Options Trading: BTO and STO

[@roleypoley8]

Phil you mentioned on one of your earlier podcasts, "how to make your first trade" that if you had less than $100k you would use options to grow your fortune until that point. Could you educate us on how exactly you would do that if say you started with $1000-10000 today? I think there would be a lot of demand for a mini series of that whether it be on KZbin or the podcast. Thanks in advance!

[@novamanlawson6825]

Nice! I like how Phil super simplifies things. My way of learning

[@christophertaylor3150]

I really am benefitting from this after I went to a Rule 1 weekend last January. Thanks, Phil for being so giving with your wisdom!

[@hsetiono]

Buy an option = Buy to open BTO (Player) - pay money & buy a right to something Sell an option = Sell to open STO (House) - collect money & issue obligation

[@krapdivad]

For rule 1 style options trading, do you first need to own, or have the money to own 100 shares of a company (1 contract = 100 shares)? Are these called covered calls and cash secured puts?

[@sheslayfree]

Can you recommend a good book on option trading?

[@ongke8920]

THESE TERM IS OLD AND OBSOLETE

[@melvipais]

Lol rubbish! No mention of the risks

[@joephysics5469]

Of course the risks are minimized by doing options on stocks that you want to own at that given price (at or below your margin of safety). He uses options to buy stocks he has already identified at great companies that are priced way below their intrinsic value. This technique is no riskier than buying the stock outright.