Jimmy Carvalho, a lawyer with an executive MBA in business management, is now an investor and, for a decade, has been dedicated to developing profitable strategies, especially in the so-called “options”. He is the guest of the latest episode of MoneyPlay podcast, a program aimed at the world of finance.
The investor tells how the financial market entered his life and opened the doors to options, to the point of giving up the safe life of a public servant. He also explains what they are, how to invest and the advantages of what he calls “the market’s best juice”.
>>> Watch on here the video in full.
Jimmy Carvalho’s first contact with investments was still at school. A teacher said that he earned a lot of money with shares and a colleague commented that he earned shares from his parents as an incentive for the importance of saving money.
Of simple origin, the desire to change his life made him seek information about investments. “I spent two years racking my brain about what would give me more return, so I started trading currency and commodity pairs at 18.”
From entrepreneur to civil servant
At the same time, Carvalho bought a copier in front of the forum in Franca, the city where he was born. He got a subsidized line from the government and ran the business until he sold it at a profit.
Afterwards, he passed a competition at Banco do Brasil. Although he worked at a bank branch, his job as a Corporate Account Manager was unrelated to the bank’s brokerage.
At the age of 20, Carvalho discovered the options market. He he met a man who was reading the same book on investing as he was and asked how it was possible to make money from it. After the conversation, he studied the topic for six months, took out another loan and, at age 21, carried out his first operation with options in 2013.
In 2016, he made a YouTube video about making money from options. “At the time, there was little on the subject and several people came to me looking for information,” he says. As he still worked at the bank and was shy, he didn’t invest in the videos.
When the pandemic came, with the help of his wife, the specialist started recording more videos and his YouTube channel gained visibility. So, he decided to leave the bank. “When I started to grow on the internet, I thought I could turn it into a business, as I already had the security of my investments. So I gave up my steady job.”
He says that the people he worked with were in shock. “Everyone plans to spend their entire lives there,” says Carvalho. For him, a public tender is no guarantee. “Achieving a large level of wealth is much safer than relying on the government or a company. If I get rich, I’m free. It’s more real security.”
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Carvalho ended up becoming a great connoisseur of the options market. Today, he teaches on YouTube and other channels issues such as the difference between stocks and options. “Stocks are pieces of companies and options trade the risk and safety of stocks,” he explains.
According to the expert, options are traded in the same way as stocks: they have a code, anyone can buy or sell and it is not necessary to buy the related stocks. It is even possible to create an option if it does not already exist.
Furthermore, there are several ways to use the investment. “It’s as if there were 50 different ‘games’”, he compares. “You can make money with the market rising, falling, walking sideways, with the passage of time, with inflation, with the change in interest rates, etc. That’s why it demands more dedication.”
One way to trade options is to use them to earn an income on the stock you already have, amplifying the result. The investor claims that, at times, it is possible to achieve up to double the return that would be had with the buy and hold, when you buy a stock and hold it for a long time without trading.
Carvalho says that George Soros and Warren Buffet have options trading to this day and that Michael Burry only trades options. “They are the epitome of the market: every investor you admire will invest. Who earns a lot of money is because he trades options.”
for those who want to start
The expert recommends starting investments in options more conservatively, as it can still be profitable. Also, it is incredibly cheap to operate options. It is possible to set up an operation with only R$1, risking very little to see in practice how it works.
Like any other investment, options also have risks. He says that he once had an operation in which he was making a lot of money. But when he realized the market was falling, he reversed his options. At the end of the day, the market returned to normal and he lost 80% of several months’ profit. “I was in shock and went three months without an operation.”
“You can win a lot, but when you lose, even if it’s less, the pain is greater,” he says. “Today, I operate in mode: to do something wrong I have to work hard. It is forced risk management”, he justifies.
But the specialist’s trajectory has much more positive results. “I’ve already made profits between 4,000% and 5,000% with long options,” he says. And as a digital influencer too. “Today I have more than 2,000 students. We became a big school, bigger than the college where I studied.”
check out on here the other episodes of the program, with economist Ricardo Schweitzer, financial educators Patricia Lages, André Massaro and Mauro Calil, as well as trader and influencer Ricardo Brasil.