Buying Call Options Basics + Robinhood Demo in 10mins (Beginner-friendly)

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This video is tailor-made for beginners to explain BUYING CALL OPTIONS (with Robinhood Demos), all in 10 mins. If you just started option trading, this would be the best video to go for. I will walk through what it is, how it works, and give you a demo on both good and bad scenarios, without confusing graphs and maths.
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If you're interested in more option trading tutorials, here are the rest:
► Buy Call: • Buying Call Options Ba...
► Buy Put: • Buying Put Options Bas...
► Sell Call: • Selling Call Options B...
► Sell Put: • Selling Put Options Ba...
0:00 Intro
1:14 What are call option contracts?
3:51 Robinhood demo
6:35 Bull case
8:49 Bear case
11:19 Conclusion
🔴 Subscribe for more useful tutorials just like this: kzbin.info?sub...
Questions? Drop a comment! Cheers mate!
No merch.
No courses.
No Patreon.
Just a practical guide.
Music: Joakim Karud / joakimkarud
#optiontrading #buycall #robinhood

[@catherinechew6512]

Justeen…you are sooo great at explaining the options material. Your design background is huge and, being a visual learner myself, I can grasp the concepts much better. Thank you!!!!

[@Justeen15]

Thank you so much Catherine! Glad that's helpful :) Just to get some quick feedback from you, any particular elements in this video that help you understand buying call the most?

[@RichXXV]

I’ve spent 2 days watching videos on calls and yours is the best I’ve seen. You’re correct in that most other videos don’t explain the 2 ways to profit and you explained it clearly. Liked and subscribed, thanks

[@Justeen15]

Thanks for the kind words! Are there any option trading videos you'd like to see/learn about?

[@manisham9803]

your videos are amazing. more people need to see this. the simple live demos and slides are the biggest help ever

[@Justeen15]

Thank you Manisha! Glad that those helped! There are more option trading videos to check out in my channel, so feel free to poke around! kzbin.info/www/bejne/iWe8e42HlKpol8U If you have other topics you want to see in future videos, let me know too! :)

[@strictbank9865]

Great video man. It’s crazy you don’t have more views!! This was so easy to pick up and simple !!

[@Justeen15]

Thank you! It might take time for the KZbin algorithm to pick it up haha. Glad that you found it and liked it. Recommend it to your friends if you find it useful🙂

[@Theycallmebritish]

That was the best demonstration out of all of the videos. I look forward to Watching more

[@Justeen15]

Thank you! Is there any topic you want me to cover in future videos? I can add that to my recording schedule?

[@jamirjenkins9841]

Thanks I was struggling w the concept of this works but I got it now !

[@Justeen15]

That's great! Thanks for the support! :)

[@garrettwertz1519]

This was the best video I’ve seen on buying and selling calls. Fantastic explanations and examples.

[@Justeen15]

Thank you Garrett! I have deep dive/live demo into option trading in my channel. Check them out if you are interested! :) kzbin.info/www/bejne/bnmroqKqe6anhtk

[@olo290]

Really helpful and thank you for making it simple.

[@Justeen15]

Absolutely my pleasure :) Do you have any other option/stock/investing/personal finance topics you would like to see in future videos?

[@aleusebio7214]

Just liked for that first 5 seconds of comedic relief lol - love it

[@Justeen15]

Haha! Thanks Al! I'll for sure add more jokes and sarcasm in future videos.

[@proterotype]

Great explanation, I appreciate it

[@Justeen15]

Sure thing!

[@ivetoldyouonce]

Very informative. Thank you.

[@Justeen15]

Thank you so much! What in the video do you find the most helpful for you? I will try to incorporate those elements in the future!

[@Vastfill]

Great video man, super helpful presentation

[@Justeen15]

Thank you! Hope it's easy to understand! :)

[@cesarpolanco9024]

Excellent video!!

[@Justeen15]

Thank youuu! :)

[@evanseghers8134]

Great content man, keep it up.

[@Justeen15]

Thank you Evan! Check out other option trading videos in my channel too! :)

[@Chancethecapper]

This dude is so helpful

[@Justeen15]

Thank you! There are more option trading videos in my channel is you are interested in learning more! :)

[@Iamwaytoooldforthis90]

This was a great video man! Full of valuable content! keep it up👍🏼

[@Justeen15]

Thank you! Check out other videos in the channel! :)

[@Iamwaytoooldforthis90]

@@Justeen15 doing it as we speak ! I’ll definitely show support whenever I see one of your videos!

[@Justeen15]

Thank you thank you! :)

[@ashleelong443]

Awesome explanation!

[@Justeen15]

Thank you Ashlee! I just posted a live simulation/demo on buying calls, in which you can see how the call actually work in real time! Check it out: kzbin.info/www/bejne/hqnQo6ewo9aWhNE

[@andrewsorrentino2355]

Amazing!!!

[@Justeen15]

Thanks Andrew! Hope this is helpful! Let me know if you need more clarifications or if there are other topics you want to see in future videos!

[@kayskel5610]

All I can say is thank you

[@Justeen15]

Thank you Kay! Let me know if you have any questions!

[@jcontrera]

Great example!

[@Justeen15]

Thank you! Let me know if you have other questions :)

[@corvettecsu11]

this is amazing how do you only have 4k subs

[@Justeen15]

Thank you Jake! I wish I have more subs 😅 please share it if you find it useful haha! Also if you have any finance/investing topic you want me to cover, feel free to leave me a note here too!

[@rayray2797]

Great video! Thank you for the explanation. If we buy a call and the prices goes up and I decide to sell the call for profit, how do I do that? Do I just sell call for the same strike price before my contract expires?

[@Justeen15]

Thank you! Yea you can just sell the call with the same strike price to close the position. I will upload a live demo video very soon to walk through this exact case. Stay tuned!

[@josezerpa7815]

Thank you! I just watched both of ypur videos this one and the buy puts. You definitely make it simple to understand. I have a question, since I'm a newbie on options and the robinhood platform. The "sell the call/put" option instead of exercising the option appears only when you are in the money? Or do you have to hit "exercise" and then look for it? Thanks for any extra help that you can provide, and great videos by the way.

[@Justeen15]

Hi Jose! If I'm understanding your questions correctly: you have bought a call, say a TSLA call, and you want to sell THAT TSLA call back to other people? If so, after you bought the TSLA call and press the trade button, you should see [sell] and [exercise] as 2 separate choices. They don't happen in any sequence, but 2 different path you can take. You either sell THAT TSLA call back to other people, or you exercise THAT TSLA call. Does that make sense? Or you are asking something else?

[@josezerpa7815]

@Justeen15 thank you!!! That makes perfect sense. That was 100% my question. Great stuff man! I appreciate your help very much.

[@Justeen15]

​@@josezerpa7815 Great to hear! If you have more questions, feel free to check out my other finance videos or shoot me an email at justeenvlogger at gmail :) Cheers!

[@Justeen15]

Buying call options is not so complicated, isn't? Let me know what you think!

[@akeenearchibald3575]

you made this sound wayy to easy

[@Justeen15]

It gets pretty easy when u really understand what it is and gets a bit of practice. The finance world has the tendencies to complicate things and I want to break that relationship. Do u still find it difficult after watching it? I can help clarify if u have any questions?

[@pro-gamer7391]

I don't see "trade *stock name* Options" under where it says buying power. Is there something I am missing?

[@Justeen15]

Hi there! I can think of a few reasons: 1. That stock does not have options (e.g. FNGU does not have options) 2. You are not approved for option trading. You would need to apply for approval in your profile on Robinhood 3. The stock is newly listed. It will take maybe 2 weeks for the options to show up.

[@ericthornburg4250]

7:52 if you choose to sell the contract, are you exposed to unlimited losses should the stock continue to rise?

[@Justeen15]

Hello there! You bought a call, and if you sell that call contract, then you give up "unlimited gain" if the stock keeps going up. Is that what you are asking?

[@Jonathancowden1]

Thanks man. I finally fuckin get it.

[@Justeen15]

Great to hear, Joe! That’s all I hoped :) let me know if you have other questions!

[@danielvecchio4601]

can I sell a call on same expiration day? Lets say you purchase a BUY CALL on Monday and you want to sell it on Friday which is expiration day, assuming price is above strikeprice is this possible?

[@Justeen15]

Yes you can. You can sell it before the market closes. In your example, when the stock price is above strike price, the call you bought on Monday probably made some money already? Then yeah you can still sell THAT call on Friday to keep the profit as long as you do it before the market closes.

[@Inner_Strength_Chronicles]

if sell the contract successfully I bought who will be responsible for if next buyer will decide to exercise the contract who will be responsible for delivery?

[@Justeen15]

If you bought an AAPL call, and you sell it back, you are in the clear. Nothing will affect you because you don't have an open position anymore. I think this answers your question. If you only sell an AAPL call (you didn't buy it before), then that buyer can exercise on you, because you have an open position there. Does that help?

[@janewright315]

So wait though... if the stock goes down and you exercise the call anyway, yes it drops for now, but you still have the stock don't you? Which would eventually go up, potentially recouping your smaller losses....?

[@Justeen15]

Hi yes that’s correct! If you have the money to buy 100 shares through exercise and you believe it will recover then yeah, you may recoup losses!

[@David-oq1nk]

Hey there! Awesome video. Im seeing call options on Robinhood right now that are below the strike price and curious about that strategy. IE) ATER is currently 5.53. you can buy a 1 dollar call for $4.45 (So together that's 5.45/share and the current value is higher at 5.53). Granted its only a few cents/share, but isn't this instant profit? Why wouldn't someone just do that repeatedly and keep taking small gains?

[@Justeen15]

Hi David! Thanks for the comment. This looks like an instant profit but it's not. You see that on Robinhood for a few reasons: 1. The bid and ask spread for that option price is pretty wide, so the middle price is $1 2. The trading volume is very low on that so it sits at $1 In either scenario, you a very unlikely to get that option filled (your buy won't go through). If it goes through, it's probably the price of the stock changes that leads to movement in option price, which means your 5.45 vs 5.53 won't be valid anymore. If you find any options that have lots of trading volume, this won't happen because of extrinsic value is always making it a bad deal when you try to buy a call. I went through it more thoroughly in this video: kzbin.info/www/bejne/eWjalmRqarVgnNk Does that help? :D

[@David-oq1nk]

@@Justeen15 You rock! Thanks so much for the response and I look forward to watching this next one and other videos. I think I need to just execute one myself - or watch an actual example of one being executed in a real life situation - so I can see how the spread works... delays in execution... strike price... etc

[@Justeen15]

@@David-oq1nk Yeah testing it would help. I actually made 4 live demo videos that you can check out. Not with Robinhood but the idea is the same. I ran through all common scenarios: kzbin.info/aero/PLNgWNg4wjoKuxTOnelHdPZ51dyfWoMo7K

[@Justeen15]

@@David-oq1nk Hi David! Maybe this strike price picking video will help: kzbin.info/www/bejne/nWKmco2Fm7SKj7M Take a look and let me know what you think!

[@yungify2867]

What if I don’t have the money to buy 100 can I just buy 50 of the shares or it has to be 100

[@Justeen15]

Unfortunately (most) options exercise in the unit of 100, so you cannot do 50. If u don’t have enough money to buy 100 shares, and you can just close out the call by selling it.

[@huntermihailoff4470]

Who buys the contract when you try to sell? What if it isn’t purchased

[@Justeen15]

If you are trying to sell a call for example, then generally speaking for high volume traded stocks, there will be someone buying the call from you. To get more granular, you can look at the bid and ask, in the option details. If there is someone bidding (even if it's just 1 person), that means someone wants to buy a call. If you want to sell one, then you sell it to him/her. I personally have not encountered a case that no one wants to buy. It could still happen, for example, the option trading volume is low (literally no one is trading options on this stock), or the price is not matched (buyer only wants to pay $100, but you want to sell for $200). Does that make sense?

[@Prosper_Pun]

Hey @Justeen15 thank man liked and sub. Buying is the easy part, closing is the confusing part. Do we have to sell on expiration date or do we have to sell early? As soon as we profit sell it? Can you do a time elapsed and actually show what you did nearing expiration date? Exercising, sell close to take profit. I dont see anyone doing it on YT. Im really new and just want to grasp the concept before executing. I dont see any broker that let up use fake money to practice either. Much appreciated

[@Justeen15]

Thank you! To answer your question: - You can close it anytime after you buy it (but before expiration day) - A time lapse is an interesting idea. Let me think about it :) - You can get a brokerage account from TD Ameritrade and there is an "On demand" function, where you can place trades with fake money in a point in time in the past, so you can try/simulate/back test your strategy to see how it performs during a bad market off or a huge run-up. Hope that helps!

[@Justeen15]

Hey! I made a follow-up video for you. Going live on Sunday! kzbin.info/www/bejne/hqnQo6ewo9aWhNE

[@chrissypaynecormier3580]

How do you sell call option contracts

[@Justeen15]

Hi Chrissy! I actually made 2 videos on selling call option contracts! Feel free to check them out in my channel: kzbin.info/aero/PLNgWNg4wjoKsOMW2TwSKulMb2lOGRcQBZ Essentially, you would need to have 100 shares of that stock first, and then you can sell a call option of that stock to other people. By doing so, you receive the premium (how much ever you sold it for) upfront, and you can use that money right away. I recommend checking those videos out because they will walk you through more thoroughly the pros and cons/benefits and risks on selling call option contracts. Hope that helps! Thanks! Let me know if you have more questions!

[@chrissypaynecormier3580]

I guess I need clarification. At 8:36 in your video you go through the options of what to do if your contract ends and the shares go up. I. This example would i need to spend 12000 on 100 shares to sell them? I thought i could sell the contract and make a profit. That’s what’s i was asking

[@Justeen15]

There are 2 outcomes for call option buyers, if you buy a call, then: 1. You exercise the call contract, spend money to buy 100 shares, and then sell 100 shares 2. You can just sell the call contract back to the market to close the position So u don’t have to exercise it. Is that the question?

[@chrissypaynecormier3580]

Yep you answered it. Do you have a video that shows you how to do #2

[@Justeen15]

@@chrissypaynecormier3580 Yea have you checked out the ones in this playlist? kzbin.info/aero/PLNgWNg4wjoKvlPiYwJTVnRlyLUTHkWLgU Or it’s your question more on how to do it on Robinhood? Like which button to press to sell the call (to close the position)?

[@demetriusgreen3670]

Ok but you didn’t explain how to sell to someone else . Please explain

[@Justeen15]

So this video is about BUYING calls. There is another videos on how to sell to someone else. I also responded to you on the SELL call video too. But basically if u use Robinhood, you just need to have 100 shares of a stock, switch to the SELL CALL interface on the platform, and you click “SELL”