In this episode of the Teacher Money Show, host Shaun Morgan sits down with options trading expert Austin Bouley from Options Auto Trader to break down the fundamentals of options trading. Whether you're new to investing or looking to expand your financial knowledge, this episode offers valuable insights into how options can be a powerful tool in your investment strategy.
Explore the show notes at:
https://www.teachermoneyshow.com/show49
Become a guest on the show:
https://www.teachermoneyshow.com/guest
Leave a voicemail question:
https://www.speakpipe.com/teachermoneyshow
**Introduction to Options Trading**
Options allow you to "bet" on the movement of a stock. Options can offer the potential for higher returns, along with higher risks, compared to simply buying stocks.
**Understanding Call and Put Options**
We go over the basics of call and put options—explaining how call options allow you to bet that a stock will go up, while put options let you bet that it will go down. We also cover essential terms like strike price and expiration date, which are crucial for understanding any options contract.
**Selling Options as an Income Strategy**
Austin recommends selling options, particularly covered calls, as a way to generate income. This strategy allows you to collect premiums while managing downside risk on stocks you already own—a smart approach for conservative investors.
**Risks and Considerations for Options Trading**
We discuss the inherent risks of options trading, especially during strong bull markets. They stress the importance of education, caution, and starting with a conservative approach before exploring more complex options strategies.
**Recommendations for Teachers**
For teachers interested in options trading, Austin suggests starting with covered call ETFs to gain market exposure while generating income through options premiums. He emphasizes the importance of gradually building a position and learning as you go.
---Join us for this informative discussion on options trading basics and learn how you can use options to potentially enhance your investment portfolio. For more insights, tips, and resources, be sure to check out Austin Bouley's YouTube channel and other links provided in the show notes!
#OptionsTrading #TeacherMoneyShow #InvestingBasics #CoveredCalls #FinancialEducation #AustinBouley #PersonalFinance #RetirementPlanning #OptionsAutoTrader #FinancialLiteracy
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