This episode explores options trading strategies with Cody Yeh, a former engineer turned trader, who emphasizes capital preservation as his primary goal. Against the backdrop of current market volatility, Yeh shares his journey from scalping futures to adopting a more passive, income-focused approach using options. More significantly, Yeh details his "fast, medium, and slow money" strategy, allocating capital across short-term S&P 500 options spreads, selling puts on individual stocks he wants to own, and long-term buy-and-hold investments. As the discussion pivoted to risk management, Yeh stresses the importance of understanding market fundamentals and avoiding excessive leverage, drawing inspiration from Warren Buffett's approach to selling options. In contrast to traders chasing high returns, Yeh advocates for a more conservative approach, focusing on consistent, single-digit growth and dodging potential market pitfalls by monitoring geopolitical events and adjusting positions accordingly. Emerging industry patterns reflected in Yeh's strategy highlight the value of teamwork, structured rules, and a disciplined approach to options trading for long-term financial success.
