In this week's Stansberry Investor Hour, Dan and Corey welcome Jeff Clark to the show. Jeff is the editor of Jeff Clark Trader, a newsletter focused on options trading. Using his decades' worth of experience, Jeff helps his subscribers profit from options regardless of the market environment.

Jeff kicks things off by stating how options trading can be a great way to invest. He says if you're responsible, you can reduce your risk and improve your upside in a trade. He then dissects a core rule of trading: maintaining discipline. Knowing how much capital you're willing to risk in a trade is the first step. Jeff says a common mistake folks make is putting all their money in without proper risk assessment. On the other hand, he warns that handling winners is equally important. Knowing when to take money out of winning trades can help you preserve your gains...

As you're making money – and sometimes it's life-changing gains that you can make in the market... you have to pull some back to secure your new step up in the monetary world, if you will. It's kind of like Who Wants to Be a Millionaire. You get to a certain level, and if you keep going on, they guarantee you can't fall back below this. So you get some money off of it and take some of the pressure off. That's what taking money out of the market allows you to do.

Next, Jeff shares some of his personal rules and strategies. He provides two consistent rules that he uses in his trades. However, he also acknowledges that the market is constantly fluctuating and explains his strategies in a few different market scenarios. Jeff follows up by detailing how much money he's willing to risk in certain trades based on his portfolio. When the topic of AI is brought up, Jeff says that while it's great in analyzing data in the long term, he believes it can't predict how investors can react in the short term...

The great thing about the AI stuff and the technology and putting all this stuff into it, [is that] it does leverage your time a little bit better. But the one thing that can't ever be replaced – and I don't think AI will ever catch on to this – is [that it] can't gauge human emotions. The stock market on a short-term basis is a function of emotions... All of these things tend to happen [during a panic] and people freeze up. And I do that, too. The difference is I've been doing this long enough that I recognize that I'm freezing up. And so the mind kicks in and says, "OK, this is the time you have to override the emotions." And that's what allows me to take on a larger position.

Finally, Jeff emphasizes how investors won't know when a stock has peaked and when it has bottomed until long after the moment has passed. As a result, he warns against bottom fishing and thinking you're getting a good deal on a stock, because it just might keep sliding down. Additionally, he thinks that investors should be responsible with their money, especially the older they get. Making risky plays with retirement money is never a wise decision. Jeff then wraps things up by showing how to earn income by selling uncovered puts...

All you're doing [by selling uncovered puts] is you're basically agreeing to buy a stock that you want to own anyway at the price you're willing to pay, and you're getting paid to make that commitment. That's like going into a store at Christmastime and you notice that a sweater is on sale for maybe 100 bucks. And you go to the cashier and you say, "Look, if this thing ever goes on sale for 90 bucks, I'm willing to buy it." And the cashier goes into the cash register and takes out five bucks and hands it to you, and you walk away. And then if it does go on sale for $90, you go back to [the store], you buy it for 90. And if it doesn't go on sale for $90, you got your five bucks, and you can maybe make that same deal again.

Click on the image below to watch the video interview with Jeff right now. For the audio version, click "Listen" above.

(Additional past episodes are located here.)

The transcript is coming soon.

This Week's Guest

Jeff Clark is the editor at Jeff Clark Trader, an options-focused newsletter. Using the same strategy he used for his clients – about 100 of California's wealthiest individuals – Jeff shares the techniques he learned exclusively with his loyal subscribers. Jeff began writing newsletters after retiring from his independent, San Francisco-based brokerage house and private money-management firm at the age of 42. Before that, he developed the curricula for an international Master of Business Administration program and founded an investor-education firm.

Jeff has previously edited two successful trading letters for Stansberry Research, The Short Report and Pro Trader, for more than 15 years. Since 2005, his subscribers have had the opportunity to make triple-digit gains more than 50 times and double-digit gains more than 160 times.