We all know the Oracle of Omaha is a legendary investor, but does his wisdom apply to short-term options trading?

In this episode, we break down Warren Buffett's most famous quotes and analyze them through the lens of an options trader. We discuss why looking for "one-foot bars" over "seven-foot bars" is the secret to high-probability trading, and why sticking to your "circle of competence" can save your portfolio. We also debate where we disagree with Buffett—specifically regarding holding periods and diversification—and how to adapt his principles to generate cash flow today.

Whether you are a value investor or selling puts for income, this conversation reveals how to simplify your strategy and get your money working for you.

In this episode, we cover:

• Why you should look for "one-foot bars" (the KISS principle).

• The importance of trading what you know.

• Why "holding forever" might not work in the age of AI.

• The harsh reality of making money while you sleep.

Resources Mentioned:

• Get your free copy of the Passive Trading book: passivetrading.com/freebook

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• Look for the "One-Foot Bars": Don't overcomplicate trading with complex Greeks or obscure data. Look for the "layups"—trades with high probability and less stress (like the 90% probability put).

• Stick to Your Circle of Competence: Your watchlist should reflect what you know. If you work in oil, trade oil. If you eat fast food, trade those companies. You have an edge in industries you interact with daily.

• Adapt to Reality: The market will not adapt to your risk tolerance. You must be willing to change your strategy (or sit on the sidelines) when the market environment shifts.

• Income vs. Holding Forever: While Buffett loves holding forever, options traders often benefit from trimming positions and compounding gains actively rather than passively waiting for decades.

• The Ultimate Goal: "If you don't find a way to make money while you sleep, you're going to work until you die." Options trading allows for theta decay (time value) to work in your favor overnight.

"If you cannot explain your strategy to a 10-year-old, then it's too complicated... I don't look to jump over seven-foot bars. I look around for one-foot bars that I could step over."

• (01:50) The "One-Foot Bar" Rule: Why simplicity beats complexity in trading.

• (04:02) Circle of Competence: Why your watchlist should be unique to you.

• (07:23) Adapting to Reality: Why you can't force a strategy on a market that doesn't want it.

• (16:47) Voting vs. Weighing Machine: Short-term price action vs. long-term value.

• (21:29) The Debate on "Holding Forever": Does this apply to the modern options trader?

• (40:04) Making Money While You Sleep: The ultimate goal of passive trading.

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We've all heard of the "TACO" (Trump Always Chickens Out) trade, but there's a new, more powerful government-driven strategy in play. This episode reveals a simple yet potent playbook for what we're calling:

The New Trump Trade (Not TACO).

We explore the simple thesis: when the U.S. administration takes a direct ownership stake in a company, we should consider trading right alongside them. This isn't just a theory; we're seeing the results in real-time. We'll look at the government's involvement with Intel (INTC) and how that stock has nearly doubled, and then dive into a watch list of rare earth and materials companies like MP Materials (MP), Lithium Americas (LAC), and Trilogy Metals (TMQ) that have seen explosive returns since the government stepped in.

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• The New "Trump Trade" Thesis: The core idea is simple: if the U.S. government takes an ownership stake in a public company, investors should consider "following the smart money" and buying shares or long-term options, as the company is now a strategic national asset.

• The Intel (INTC) Example: The playbook started with Intel, which the government partnered with to secure the U.S. chip supply. Since the government's involvement, the stock has nearly doubled, proving the thesis that these companies "are not going to fail."

• The Rare Earth Materials Watch List: The strategy has expanded as the government seeks to secure domestic supplies of rare earth metals. A watch list of companies the government has already bought into includes:

  • MP Materials (MP): Up from ~$30 to ~$89.

  • Lithium Americas (LAC): Up ~66% in two weeks.

  • Trilogy Metals (TMQ): Up from ~$2 to ~$8 in two weeks.

• The Government Will Set Price Floors: The administration has announced it will buy more companies in other industries and, significantly, will set price floors for these commodities. This is great for company profits (though not capitalism at its best) and provides a strong tailwind for the stocks.

• How to Play It: Stocks or LEAPS: Investors can trade these companies by either buying the stock outright for a long-term hold (aiming for 3x, 5x, or 10x returns) or by buying long-dated LEAP options (6+ months out) to control the position with less capital.

"The Trump trade that I'm discussing... is that the companies that the administration buys or takes a piece of are could be very excellent traits... we should be trading right alongside the government."

• (00:40) The Old "TACO" Trade: A quick review of the old "TACO" (Trump Always Chickens Out) trade, which was based on him bluffing about tariffs.

• (03:52) The Fed Playbook (Market Context): A brief look at the current market environment, with the Fed signaling rate cuts, which provides a bullish tailwind for the stock market into the end of the year.

• (04:48) The New Trump Trade Explained (Intel): The episode reveals the new playbook: follow the government's investments. It starts with the Intel (INTC) deal, which has seen the stock nearly double.

• (08:23) The Rare Earths Watch List: The host unveils the new watch list of materials and mining companies the government is investing in, including MP, LAC, and TMQ, and their explosive returns.

• (14:52) How to Trade These Stocks: A discussion on the best ways to play this trend, such as buying the stock for a long-term hold or using long-dated LEAP options for a cheaper entry.

What do you think of this 'New Trump Trade' playbook? Let us know your thoughts in the comments. If you found this insight valuable, share this episode with a friend who is looking for new trade ideas.

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You can't trade without a broker, but having the wrong one is like trading with one hand tied behind your back. With all the consolidation and new players in the industry, how do you choose the right one for your options strategy? This episode is a complete review of the current landscape. We're talking about:

Option Trading Brokers Reviewed.

We'll break down the pros and cons of the biggest names in the game, from the undisputed champion of platforms, Thinkorswim (now at Schwab), to the pro-level (but difficult) Interactive Brokers. Learn why tastytrade's value may have changed since its acquisition and discover some lesser-known, low-cost brokers like eOption and TradeStation. We also discuss the rise of Robinhood and why, for serious options sellers, a desktop platform is still king.

Don't just pick the first broker you see. This is your guide to finding the right fit for your trading style. Did you know your commissions are almost always negotiable? Subscribe for more essential trading tips.

• Best Overall Platform: Schwab (for Thinkorswim): Despite a potentially slow setup process, Schwab is rated #1 primarily because it offers the Thinkorswim (TOS) platform, which is considered the most powerful and comprehensive tool for options analysis.

• Best for Professionals & Low Cost: Interactive Brokers (IBKR): IBKR offers the best fill prices and is the only major broker that does not use "payment for order flow." It's also the best choice for international traders. However, its software is notoriously difficult to learn, and customer service is lacking.

• The "Trader-Focused" Brokers (tastytrade, TradeStation, eOption):

  • tastytrade: Built for options sellers but has seen a decline in value since being acquired by a private equity firm and the original founders departed.

  • eOption: A great, low-cost "no-fluff" broker with excellent customer service, ideal for traders who use separate charting software.

  • TradeStation: A new player with an interesting monthly membership fee model for commission-free trading, but its different platforms are still being integrated.

• Robinhood is Built for Phones, Not Complex Trading: While Robinhood is growing fast and adding features like SPX trading, its mobile-first focus makes it difficult to analyze and execute complex options strategies like iron condors. Most serious traders prefer a robust desktop platform.

• Pro-Tip: Your Commissions are Negotiable: Don't accept the default commission rate. Once you have a track record or a decent account size, call your broker and ask for a better rate. They can almost always go lower.

"When you're just starting out, I think people try to pick the perfect broker. It's like, No, don't worry about it... in the first, maybe even 50 trades or 100 trades, we're not even trying to make money... We're just trying to learn the skills."

• (01:52) #1 Broker: Schwab / Thinkorswim: A breakdown of why the Thinkorswim (TOS) platform makes Schwab the top choice, despite its overwhelming initial appearance and the fact that most traders only use 5% of its features.

• (05:13) #2 Broker: Interactive Brokers (IBKR): An overview of the pros (best pricing, no payment for order flow, international access) and cons (difficult software, poor customer service) of IBKR.

• (09:20) The tastytrade Story: The history of tastytrade, its acquisition by a private equity firm, and why the departure of its founders has led to a decline for what was once a top broker for option sellers.

• (13:28) Low-Cost & Niche Brokers (eOption / TradeStation): A look at two smaller brokers: eOption, known for low costs and great service, and TradeStation, which offers a unique monthly membership for commissions.

• (16:53) The Robinhood Factor: A discussion on Robinhood's rise, its mobile-first limitations for serious options trading, and its focus on crypto and tokenization.

Which broker do you use for options, and what's your favorite feature? Let us know in the comments.

If you know someone just starting out and looking for a broker, share this episode with them. Enjoyed this broker breakdown? A 5-star review on Apple Podcasts or Spotify helps us reach and empower more traders.