What are your OPTIONS? Financial options, that is! Today's guest explains what options are and gives a great picture of how they can be a great asset for you. “ A lot of people like to confuse options with just regular stocks or equities and how they move, but basically it's very simple. You have the stock market and then you have derivatives. Derivatives are basically options and what that means is this. It is another way to invest in the stock market, but use leverage to your favor. They're basically contracts that are tied to the stock market, that basically expire at a certain date forward in time.” He goes into detail using an example about “Tesla,” but here is another simple example he uses, “I can buy those at a small price and sell those at a larger price basically, what Walmart does in the wintertime. They buy millions of hotdogs to sell you during the summer of the next year right so that's the basic idea behind options and on a psychological kind of on a larger I would say more adult scale. It's another way to be able to invest your money and be the captain of your own ship, which is important not only to the baby boomer generation that's retiring now but also the millennial generation that is actually drowning in debt.”
Guest, Options Strategist at Simpler Trading, Jack Roberts, comes from small-town West, Texas. He has a relatability factor and characteristic that’s made many members feel right at home with his easy-going mentality and thirst for knowledge. He started his path as a full-time trader with his grandfather as his mentor, and later on, John Carter. Jack took it upon himself to pursue trading from a self-teaching perspective. In the first four years, he spent trading only stocks and then moved into options once he saw some additional profit. His ‘aha’ moments came when he got a jump start on Elon Musk’s pipe dream and bought options of TSLA, which have since skyrocketed. Jack was one of the first to get in on both AMD and TASR (which is now known as Axon). That’s when he realized he has a knack for seeing things before most and has used that to build his trading career into what it is today.