Options Trading, Short Sales and Derivatives: A Nerdy Guide

NerdWallet's Smart Money Podcast

Explore the risks and rewards of options trading, short selling and margin trading in this nerdy derivatives deep dive.

Hosts Sean Pyles and Andy Rosen explain the concept behind derivatives trading before investing Nerd Sam Taube joins the show for a closer look at the ins and outs of specific types of derivatives. Sam explains the speculative and protective reasons for derivatives trading — and the average retail trader’s chances of finding success.

Sam also delves into put options and call options when it comes to options trading, as well as the relative risks involved with each. He then gets into short sales and the role that shorting plays in the way our financial markets work. The discussion then leads to an examination of margin trading, including what happens when it goes right or wrong for an individual.

In their conversation, the Nerds discuss: derivatives, options trading, short sales, margin trading, the price discovery process of markets, options strategies, risk management, and portfolio diversification.

To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com.

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2023-08-17 34 min

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