Side Hustle Show, 342, How to Make Money Trading Options.

Here are eight rules for success for total newbies.

What's up, what's up, Nick, Loper here. Welcome to the Side Hustle Show because sometimes you're

going to lose your voice and the show must go on. I feel like there's a metaphor in

there somewhere. In this episode we're tackling a topic that's been

frequently requested by listeners but is somewhat foreign to me and that is

options trading. To help school me on this, I'm excited to welcome my friend Kirk deplecess to the show.

Kirk runs the mega popular site option alpha.com where you can get all sorts of free options trading training.

He's been at this for over 10 years and the site has over 150,000 members.

Kirk explained options contracts as insurance and as a trader you can either be a buyer of insurance or a seller of that insurance.

On the buying side, it's a way to kind of amplify your trading power through leverage.

Instead of buying a hundred shares of a certain stock and hoping it goes up, for example,

you could buy contracts for a fraction of the share price they give you the

option to buy the stock at today's price should it go up by a defined amount in a

certain amount of time that's the contract contract term. If it does, you exercise your option and you make a big

gain on that small initial investment. If it doesn't, you just lose out on your initial option

contract purchase price, kind of like your car insurance

premium if you don't get into a wreck. On the seller side, you're the person selling that

insurance. You collect the cash up front and as long as the trigger event doesn't happen, you keep it.

Kirk argues that just like insurance companies are some of the most profitable in the world,

option sellers are most often the winners in the options trading game.

Stick around in this episode to learn more about how this all works in practice and

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