The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

#156 - Trader vs. Investor - What's The Difference?

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Synopsis

Hey everyone, this is Kirk here again at optionalpha.com and in today's daily call, we are going to be talking about the differences between traders and investors and really, just trying to figure out what is the difference because the term gets used interchangeably. I know that I mistakenly use the term interchangeably. It’s just very easy to say you’re an investor or you’re a trader. People think it’s the same thing. But there is a difference or I think there’s a difference in how I think about investing versus trading or how I think about this in the context of options trading versus other investing that I do. In my opinion, I think a trader is someone who exploits market pricing or market variable differences. They’re always looking to turn or roll positions over at an increasing pace, that basically, it’s a numbers game, it’s a quantity game, that you're taking advantage of some pricing differential in the market. In the case of option selling, we’re taking advantage of the implied volatility premium tha