transcript here if you'd rather read this lesson http://marketheist.com/2013/05/02/complete-cheat-sheet-for-high-probability-option-trades/

Investor’s stock portfolio can greatly benefit from simple uses of stock options. With much of your savings invested, it’s smart to use options to both protect your portfolio as well as earn extra income from your portfolio assets.

Investor’s stock portfolio can greatly benefit from simple uses of stock options. With much of your savings invested, it’s smart to use options to both protect your portfolio as well as earn extra income from your portfolio assets.

The real world of trading has costs that are associated with them.  You have trading costs like commissions, exchange fees, etc.  You must factor in the spread of the market price when determining your break even. It should be rather obvious then that a liquid market will allow you the chance at entering and exiting the market with minimum impact on market pricing. 

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