36: The Easiest Way To Make Money Trading Stock Options w/ Jeff Bishop

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Growing up poor, it took Jeff Bishop 10 years of trial and error before he made it as a multi-millionaire trader.

With over 20 years of experience trading US Stocks Options, Jeff is a 7-figure trader and the founder of several popular financial education and trading websites – the most popular being Raging Bull.

Listen to Jeff’s story below (including the craziest ‘Worst trade” story ever!) to learn his secrets, strategies, and some helpful advice for anyone interested in trading stocks or stock options.

Podcast Interview

Interview Links

RagingBull.com

Recommended Book

Confessions of a Street Addict by Jim Cramer

Broker and Platform

TD Ameritrade
ThinkOrSwim

Key Lessons

• [06:24] I couldn’t do it on my own but maybe college would teach me how to become a great trader and teach me about the market and it turns out that college just doesn’t really teach you about that either.
• [10:28] I trade options and you’ll learn a real appreciation for risk.
• [10:35] Options is a very powerful tool and when used correctly, it really is a great way to do trading.
• [13:54] I’ve never put myself in a position where my livelihood depended on trading, so I always had more freedom in that way.
• [18:06] If I don’t know those stocks and I’m not familiar with them, I try to stay out of those.
• [19:43] Honestly, I think everybody, if you’re a new trader, you probably should just go pick out 5 stocks that you can follow and become intimately involved with.
• [24:39] I don’t own any Cryptocurrency, but I think I should.
• [25:55] I get in some of the riskiest stuff out there and I’m not afraid to put a lot of chips on the table.
• [27:30] Poker helped a lot in a fact that it gave me a better risk profile.
• [29:24] I think trading on the side and working a real job is probably what 99% of people should be doing.
• [31:38] It’s not always gonna be just buying calls and puts, there’s a lot of other ways to capture the volatility or sell premium.
• [32:02] I would love for everyone to learn how to just sell spreads, I think it’s the easiest way to make money in the market overall.
• [36:42] Sometimes you just don’t need to be in the market. In fact, a lot of times you just don’t need to be in the market.
• [37:25] I think hourly charts give me a good feel for swing trades.
• [39:47] Selling volatility or selling premium – I think that’s just the number one way that people can make money in the market.

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Jeff’s Trading

• He started trading on 1999
• He trades stocks, options in the US
• He’s not in front of his computer all day
• He’s a swing trader
• He typically holds his trades for about 2 weeks especially Options
• He trades a lot of long calls and puts, and these are the trades he’s managing closely as he considers these trades very risky
• He has a very conservative strategy with selling Spreads, so he tries to collect volatility and time premium a lot
• He’s always looking at building a list of companies
• He likes using fundamental and psychological reasons to pick companies
• He uses technical analysis to make his entries and exits
• He has a go-to list of 50 stocks
• His winning percentage is less than 50 percent but his risk management offsets that
• He tries to keep his losses to about 50% on his long calls and puts
• He’s looking for a lot of short-term trading reversals on stocks
• On average, he only has 3 trades a week
• He doesn’t own any Cryptocurrency

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Jeff’s Strategy of the Week

• He looks for an upside or downside reversal. Stocks that climbed 3 weeks in a row above the 13 and 30 hourly indicators where the indicators are crossing over.
• He buys puts when the indicators are crossing over indicating the stock price is getting weak.
• He takes half of his trades off the table when it hits 50% to 100% of the move on the put contract.
• He lets the other half ride as long as the stock stays on the trend.