Tom Sosnoff | Option Trading Strategies w/ (TIP395)

We are exploring option strategies and how to incorporate them into your investing arsenal with Tom Sosnoff. Tom began his career as an options trader and went on to co-found ThinkOrSwim, a trading platform that was sold to TDAmeritrade for over $600MM. He then created TastyTrade, a media company with shows focused on educating investors about options. He recently sold TastyTrade for a whopping $1 Billion dollars, all while making hundreds of trades per day in his own personal account.

IN THIS EPISODE, YOU'LL LEARN:
- Tom’s billion-dollar entrepreneurial journey.
- The appeal of options and how strategies that limit your profitability actually increase your probability of success.
- How to identify companies with high implied volatility and expected return and what that means.
- How layering options on top of buy and hold strategies can help generate income whether markets are up, down, or sideways.
- The optimal time to buy and sell an option.

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DISCLAIMER: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting.

[TheInvestorsPodcastNetwork]

Hey guys, what are your key takeaways from this episode?


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[Marisung]

I become a Tom and TastyTrade fan several days ago and it already pushed me to the next level. Love it. Thanks for the interview

[TheQwe]

quote of the day "In order to win, you have to experience things"

[docishi]

Really good questions towards the end. Thank you for doing this.

[marclandry]

Been a fan of Tom for so long, wow, this was a great interview. Thanks Trey, you did a great job.

[wilsonsamuel]

38:19 WOW.. just blew me straight out of the water. This guy is incredible. Great Show, Great interview!

[gavnonadoroge]

27:27 1. trading small trades frequently 2. roll out options at 45, and manage at 21 days

[ddroz]

For all the listener out there confused by Tom's approach I am here to testify it is the most likely outcome to win over time. I doesn't mean you have to be exclusive with it but it can buffer your losses while you hunts for big winners. It can pay consistently at higher returns than Cash or bonds payments. It is for the more active person. Sell Puts and other sells premium strategies lets you control your risk very efficiently. It changed my Trading Philosophy. I hate loosing and don't mind Win small a thousands of times. The hire commission cost still net a more consistent return.

[tonynunez]

Tom acts like this is very easy and anyone can do it. Investing with options and futures is extremely difficult and takes time and a very good education on the markets. Tom is gifted and works 24 hours a day. If it was easy no one would be poor, homeless, and working a job they hated. Many try to learn this business for years and go broke. It requires hard work but you must also be very smart to be successful.

[dhswede]

I like listening to him. His investment style is so different from someone like Buffett who trades based on simple value and keeping those investments which can continue to compound their earning over time which is utilized to come up with PV of stock prices based on future earning.. typically 10 years. Buffett is always looking at the financials and real value versus the daily trading as described here which seems to be nearly completely focused on a type of risk management of the options market. It's interesting that he says he doesn't adhere to using charts and technical indicators commonly known to be used by stock day traders.

[alexh.]

Man, this guy is so comfortable with his own color. That’s something. Like the ‘mark-to-market’ mindset

[FrankGClark]

Excellent interview. Amazing people... thank you both.

[dayzen]

This guy was asking some great questions!

[bryanmcb]

Selling premium is such a great avenue to increase your cost basis

[איעך]

It'd be awesome if I saw a marked to market ticker on everything.

[JettGunther]

My negative criticism of this guest's trading approach, based on my own experience deploying it for years, has been removed.

[louissparks]

When is the TastyTrade methodology going to be documented in a well written and comprehensive book. Why hasn't Sosnoff hired a technical writer to produce such a valuable text.

[edwardflandeiii]

"I don't know if I get paid", that's a LOL if I ever heard, signed Eddie - just love

[pencilcheck]

Didn’t know he co-founded both tos and tastytrade

[Fieldsherbert]

Life lesson when someone tells you it's not about the money it always is.