The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network

TIP395: Option Strategies and Building a Billion Dollar Business w/ Tom Sosnoff

Nov 12, 2021
Guest
Tom Sosnoff
Tom Sosnoff, co-founder of the successful trading platform Thinkorswim and founder of Tastytrade, shares his billion-dollar entrepreneurial journey. He discusses how to leverage high implied volatility in trading, layering options on top of buy-and-hold strategies for income generation, and the optimal timing for buying and selling options. Tom also reflects on the influx of new traders entering the market and emphasizes the importance of risk-taking and authenticity in entrepreneurship.
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ADVICE

Sell Options

  • Sell options for higher probability of success, not necessarily more profit.
  • Aim for high probability with unlimited losses and limited profitability.
INSIGHT

Puts vs. Stocks

  • Selling puts offers limited profit but higher probability versus buying stock.
  • An 80% chance of profit is prioritized over unlimited gains.
ADVICE

Layering Strategies

  • Layer option strategies on static investments to improve cost basis.
  • Consider selling calls on holdings to improve returns.
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