35 minutes | Sep 21, 2021

How Matt Is Replacing His Income By Trading Stock Options - 110

Allen: All right, everybody. Welcome to another edition of the Option Genius Podcast today I have with me, Matthew D'Ambrosi .He's one of our passive traders. And he's gonna be telling us how he got started and how he's doing pretty well right now. How are you doing, Matthew? Matt: I'm doing well. Thanks for having me on. Allen: Cool. Cool. So how'd you get started with Option Genius?  Matt: Well, I have to actually go back, it's been quite a journey, I have to say, you know, it's more like a 15 year journey for me. Allen: Wow. You know, I was given a book by my sister at age 30. And I was a young guy, and I was just more not interested in reading books just kind of floating through life, didn't really have much direction. And the book was called "Automatic Millionaire" by David Bach. Allen: Okay. Matt: In that book, I wasn't really interested in reading it, but she handed it to me. So I said, at least go through it. And I started thumbing through and I came upon a compound interest chart. And it showed, you know, you're 19 years old, and you put $2,000 into an IRA, or Roth IRA, and you did that, and you continue to do that, it would be well over a million by the time you're 65. So I was caught immediately by that. And that's kind of where my journey began. So I took that information, and started reading more books. And I came across Dave Ramsey. He's kind of like a financial soldier, if you will, you know, to get out of debt. Yeah, kind of get your stuff together. And I started, I always thought about making money and you know, retiring early, it was always a thought of mine, it was a gold mine, it was definitely what I wanted to do. And I always felt like 65 is when I would do it just like everybody else. And I continue to read more, I read numerous articles and books. And about two years ago, I went to a workshop, and I was learning how to invest. And they introduced me to options and selling options. And I was told that everyone else was told, you know, it was risky. Don't touch it. There's a whole another world to me. Allen: Have you done any stocks or options before that? Matt: No, absolutely not. Allen: No stocks either? Matt: Not really, you know, I was more into mutual funds, I had gave my money to an advisor, I just believe that people had your best interest. And they're great advisors out there. I'm not saying they're not. But it really started me to take a hard look about how money is handled. And you're much better off if you take the plunge and believe in yourself and start looking into deeper and see that they can really work out for you if you're willing to take or have the interest really to go and look at that. So I started paper trading. And then I was wondering who else does this so I started searching. And then I came across your name, and I have to hand it to your master marketer. I've never had anyone hit my inbox like you. So I started listening to all your podcast, taking little by little, you know, all the information that you give out there and started little by little paper trading. And then I started making money slowly, you know, doing one contract, then adding two. And then now I'm pretty much on my goal to replace my income. And that's my ultimate goal so... Allen: Awesome. Matt: Just a regular guy, you know, I just kind of happy to be here. I'm really happy to be here today. Because I want to get the message out that you know, you're teaching just normal people like me, who have no experience at this. And it's really a wonderful thing if you're willing to get a hold of your fears and take a stab at it. Allen: Right. So you started about two years ago, you said? Matt: Yeah, about two years ago yeah. Allen: Oh two years ago. Okay. And you're still working? Matt: I am, yep. Allen: Okay, what do you do during the day? Matt: So I'm a forklift driver and it's tough work. It's very laborsome. And trading has allowed me to look at money in a different way. I just don't look at money as scarce as it was. So it's a whole different mindset. Allen: Yeah. So how do you find time during the day to trade? Matt: Generally I don't go until about 2:30 in the afternoon, and I go on to 2:30 at work so I spend the mornings pretty much studying and paper trading and learning and then even after work at 11 o'clock, sometimes I'll be up till 1am or so learning as well and paper trading and trying to think about things and whatnot so.. Allen: So you're all in? Matt: All in, absolutely. They say burn the ships and I burnt them. Allen: So what was your first trade? Matt: First trade I did was credit spread. I did far away from the money for about just one contract and I made like 18 bucks. It wasn't much but you know, you're, you talked about the options continuum. That was in that stage where I was very nervous and you know, you have these feelings and you feel like you're gonna lose all your money. And that's not true, if you study and really take what you have to teach, and I took it very slow and got into it. So after that, after you do, there's something about to do first live trade, it kind of clicks with you like, okay, that wasn't so bad, you know, not the think of the worst that can happen. So, yeah, I did it. And it's been a, you know, I'm gaining confidence each and every week. And, yeah, we just continue to evolve on that continuum. Allen: Cool. So if I can recap. So basically, you want to get into investing because you didn't like where it was going. And you didn't want to wait around till 65 to, you know, have a nest egg and retire and have somebody else in charge of your money. So you started looking at it for yourself, and you've been putting in time you've been studying, researching trading, paper trading? What else is it that you want to achieve, besides just the money aspect? Like what what is it about the trading that is, you know, speaks to you on a deeper level? Matt: Yeah, I think the main part and it's different for everybody, for me, it's actually you know, as you get older, you realize you don't know how much time you have on this earth. And, you know, you start looking at things like, Hey, you know, the time is right now. And if I can find a way to free up some time, I'm going to seize it, because I never want to look back and say, "Hey, you know, I got to 65" I'd be glad if I do. But to spend time with friends and family, I got, you know, parents are almost in their 80s, I would love to just free up just a little bit of time and already am and I'm already you know, I already feel successful. And that, you know, I found something that I can do and free some time up and actually see them. Allen: Okay. So when you say you feel successful, what does that mean in numbers? Matt: Numbers to me, it's like just even $500. And it's different for everybody. There's no doubt. I mean, $500 extra dollars a month is successful to me. It gives you just a little bit of breathing room. I'm a simple person, I don't need a lot. I drive a 2200 accord. I mean, it looks like it's gonna fall off the road. I'm not a man to really, you know, I love great things. I would love to get in a nice, wonderful car, but it's not the main driver for me. The main drivers just to spend quality time family and friends. Absolutely. Allen: Nice. Nice. Okay. So would you mind sharing how large your trading account is now? Matt: Yeah, I started with in the brokerage account, I started about 2 Grand, and I'm already up to about 16 right now. Allen: Wow, in two years? Yeah, that's phenomenal. Matt: Yeah, I mean, I'm also adding to it too, but.. Allen: Okay. Matt: It's amazing to see the compound interest grow. And I haven't been really calculating it like dollar for dollar. But I'm just more really tuned into just being successful and working through the trades. And not really focusing so much on, you know, $1 amount just being, "Hey, let me get this tray. Let me monitor it. Let me look at it. Let me learn from it". If I have any problems, if I look at it as a learning experience, I have to continue to go I want to be in it forever. You know, I want to continue to I want to be that guy standing, you know, 10 years, 15 years from now and still doing this. Allen: Okay, so you don't want to be a forklift driver anymore? Matt: No, I say, you know, I'm sure there are a lot of people who listen to podcast saying I hate my job. I do not I actually enjoy driving a forklift. I just don't want to drive 40 hours a week. Allen: Okay. Okay, so what type of strategies are you using? Matt: So right now I'm doing a lot of bull put spreads, I've ventured into bear call spreads. I'm also doing covered calls. I haven't done any naked puts yet. So I'm really kind of looking at some companies and, uh, you know, I want to know more about the companies and look at stable companies like you teach us and start doing options off of them. So, it's an ongoing process and what amazes me that you don't need to do a lot of different strategies to be successful. Allen: Right, right. Right. Okay. What's your if you had to only pick one, which was your favorite? Matt: At the moment, it'd be a bull put spread, but I have a feeling that's gonna change. Allen: Yeah depending on the market. Matt: Also venturing into into oil, like you're teaching in your program. Allen: Cool. Yeah. Welcome to that program. Yeah, it's definitely it's definitely the next level of stuff. You know, it moves faster, and it's more leverage. So the numbers are bigger. Matt: Yeah. Allen: Cool. So have you tried anything else that didn't work? Matt: You know, I've done about 60 trades so far. I've lost one. And I got out early, it would have worked out. And it was my first time losing money, but I look at as a big lesson. You know, there's a lot of feelings. I listened to one of your podcasts where you talked about how you lost and the feelings that surround that. Right. I think you have to kind of reevaluate and find the lesson in it. And the lesson I found in that trade was that I was trading too heavy. I was a little bit. I was actually doing too many contracts. I was a little bit too uncomfortable. Matt: So that it was is a really good learning experience to say, Hey, you know, I'm not really comfortable risk
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