The Intrinsic Value Podcast - The Investor’s Podcast Network MI Rewind: Should YOU Trade Options? with Tom Sosnoff
Dec 15, 2023
Tom Sosnoff, a well-known entrepreneur and options trader, discusses options trading, including strategies for beginners, implied volatility, expected returns and risks. He also explores Warren Buffett's options strategy and the concept of improving basis through options trading.
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Options: A Strategic Market
- Options trading is strategic and not purely directional like stocks or real estate.
- You can profit even when wrong or lose while being right, demanding a nuanced approach.
Implied Volatility and Options Pricing
- Options prices depend on implied volatility, reflecting expected price fluctuations.
- This sensitivity allows for capital efficiency, either limiting profit for higher probability or maximizing profit for lower chances.
Early Options Trading
- Start options trading early; experience isn't a barrier with modern platforms.
- It builds risk-taking and fast decision-making, applicable throughout life.