Podcast – Episode 42 – The World’s Richest Options Trader


Podcast Transcript

Good day to you My fellow options trader and individual investor. This is Allen Sama coming to you with another edition of the Option Genius podcast. Thank you very much for listening. Thank you very much for supporting us. Thank you very much for accompanying me on this journey as we learn about options, about selling options, about passive trading, about making money while we sleep. It’s amazing. I didn’t think it was going to happen, but this month marks the 10th year anniversary of Option Genius. Company started 10 years ago, had no clue where it was going to go, what it was going to do, but it’s amazing the thousands and thousands of people that we’ve actually been able to help over these past 10 years. And the really exciting thing is that we are just getting started to really ramp it up because, in the past, options unions were started as a lifestyle business, meaning that we didn’t really want it to get very big.

We wanted to stay small, just like one website and one service and that’s it. But slowly, slowly it’s grown. And now, it’s at the point where we’re like, “Okay, we need to really get this message out there. Get other people to know what we’re doing and how it’s working and overcome all the obstacles that people have to a safe retirement.” Not worrying about money. Not worrying about expenses and all these bills and all this stuff that people … it’s just, life is too short, and then we have to worry about all this money stuff. Right.

I really appreciate you listening. Thank you for sticking with us for so long. And if you could do me a favor and just rate and review the podcast. Five stars is better than four, but if you could leave a review for us, that would be amazing. It’s easy. It’s free to do whatever podcast listeners software that you use. Just rate it and review it in there. That’s how other people find us. That’s how other people learn about the podcast and start listening and then, hopefully, we can help more and more people get the word out that, “Hey, people need to be selling options,” so I appreciate that.

Now, today’s episode is going to be a little fun one. Video games. Totally, totally, really tangent, right? I’m not even trying to transition in a proper way, and I’m just like, “Oh, leave a review. Okay, now I’m going to talk about the video games.” So look video games, all right, I’ve played them since I was little, and I love them. I still play them. I was an introverted only child, lots of time alone in myself. So you got to stay busy, right? Not that time. Nowadays, the kids, man, everybody’s playing online, so you can play with people thousands and millions of people in the same game all over the world. But back in my day, it was just you and the computer. I still remember my Super Nintendo system. I spent, I don’t know, countless hours with that thing. It was very fond memories. Very lonely memories, but very fond memories.

Nowadays though, I still play, but I play on my phone, and the graphics and everything it’s just much faster on the phone even though it’s a lot smaller, but you can play anywhere you want, and you don’t play the big long games anymore they take hours and hours and hours. Those you used to play on the computer. But the little games that you play on the phone they take two or three minutes at a time and whatnot.

The companies that make these video games they make incredible, incredible amounts of money. If you haven’t looked into this or if you don’t know about it, I mean, it’s unbelievable how much money they make. Millions and millions of people are playing these games, and it’s not just one or two major games. There’s like a lot of these games and millions and millions of people are playing them, and they actually spend money on these games. And these companies are making hundreds of dollars, hundreds of millions of dollars in revenue every single month. It’s incredible.

Now, the way these games normally work is there’re two ways that they make money. The first one is the most logical one is where people can pay the game maker, whoever made the game to advance, so these games are pretty long, and they’re complicated. You have to have certain equipment, and you have to have certain space to be able to play in the game. You have to have land, and you have to have resources and upgrade your equipment, upgrade your characters and all that stuff. You can actually pay money to do that. Some games they have diamonds that you can buy. Some have ruby’s or coins or whatever they’re called. But in almost every single game, if you want to go faster in the game, you want to progress through the different levels faster, then you can actually put money up, real money, pay to get these coins, ruby’s, whatever, and then use those in the game to buy stuff with it. That’s the one way, and that’s the way a lot of people do it.

But there is another way that most of the recent games came out with. Now, the older games, they were out a couple of years ago or a year ago, they didn’t have this other facet, but the newer games now they are adding more and more ads to their games. Now, the ads are not intrusive, so they’re not in the game. You’re playing a game and then just an ad shows up in the middle. No, people hate that. And those are games that people don’t play anymore but now if you want diamonds or rubies or coins or whatever, you can watch ads and get those.

For example, let’s say you want to, if you have time, you’ll watch a 30-second commercial, and they’ll give you five rubies for that and then you’re allowed to do that every hour or two. So every time you watch you get five, five, five, you just add those up and eventually then you can spend those. For the people who don’t have the money to spend on the games or who don’t want to spend the money on the games, like me, you can actually buy ads, and so this is overcoming one of the obstacles that these game makers had there where kids were playing and kids didn’t have money to buy and the parents wouldn’t give any money to buy stuff in the game. But now they can actually watch the ads and these game makers are making money from all these people that are watching ads. And it’s incredible. It’s a two-way revenue source. It’s amazing. Who knows, maybe my next life I’m going to be a video game maker. That’d be pretty cool actually.

Most of these ads are from Facebook right now. That’s just the way Facebook has really tapped into video ads and most of the games that I’ve been playing lately, they have these Facebook ads built in. Why am I telling you about video games? I’m leading into something. Okay. It’s just part of the story. So I’m playing my favorite video game. Right now, it’s called Hustle Castle. That’s just the name of the game. And this little thing pops up, “Hey, you want to extra turns or spins or whatever? You can watch this video.” So once in a while, I watch a video, especially when I have nothing else to do or I’m waiting for something else to happen in the game if I have 30 minutes to kill, I’ll go watch an ad. So I say, “Okay, here, let me watch this ad.”

And this guy comes on, nice looking guy. He has a video, he’s in this private jet, laughing and smiling with a bottle of champagne or wine or something. Then he’s driving this exotic sports car. I don’t know what it was. Maybe it was a Ferrari Lamborghini something, who knows, but he’s driving his car around and whatever. And then he’s meeting all these other people and they’re all well-dressed. They’re all laughing and they’re smiling and they’re walking around, I don’t know where they are, in some big office building or something or whatever. And then he starts talking and he goes, and most of the time my phone is off, the volume is off. So I don’t know what he’s saying, so I just … The ad was over or whatever the first 30 seconds of the ad was up and then I could skip it. So I just skipped it. And then that ad just kept coming over and over and over again. So I was like, “What is this guy talking about?”

And then one time I had the audio was actually on, the volume was up. So he started talking and he says, “Hey, I am the richest option trader in the world, blah, blah, blah, blah, blah, blah,” whatever else he was saying. And I was like, “You’re the richest option trader in the world? Oh, that makes sense. That’s why you’re in the plane and the car and all that stuff. Okay, cool, fine.” And then that intrigued me because he’d said he was an options trader. So I said, “What’s this guy doing? Let me see what this guy’s all about.” Now, obviously, you don’t believe them right away but let me check it out.

I go over to his website and it turns out that he is a option day trader and the whole point of his website and whatnot is because he’s going to teach you how to make millions like he’s made, supposedly, but he’s doing it through day trading. Now, for those of you who have never done it, day trading stocks or Forex or commodities, futures is very, very hard. Most people lose a lot of money because you’re competing in that market against high-frequency traders. You’re competing against real good professionals that know what they’re doing. You’re competing against Wall Street with its hundreds of trillions of dollars and resources and everything. To be a day trader you’re competing against all those people. So it’s very difficult to make money doing that but this guy, the guy in the ad, he is an options’ day trader.

So I mean you take the hard difficulty level and you multiply it by 10 because we already know right, on this podcast, we already know that buying options is a loser’s game. But this guy, he’s taking the risk to extreme because he’s buying and selling options in seconds or in really, really short timeframes. But he’s buying the options. You can’t be an option seller realistically and make a lot of money day trading. You have to be a buyer. Now, I don’t want to judge. I don’t know. I didn’t look into his numbers and whatnot. So maybe he is making a lot of money and I hope for his sake he is and I hope for his students or whatever that people are paying him, tens of thousands of dollars to teach how to do that same thing. I hope they’re learning something that they can actually get their money back.

But guess what? Day trading is nothing more than a job, right? Are you with me here? Do you understand what I’m saying? Basically, you trade. Okay. Hopefully, you make money and that’s it. If you’re not trading, you’re not making anything. And that to me that sounds really sucky because I want to make money in my sleep. I want to make money no matter what I’m doing. And I don’t want to be stuck to my screen looking at my monitor, looking at this chart and that chart, what’s happening in the news and having my attention span all over the place.

So while this guy was filming his commercial, right, he wasn’t making any money. While he’s flying in his little private jet or whatever, hopefully, it’s his, he’s not making any money. While he’s renting his exotic cars to show off, I mean, you know what I mean? Sorry. I mean, driving his Lamborghini, he’s not making any money. Me, on the other hand, as I record this option I’m sorry, as I record this episode, my options, the ones I’ve sold, they’re decaying. They’re making me money even as I’m doing whatever I do in normal life.

Theta, which is another word for time decay is just a lingo, just a jargon that we use in options trading. The theta decay of my options is working in my favor, right? I don’t need market volatility. I don’t need news to make my stocks go up or down. Heck, all I really need is a laptop. Or you could do it on a phone too, but I prefer the bigger screen. Getting old, eyes are it’s harder to see now, so I prefer my laptop and I really would prefer my desktop. But you could easily do it on a laptop as well. It’s just simple. So you have this, the commercial guy, the day trader options guy, and then on the other side you have me, which is the opposite. Right? I guess compared to him I would be a country bumpkin or I’m just laid back and I don’t want to trade a million times and, and I’m still making a ton of money, but I guess it comes down to really what you want.

I mean, sure. Yeah. It’d be great to have a private jet. Right? Well, I mean, I don’t really fly around that much. I like to stay with my family at home. And since I use my credit card for most of my purchases anyway, whenever you go out, you go to dinner by buy jazz whatever. I use my credit card. I have so many points and miles that whenever we do go on vacation, my points and my trips are free anyway. True, I’ve always wanted a Ferrari. It’d be really cool to have a Ferrari. I always wanted one but then when you think about it, realistically, where am I going to put the three car seats and the boosters for my kids? Right? We’ve got three kids, they’re all still in boosters and car seats. Where am I going to put them? I don’t have any room. So having a Ferrari and exotic sports cars is not really practical.

Our house, yeah, we could buy a bigger house, but it’s already huge enough as it is. I mean, heck it has six rooms and we barely even use two of them. They’re just for storage. Right. So, I mean, I think that if you want to take big risks. If you want to aim and, and go for the home runs and grand slams and get rich quick, then day trading options might be something that you want to look at. Like I said, it’s super dangerous. It’s super risky. You’re going to lose all your money most likely but it might be for you. Let me just keep in mind that you’re playing a loser’s game in which most traders will lose. Most traders are going to lose their shirt and quit doing that. So I mean realistically the best way to make money in day trading is to sell day trading coaching. I said it, there you go. The best money to make money in day trading is to teach other people how to do it.

I mean I really don’t know if the guy in the commercial is the richest option trader in the world or not. I mean I hope he is for his sake. Right. I mean, you wouldn’t want to be lying or anything. I mean, he seemed like a nice guy, but at what cost? What are you willing to give up for the money? That’s a personal thing. I’m sure if you’re younger if you’re in your 20s you might say, “Yeah man, I want to do day trading. I don’t want to work. I don’t want to, I don’t want to do anything. I just want to be trading all day long and make millions of dollars and have my own plane and Ferrari.” And for those type of people, if you’re that age, if you have nothing to lose, then yeah, maybe that sounds awesome.

And I think that those type of commercials when you see them where they’re appealing to that get rich quick type mentality people, they’re aimed at those type of people. Younger, nothing to lose, not a lot of money. People gullible enough to pay tens of thousands if not hundreds of dollars, thousands of dollars to pay for coaching programs but that’s not me. And I don’t think that’s you either because I mean I don’t want to be the richest guy. You can’t take it with you anyway. Right. I mean if it were me and I had a lot of extra money, I was thinking about it the other day,

A couple friends were talking and they’re, “Yeah, the lottery Mega Millions, whatever is up to something.” And I’m like, “Oh, cool.” And they’re like, “You going to buy tickets?” And I’m like, “No, man, why am I going to buy lottery tickets? That’s crazy.” And they’re like, “Well, you never know. You could hit, it’s only a couple of bucks, you can put it in … And I’m like, “I don’t even know what I would do with the money. If you give me, tomorrow if somebody calls me and says, “Hey, you won the lottery,” or, “Here’s $10 million that your rich uncle left you that you didn’t even know about.” I’d be like, I’d probably look for ways to give it away. I don’t know what to do with it. I don’t even want it. Right.

I would rather have time to spend with my family, to volunteer, to enjoy my life, to travel, to learn new things, to take different classes maybe. That’s what I would want to do. But sitting at a screen, day trading, doing a lot of stuff, that’s not it. I mean, that is why I designed passive trading as a way to make me more than enough income, but still have the life I love, so that when I do go on vacation right, and we do, our family goes on lots of different vacations and we love going on vacation. But when we do that, I make money the whole time, right? I’m not stressed out that, “Oh, my God, I’m on vacation. I’m not making any money. I got bills to pay. I’ve got to pay for the Ferrari payment. I can’t go on vacation and I need money to make.” No, that’s not this kind of stress that I want.

There’re a lot of people say that the thing like, “Oh, I want to be a trader. I want to trade for a living.” Oh, that’s great. That’s wonderful. That’s a very aspirational thing. But they look at it and they say, “You know what? In order to survive, I need to make $10,000 a month and I need to make it from my trading each and every month.” Well, that kind of stress is going to put you in the hospital because if you have to start over at zero and you have to make 10 grand every month, and if you don’t make it, then you’re eating into your capital. That is going to, I mean, you’re just going to be bitting your teeth and grinding your teeth all night long. You won’t be able to sleep because that’s crazy, crazy stress, right?

But if you follow the things that I’ve been sharing with you guys in this podcast in these different lessons and the stuff that we teach at Option Genius, you will be able to set yourself up in a way where you get to enjoy trading. You do it in a way that’s passive, doesn’t take a lot of time. You earn a lot more money than you do in almost any other investment out there. And you get to do it without a lot of stress. And then eventually, yeah, you do get to trade for a living if you want to. You will be able to build up your accounts so that the theta decay and the income that you get from your stocks and your selling options portfolio will equal whatever you’re making as income right now, so it’s definitely easy to get there.

But to make the jump from, you know, “Hey, I’m going to quit my job today, and I need to duplicate my income right away.” People, that’s the dream that these type of commercials, the riches option traders, the day trading commercials, the trading academy’s and whatnot, those are the things that they get you. That’s how they sucker you in. That’s how they get you to pay for the dream because that’s what they’re selling. They’re selling you a dream. Realistically, if you could learn all that stuff on your own, but they’re like, “Okay, we’re going to give you a shortcut. We’re going to show you a shortcut.” Well, I mean, I don’t know how they have the time to do all of that because every time that the Mr. Day Trading Option guy is teaching the class, he’s not making any money from his trades. So yeah, if he’s making money from teaching, then he doesn’t have to trade. And I think that’s the thing, right?

And that’s what people ask me all the time like, “Allen, if you’re making so much money, why are you teaching people how to do it?” Because I got plenty of free time. Like I said, I’m recording this episode. My options are decaying, and I’m making money just like Warren Buffet says. I mean, it’s his favorite and one of my favorite quotes of his, and he’s saying that if you do not find a way to make money in your sleep you are going to work until the day you die. And that’s what I’m going to leave you with. All right? If you do not find a way to make money in your sleep, you are going to work until the day you die. Folks, keep the odds in your favor.

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