Wendy Kirkland - Option Trading in Your Spare Time: A Guide to Financial Independence for Women

In Your Spare Time

A Guide to Financial Independence for Women

Wendy Kirkland and Virginia McCullough

Copyright 2009 by Wendy Kirkland and Virginia McCullough

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This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.From a Declaration of Principles Jointly Adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations

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Library of Congress Cataloging-in-Publication Data

Kirkland, Wendy.

Option trading in your spare time / Wendy Kirkland and Virginia McCullough.

p. cm.

Includes indexes.

1. Commodity futuresUnited States. 2. Options (Finance)United States. I. McCullough,

Virginia. II. Title.

HG6049.K54 2009

332.632283dc22

2009011861

Printed and bound in the United States of America.

VP 10 9 8 7 6 5 4 3 2 1

Wendy wishes to dedicate this book to Jack, who released and propelled her like a kite so she could experience flight, but whose gentle hand kept her from flying too far away.

Virginia dedicates this book to her children, Laura and Adam, who are always the light of her life.

The path to empowerment has been made smoother by the efforts and support of many people. My love and sincere appreciation goes to them all. My buddy Rachelle Rogers first shined her light on option trading and introduced me to Robin Laylon, my first options instructor. Robin helped me build a firm foundation and provided tools for success. My good friend Virginia McCullough agreed to walk at my side as we placed our feet on the path.

Most importantly, Jack, my husband, lover, and friend, has supported my efforts and encouraged me for forty-three years. My three children, Kim, Leslie, and Patrick, have always stood on the sidelines cheering me on, saying, Go girl. You can do it. Likewise, my brother and sister-inlaw, Jeff and Peg Roulston, let me know that even if I should stumble, the landing will be cushioned by their love and support. And finally, I thank my dad, Abbott Lieberman, my first exploration mentor. He taught me that anything worth doing holds risk, and how I experience the journey is my choice, so go make it a happy day!

Wendy Kirkland
Asheville, North Carolina
2009

My friend leaned across the table at the restaurant where wed met for lunch. Then she glanced around the room, as if making sure no one could hear her. Im involved in something newand very exciting, she whispered.

Oh? Is it a secret? From the way she was acting, I thought she must be talking about a new relationship or perhaps a change your life seminar that offered the keys to lasting happiness or something equally momentous.

She shook her head. No, not at all, but sometimes people dont believe me. She stopped talking long enough to take a deep breath. Okay, here goes. In seven days, I made a 55% profit trading options on eBay stock.

You did what? I had to follow the nouns, so to speak55% profit, options, eBay stock. I had no idea how one couldlegallymake a 55% profit on anything in a week. But that day my friend explained it to me in brief terms, and by the time I went back to the store I own with my husband, Jack, Id eagerly agreed to take a class and explore the world of option trading. I felt as if Id been given a chance to jump on board a train with a very appealing destination.

I was also a bit confused, even bewildered. Jack and I have owned and operated a retail gift store for more than twenty years, so I have a good understanding of profit margins. I know how difficult it is to find those hard-earned numbers after deducting escalating expenses. For sure, our profit comes in single or low double-digit figures, and our business is considered quite successful.

Over these past twenty years in our particular business, which is dependent on a steady flow of tourists in our locale, Jack and I have kept the doors open seven days a week, and in that time, weve raised three kids, paid our mortgage, and contributed to their college fees and other expenses. Weve loved being our own bosses, and thats the key to what kept us going during some very difficult times. (That same deep desire for independence also piqued my interest in trading options.)

We consider ourselves fortunate in most ways, but the downside of our life hit home more and more as we crept up on our retirement years. I realized that wed been so busy working, plodding along the path of our wellgrooved life, and being the kind of supportive parents and grandparents we thought we should be, wed left ourselves out of the equation. We invested in our business, but wed failed to invest in ourselves and our future.

Like many millions of Americans, we had opened a retirement account to which we were supposed to make regular deposits or at least contribute a lump sum at the end of each year. Somehow, though, things always got in the way. One year it was a wedding and the next year one of our grandchildren needed help only a specific private school could provide. The next year, we had a major car repair and we ordered extra inventory for the business at a great price. It was always something! Every new challenge that came up loomed with greater immediacy than that meager and languishing retirement fund. Besides, until a few years ago, retirement seemed lightyears away.

I dont want to leave the impression that I never thought ahead. I often daydreamed about my so-called golden years. In my fantasy life, I imagined Id be a rather happy retiree, free to spend quality time talking to my tomato and pepper plants and dressing my perfect dog in galoshes and a raincoat when we went out for walks in the rain. I also planned to spend even more hours in front of the computer writing interesting stories.

These flights of imagination might have continued, but to tell you the truth, Id started to lose sleep from worry. I tried asking for a sign and affirming that Id soon have the answer; I even visualized an arrow pointing in the right direction. I figured that without some kind of dramatic flash of intuition that would lead to an entirely new opportunity, Id be working until I droppedand that would probably happen between waiting on a customer and borrowing from one account to pay a bill on another.