A put option is an insurance policy where one party is insured at a certain price, that they're going to get paid that price if the stock price drops below that price. So soa insured, and that's that's called a put option. But don't worry about the option language,. It's just t understand it as an insurance polly. That's one kind of option. But there's another kind of option, and I wanted to just talk about in reference to the sort of extreme risk side of things. The one that's out in the news is known as a call option, and it gives some one the right to call to to take your stock away. For both parties
Last week, Phil and Danielle talked about one of the two extremes of Warren Buffett’s Investing strategies: Net-Nets. This week, the investing duo discusses the other extreme: Options.
As the market started booming again post World War II, Buffett found the Net-Net strategy to be extremely difficult, so he transitioned to trading options – a riskier, but higher return strategy.
Tune in as Phil and Danielle explain everything you need to know about options trading, why it should not be considered as investing, and what is in between both of Buffett’s two investing extremes.
To learn more about how to successfully invest as a beginner, download a copy of Phil’s Complete Guide to Investing for FREE here: https://bit.ly/3oSjWaK
Topics discussed in this podcast:
- The Net-Net Investment Strategy & History
- Options Trading
- Investing Extremes
- Put Option
- Call Option
- Meme Stocks
Additional resources discussed in this podcast:
For show notes and more information visit www.investedpodcast.com.
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