A meam stock is one which is has become an idea in the minds of a lot of speculators. They're buying a call option anticipating the price of this stock is going to go up. So if you have obligated yourself on a call option, you've been obligated to sell your stock to somebody at a set price. And then the person that has the right to buy that stock at a set prices has paid you for that right.
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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