Stock options are an asset class that most of us have very little knowledge of, yet derivatives are so significant that they largely contributed to the Great Recession. That alone should be enough to catch your attention.

 

In this episode, I speak with Eric Sunday about the basics of stock options. Eric had been working in a back-office role on Wall Street feeling like a cog in a giant machine, when all of a sudden he realized what he was doing every day at work could be valuable knowledge for his own personal investments. He began to really pay attention and learn from what he was doing and has since applied it out on his own.

 

We touch on:

-what stock options are

-the components of stock options

-what stock options are used for

-how they’re priced and what impacts their value