David Jaffee from BestStockStrategy.com: Interview with Options Trading Genius
David Jaffee is a leading options trader and one of the best options trading teachers in the world. He is an Ivy League Graduate and worked on Wall Street as an investment banker.
HELLO DAVID JAFFEE, THANK YOU FOR JOINING US! HOW DID YOU GET STARTED IN FINANCE?
I graduated from Cornell University and have worked at Morgan Stanley, CIBC World Markets and Petsky Prunier. I worked as an investment banker on Wall Street but didn’t like it.
The lifestyle of a banker is very unhealthy. I have always been interested in the stock market and have been trading and investing for ~15+ years.
Over time, I’ve perfected my strategy.
WHEN AND WHY DID YOU START BESTSTOCKSTRATEGY.COM?
I started BestStockStrategy.com in 2017 because I was bored with solitary trading. As a trader, I was making a few trades a day, but didn’t have much else to do. I had too much free time.
As a result, I began teaching options trading and I’ve taught over 1,500 students my strategy.
WHAT IS YOUR OPTIONS TRADING STRATEGY?
I sell option premium. By selling option premium, we’re able to capitalize from the actual volatility being less than the expected volatility.
Essentially, by selling options, we’re turning ourselves into insurance companies.
The problems occur when actual volatility is more than expected volatility.
When this happens, it’s important for traders to be able to minimize their risk and roll / manage the position.
I tend to sell options on only a handful of stocks (the largest companies in the world). Stocks like Amazon, Facebook, Tesla, Mastercard, UnitedHealth Group, etc.
By selling options on the largest companies, we don’t have to spend time researching the companies, instead, we simply have to be patient and disciplined to optimize our entries.
WHAT RETURNS ARE YOU TARGETING?
We target a return of about 3.5% a month.
I’ve found that trying to earn more leads to too much portfolio volatility.
A targeted return if 3.5% a month allows people to control risk while also earning about 40% a year.
WHAT’S THE BIGGEST MISTAKE TRADERS MAKE?
The biggest mistake that traders make is that they become too greedy and get too aggressive. They trade too large, too often and become overconfident.
Then, they run into a situation where they become unlucky and end up losing a lot of money.
In general, it’s possible to win almost 100% of your trades as long as you don’t trade too large.
We try to win about ~95%+ of our trades and the trades that we don’t win, we try to minimize losses.
HOW CAN INTERESTED READERS GET STARTED?
Interested students can visit https://BestStockStrategy.com to receive $400+ of valuable free options trading information. They can join the options trade alerts / signals to ascertain their knowledge level. The trial is only $19 for 7 days.
Additionally, I have many options trading tutorials and videos for options trading beginners on my YouTube channel at youtube.com/beststockstrategy
Thank you for reading this David Jaffee Interview.
Selling option premium is a great way to earn consistent returns in the market. We appreciate David Jaffee for sitting down with us for this interview.