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In this episode, we discuss options trading, what options contracts are, how they work and how I make money using them. Disclaimer: \u201cI am not a registered investment advisor or securities broker dealer. These are my thoughts and are not advice. Seek your own education or you will lose money.\u201d #4 Rule of Gold - (Richest Man in Babylon) Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep. Become familiar with how options, learn and practice before you get involved. If you don\u2019t, as the rule says, Gold/Money will slip away from you. Learn the difference between a Call vs Put, this is part of the foundation of options trading. Pillars of Option Contracts: Options chain Strike Price Expiration day Bid vs Ask How money is made, contract pricing: Premium Time value Intrinsic value - A few things that I look at when scanning for options contracts include: stock price action, history of movement, strategy to extract money, and percentages/standard deviations (in/out of money). You want to learn about individual stocks and industries better understand how the Market Maker will price the options. WATCH OUT FOR SPREADS The stock market was created to fool the most amount of people-most of the time. Beware of volatility. WE LOVE VOLATILITY because we can make large sums of money but we have to learn how to navigate it or we can lose large sums of money if not navigated correctly. Once you become familiar (rule #4) then this can be really easy. Options trade of the week: Stock: Slack technologies; ticker symbol: WORK Call option; Time: 5 days; Cost: $60 (34C, 33.5C) Sold 34C: $36 (+20%); Sold 33.5C: $80 (+167%)

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WHAT\u2019S THE KEY: Learn \u2192 test \u2192 \u201cperfect\u201d \u2192 Scale up = $$$

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