Buying Options vs. Selling Options (Risk/Reward, Probabilities & More)

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projectfinance

projectfinance

Күн бұрын

Пікірлер: 305
@projectfinance
@projectfinance Жыл бұрын
✅ New to options trading? Master the essential options trading concepts with the FREE Options Trading for Beginners PDF and email course: geni.us/options-trading-pdf
@mobiusgrey9522
@mobiusgrey9522 2 жыл бұрын
Teaching well is being able to explain a complex subject in a clear and easy to understand manner for someone who has zero experience in the subject. This video absolutely nailed it 👍
@vkollur
@vkollur 4 жыл бұрын
I have made at least 3 attempts to learn options in the last 3 to 4 years. Always found it confusing and always gave up. Set a goal 3 weeks ago to get out of this COVID 19 quarantine with working knowledge and understanding of Options trading. I found your channel yesterday and have a learnt and understood a great deal lot more than ever just in one day. I have lot more to learn and will be using your videos. The quality of your explanation of the concepts is extraordinary. Thank you for making this interesting for me.
@ne9835
@ne9835 4 жыл бұрын
Me too man!!
@xlmz9433
@xlmz9433 4 жыл бұрын
the knowledge is mindblowing.
@sameerkdv
@sameerkdv 3 жыл бұрын
Same here Simply fantastic
@mikedok1
@mikedok1 3 жыл бұрын
@@martinthatsall1518 I found it a little fast paced as well, when I started. But when I started taking notes, and pausing the video, I understood it a lot clearly. He explains it, with a slower, and steadier pace, in later videos. His options trading for beginners video is almost 3 hrs long, but hands down, his best video. And it’s slow and steady.
@andysingh5478
@andysingh5478 3 жыл бұрын
Great explanation
@kangokidkidd4037
@kangokidkidd4037 2 жыл бұрын
Please so if the trade is going in your favor do you let it expire in your favor or if you don't close it will you still loose the profits...
@projectfinance
@projectfinance 2 жыл бұрын
You can close it for a profit or you can let it expire, which will still result in the profit. However, if you allow an ITM option to expire then you will end up with a stock position, which may be unwanted. I would recommend closing options before expiration.
@DNUTZ4U
@DNUTZ4U 4 жыл бұрын
Sooo, if I buy a CALL option at $2.75 a share at a strike price of $38.50 with an expiration date in 9 days and the price per share jumps to $43.00 on the 7th day for example....I can’t jst sell that bundle of 100 for the profit that was made and close it out completely?? I don’t get how you want the share price to go up within that expiration time but then you want it to go down to sell it? I’m clearly very lost.
@projectfinance
@projectfinance 4 жыл бұрын
At $43, the 38.50 call option will be worth $4.50 at least. You don't need to exercise the call. You can simply sell the call for $4.50 and realize your gain. The misunderstanding here is that when I say "selling options," I am referring to shorting options, which is selling an option you don't own. The goal is to sell/short the option and buy it back/close it at a lower price, just like shorting stocks. You are thinking of selling options as in closing an option you've purchased (selling the option as a closing trade, not an opening trade). If you buy an option for $2.75, if you sell that option at a later date you'll be closing the position in the option you purchased. If you sell an option for $2.75 without owning it (selling the option as an opening trade), your goal is to buy it back (close it) at a lower price. If you sell/short an option for $2.75 and buy it back for $2.00, you'll make $75 per contract in that trade. Said another way: when you buy an option, you want the option price to increase so you can sell it for a higher price. When you short an option (you sell an option you don't own), you want the option price to decrease so you can buy it back for a lower price. I hope this helps clear up some confusion.
@DNUTZ4U
@DNUTZ4U 4 жыл бұрын
projectoption so if you want to just buy a call you should “buy open” and then after you meet the premium and gain say $1.10 over that, you would want to “sell closed” to wash your hands with it per say? I definitely don’t catch on to things as quick as others so I apologize. I appreciate the time you’re taking to reply back though.
@philgiffney
@philgiffney 3 жыл бұрын
Great video! How do you talk for so long without blinking😳
@timothymilord
@timothymilord 3 жыл бұрын
Hilarious 😭
@seymoresmithh8908
@seymoresmithh8908 3 жыл бұрын
Editing.
@bIacktide
@bIacktide 3 жыл бұрын
He blinks at 5:00.
@420BLUNTLEY
@420BLUNTLEY 3 жыл бұрын
He blinks when you do
@chadwintrey666
@chadwintrey666 3 жыл бұрын
Man I couldn’t even focus after reading your comment haha
@diverdown81
@diverdown81 5 жыл бұрын
Selling a naked option is like bunting with no infield...there is a damn good chance you are going to get a single. You won't get a homerun...but you are on base most of the time. However, if you're stupid you are OUT!
@projectfinance
@projectfinance 5 жыл бұрын
I love this! 😂
@Tonyrg1988
@Tonyrg1988 4 жыл бұрын
selling a naked option is like going outside naked all the time eventually theres going to be a blizzard
@titaniumsandwedge
@titaniumsandwedge 3 жыл бұрын
@@Tonyrg1988 It is true that every now and then a naked option seller will run into a blizzard. But if you play it right, profits will exceed losses.
@hardware4200
@hardware4200 5 жыл бұрын
Very nicely done. The one thing you missed when comparing selling vs buying options is the idea of adjusting and selling more time for a position to move in your favor. This is a key concept, since long options don't have this capability. Personally it tilts the options game in favor of the seller. Regardless very nice video. Thank you.
@diekkrid1207
@diekkrid1207 3 жыл бұрын
So, the explanation is well read, but if you're a beginner, this isn't the video for you. This is a white paper video and not an guide to what the different terms mean and how the math actually works out.
@markbranscome2998
@markbranscome2998 3 жыл бұрын
I've got a simple question, but I just cant wrap my head around it! I'll tell you what I did and I can't figure out what to do at this point. Zynga stock. Not highly volatile. Bought a PUT with $12 strike when it was at $10.37. Currently it is trading at $9.97. My Position shows -$54.00. What does that even mean? And The option expires on March 19th. Can you help me understand what I should do?
@vivekr2056
@vivekr2056 3 жыл бұрын
THANK YOU SO MUCH I learned lot from your video thank you...................................................................................................
@jerrynix5206
@jerrynix5206 5 жыл бұрын
Ok off subject but is that a Pulp Fiction picture of Travolta back there, I've been trying to figure that one out for awhile now lol.
@projectfinance
@projectfinance 5 жыл бұрын
Yes! Don't forget about Sam Jackson! It's a Pulp Fiction piece by Banksy: en.wikipedia.org/wiki/Pulp_Fiction_(Banksy)
@cronos987
@cronos987 4 жыл бұрын
Great video! Could you please make a video about the expected movement of a stock base on its volatility at expiración thanks
@funsuman8252
@funsuman8252 4 жыл бұрын
The fact that he doesn't blink bothers me a little. 😬
@abhilashachuthan7526
@abhilashachuthan7526 4 жыл бұрын
6.23 he blinks
@Gmoneyluv4u
@Gmoneyluv4u 4 жыл бұрын
I know right LOL!!!! Info is incomparable
@frankmanson3
@frankmanson3 4 жыл бұрын
Hahaha, I was thinking the same thing when he didnt blink for a few minutes
@alibenitez6203
@alibenitez6203 4 жыл бұрын
🤣
@arupian666
@arupian666 4 жыл бұрын
Why did I read this ? Now I can't NOT notice it. I swear I blink EXTRA now, watching this.
@jjsiegal1
@jjsiegal1 3 жыл бұрын
Good Video....thanks QUESTION: *Why would you "sell a Call vs Buy a Put ???"*
@seymoresmithh8908
@seymoresmithh8908 3 жыл бұрын
Both are bearish positions, but what if the stock doesn’t go down as you hoped or not down as much as you hoped and remains out of the money? That put position would expire worthless which favors the option seller.
@jjsiegal1
@jjsiegal1 3 жыл бұрын
@@seymoresmithh8908 Your saying 'the option seller' can cut his loses ?'
@seymoresmithh8908
@seymoresmithh8908 3 жыл бұрын
@@jjsiegal1 - Yes an option seller can close the position early by buying back the option. But in the scenario I presented it may not be a loss for the seller. Even if the stock moves up but never hits the strike then that option will expire worthless meaning you, as the seller, get to keep all the premium. The only way the seller can lose money is if the the stock moves up pass the strike. Whereas there are more scenarios where the put option buyer can lose money (stock goes up, stock trades sideways, stock goes only a little down or a gradual down over the life of the contract but never hits strike, and/or volatility drops a lot).
@GizmoGuy620
@GizmoGuy620 3 жыл бұрын
Question: What happens to options calls/puts, buys / sells in the middle of a stock split?
@szhang2097
@szhang2097 5 жыл бұрын
I wish you could elaborate a bit more on the buy versus sell of PUT options.
@projectfinance
@projectfinance 5 жыл бұрын
Sorry for not going a bit deeper on that subject!
@49metal
@49metal 3 жыл бұрын
If only someone invented a way to sell call options. It would be, like, totally amazing.
@donnelljunior4198
@donnelljunior4198 4 жыл бұрын
For this example, why aren't you selling the call? Why are you selling a put??
@norlanzeledon2421
@norlanzeledon2421 4 жыл бұрын
Fr
@vishalbhardwaj8629
@vishalbhardwaj8629 5 жыл бұрын
Excellent Explanation. Most Easy to understand Video on KZbin for Options. I was so confused for ITM Buy vs Sell and with this 20 min Video, I understood everything.. Thank you So much. Great Work. Keep it up!!
@projectfinance
@projectfinance 5 жыл бұрын
Thank you, Vishal! I'm glad the video was helpful.
@rashmipatel4602
@rashmipatel4602 4 жыл бұрын
I found your videos very helpful in learning -- thank you
@ericspecht2
@ericspecht2 4 жыл бұрын
Always explain things so easily 🙌🏼 I learn a lot from your videos
@wrapitup46
@wrapitup46 4 жыл бұрын
Great video. That cleared up so many questions I had been trying to figure out. Thank you!
@daxshell242
@daxshell242 3 жыл бұрын
i mean... doesnt this mean that as long as you have a company that is relatively reliable and wont go bankrupt, you could buy 100 shares and just keep selling options on it?
@rafaelschulz6264
@rafaelschulz6264 3 жыл бұрын
Where can I save my crypto money.
@richardadams974
@richardadams974 3 жыл бұрын
The covered call explained please?
@eculpepper6546
@eculpepper6546 3 жыл бұрын
Great video, you are a very clear teacher, I need to learn more about tastyworks.
@larryhamilton5076
@larryhamilton5076 5 жыл бұрын
I fell for the argument that purchased options have a lower probability of being profitable at expiration. I've even heard it said that 80% of options expire worthless and that is the principle reason for selling options instead. What is not being said is that buyers of options are not keying in on intrinsic value for profit...buying options is a play for extrinsic value change and therefore you are not typically going to hold those options to expiration....you are going to take profit during a market move and then get out. So probability really not a realistic consideration when buying options. When you sell options, the margin is so heavy that you see your buying power typically drop to 1/2 to 1/3 of what is actually in your account and when the market moves against you...you can forced out by the heavy margin....also you can't get out for the option's intrinsic value...you have to buy them back at current market which, due to volatility, 2-3 times what you sold them for. I have been selling options two years now and have seen my account diminish due to huge losses. I am now exploring buying options...the advantages over selling options seem considerable.
@tray2nice846
@tray2nice846 4 жыл бұрын
Very good. However, you do not discuss or consider the effect of good research on probability. I.E. If options are bought at a time where analysis has determined there is a high probability of adequate price rise this makes the probability of gain much higher. I guess that is for another video, but is worthy of mention because this is the factor that makes buying naked calls profitable.
@danielwayne2055
@danielwayne2055 Жыл бұрын
if I bought a stock at $10. Then chose to sell the option at $10.25 for $1, if I didn't care about keeping the stock, would that be an ok choice since I am basically making $1.25 per share in 30 days. ( as long as I am happy with the 10 ish %. gain in that short of a time. Am I doing the math correctly there?
@kangokidkidd4037
@kangokidkidd4037 2 жыл бұрын
What i don't get is how is this buying a call 29 days out..the first example the stock is already over the call option of 355...it's at 358 so would this not be buying a put and not a call...I'm confused anyone please brake it down
@mehdighadrdoust2577
@mehdighadrdoust2577 3 жыл бұрын
Guys Plz help. So If I buy a call option at a strike price of $3 and also sell a call option at a strike price of $4. Can I exercise my call option and buy 100 shares for $300 and then sell it for 400, because I have the short option at 4 dollar strike price?
@samapples9476
@samapples9476 3 жыл бұрын
thanks man i was getting very confused watching everyone else try and explain this concept 🙏
@bryantcaminero9899
@bryantcaminero9899 3 жыл бұрын
If selling options has more risk and less reward as opposed to buying options (less risk, more reward) why is selling options even a choice. Why would anyone select to sell options? I'm having a hard time understanding. In order to make money Is selling options meant for "assuming the stock price would move too far up or too far down within a given time period"?
@soggdogg
@soggdogg 3 жыл бұрын
God I am stupid. Am having a hard time grasping this info. Is there a website where you can play with the stock market with play money? So I can learn how to do this without the risk of losing?
@mikesperience
@mikesperience 3 жыл бұрын
I didn’t understand put risk/reward since put is betting against the price going up and if it goes to zero then why there’s loss of 34k.. apologies I’m new to options… is that selling a put ??
@beckmanel
@beckmanel 5 жыл бұрын
nicely done. But, no offence, are you an alien, you never blink!?
@projectfinance
@projectfinance 5 жыл бұрын
Much Respect haha none taken! I’ve fixed that and started blinking in recent videos. I don’t know what happened, it could be the bright light that’s in my eyes, but I didn’t blink during a lot of takes in these earlier videos! Thanks for the comment. I’m glad the video was helpful.
@The1TheyAskAbout
@The1TheyAskAbout 4 жыл бұрын
Thank you for the info and breaking everything down. I was confused on the selling options part of it, now I'm okay... Thanks again.
@jayrodathome
@jayrodathome 3 жыл бұрын
Nothing can alleviate my confusion.
@ericsadforcanada8160
@ericsadforcanada8160 2 жыл бұрын
thank you for the video. just a suggestion, if you could put more graphic content instead showing your face reading it could be much less distracting.
@VedicKnight
@VedicKnight 4 жыл бұрын
I am still trying to figure out implied volitity
@projectfinance
@projectfinance 4 жыл бұрын
Please check out my video explanation of Implied Volatility: kzbin.info/www/bejne/fl6xeY2nYtiefNE
@EllieVogelEllieVogel
@EllieVogelEllieVogel 3 жыл бұрын
Thanks for your thorough explanation and the graphics that explain the relationship between stock and option prices. This comparison of risk and rewards for calls vs puts finally brings clarity of when to do one vs the other. I love that you are not concerned with the theory or jargon but how it can be deployed for us newbies. Chris - you have put so much effort on your videos, I wan to thank you very much for all you have done. Do you have any where the sequence of videos recommended to grasp a good understanding of this field? I have been watching a few here and there but want to make sure to follow a comprehensive plan. Again, thanks for everything! Great job!
@mubarak3457
@mubarak3457 Жыл бұрын
It’s only when u sell dividends stocks that u get assigned??? Correct me if m wrong !
@VedicKnight
@VedicKnight 4 жыл бұрын
I am still trying to figure out implied volitity
@projectfinance
@projectfinance 4 жыл бұрын
Please check out my video explanation of Implied Volatility: kzbin.info/www/bejne/fl6xeY2nYtiefNE
@ehex3
@ehex3 Жыл бұрын
Why complicate your explanation by not rounding up the numbers. Absurd
@texaspickr
@texaspickr 3 жыл бұрын
Chris I have a long call option. I was in the money. Should I have sold then with more extrensic value to go, over a month. now I am out of the money again, but still have a month to go. Should I sell now or wait and see?
@FLOODOFSINS
@FLOODOFSINS 3 жыл бұрын
Investor and KZbinr shasha endakov says the most people do puts or put spread. So I don't know who to believe.
@keatonlitzenberg1762
@keatonlitzenberg1762 3 жыл бұрын
I love selling options but I will strictly only do covered calls or cash secured puts. as for buying options it has been one of the best moves I’ve ever made in trading
@tinglegoblin3028
@tinglegoblin3028 3 жыл бұрын
Thank you. I started trading options recently and this helped with a question i had about buying puts.
@koserene5370
@koserene5370 4 жыл бұрын
After going through your Buying Options versus Selling Options, am i right to say that it is logical to buy an option when the stock price is rocketing.
@h7opolo
@h7opolo 5 жыл бұрын
Potential/risk is different than likelihood. You can make more money with buying options. but you're more likely to make money selling premium. This is covered in the vid, just re-emphasizing/rewording it.
@projectfinance
@projectfinance 5 жыл бұрын
Thanks for the comment/suggestion! I see what you're saying. I figured it would be helpful to tie the connection between the two. When you look at any low POP strategy, the risk is going to be less than the reward potential. For me, it really helped me when I connected the probability of making money and the risk/reward of any given trade.
@HDBnB1
@HDBnB1 3 жыл бұрын
So you only make money on options at the expiration date right? If TSLA was at 620 today and tomorrow it's at 700 and you bought an options contract saying that it would be at 700 10 days from now, you wouldn't profit anything until the contract expires? So even if it went up for a day but dropped back down by your expiration date, you wouldn't profit. I guess I was under the impression that you could exercise that option anytime between the day you bought it and expiration but I guess that doesn't make sense haha. Still very new to this. Great video. Subbed
@projectfinance
@projectfinance 3 жыл бұрын
No, you make and lose money constantly as the option price changes. If you buy a share of stock for $100 and the share goes up to $103 in 5 minutes, you have a $3 profit on your position. Sell the share for $103 to realize your $3 profit. If you buy an option for $1,000 and it increases to $1,100 in 5 minutes, you have a $100 profit on your position. Sell the option for $1,100 to realize the profit.
@poke-dratini2893
@poke-dratini2893 3 жыл бұрын
Thanks for the video. If I buy an option premium then selling that option so do I subject to the risk as the selling option .
@seymoresmithh8908
@seymoresmithh8908 3 жыл бұрын
If you buy an option then sell that same option then you closed the position. You no longer have the contract so no risk. The risk is if you opened the position by selling. But closing the position by selling means no contract therefore no risk.
@julianedwards9643
@julianedwards9643 4 жыл бұрын
so buying a call is buying to sell and buying a put is selling to buy (at a lower price)...?
@bitsnbots7541
@bitsnbots7541 4 жыл бұрын
This gentleman is the best explainer in chief on the tube
@projectfinance
@projectfinance 4 жыл бұрын
Thanks for the kind comment! I appreciate it. I do my best! -Chris
@croosadabilia
@croosadabilia 3 жыл бұрын
That was an epic video! good job. I have been taken to school today.
@lucasbell8626
@lucasbell8626 3 жыл бұрын
This video was awesome - great information! Thanks Chris!!
@arupian666
@arupian666 4 жыл бұрын
1:42... BUYING options with less than 30 days to go ? theta will bend you over and spank you for being a bad boy... as an premium seller, I live for people that make these kinds of trades... - OK, should have watched the rest of the video before commenting... thought you were saying it was a good idea. My bad.
@projectfinance
@projectfinance 4 жыл бұрын
You are suggesting that you will always lose money when you buy options with
@desidiyer
@desidiyer 3 жыл бұрын
the video cuts are too distracting.... otherwise no complaints
@WholeHerbs
@WholeHerbs 3 жыл бұрын
You look great and thanks for the video!
@franks4080
@franks4080 4 жыл бұрын
Is there a good demo site to practice on?
@janetwells5924
@janetwells5924 4 жыл бұрын
Arguably, you can aswell earn whilst practising though. I'm sure you're aware?
@TheLogan1186
@TheLogan1186 2 жыл бұрын
What would be the point of buying options? Yes the risk is much lower and there is opportunity to make make a larger profit. But don’t you only make realized profits from selling options?
@projectfinance
@projectfinance 2 жыл бұрын
You have to buy the option and then sell it at a higher price. The point of buying options is to increase your reward potential (percentage wise) compared to buying stocks because buying shares is much more costly than buying a call option. Buying a call option is riskier because you are making a time-specific directional bet, and can lose 100% of your money at a much higher stock price compared to buying shares. Buying shares is more expensive because you have unlimited time for the stock price to go up. Read my newsletter here, where I describe the above in more detail and with a chart: pfnews.substack.com/p/options-are-a-tool-not-the-entire Buying a stock IS like buying a call option, just with unlimited time and a much lower stock price where you lose 100% ($0 stock price).
@iGaRaai90
@iGaRaai90 5 жыл бұрын
well informed charismatic video thank you
@projectfinance
@projectfinance 5 жыл бұрын
You're welcome! Thanks for the comment! -Chris
@rosalinajohnson6395
@rosalinajohnson6395 2 жыл бұрын
A perfect explanation!!!
@pradprad4321
@pradprad4321 2 жыл бұрын
Fantastic lesson. Thanks for teaching us. This is the best teaching on options ever on KZbin
@projectfinance
@projectfinance 2 жыл бұрын
Thanks so much!
@MrS690
@MrS690 Жыл бұрын
Writing an option and closing an option you bought isn't the same thing right? If you close you don't bare any risk anymore?
@projectfinance
@projectfinance Жыл бұрын
Correct.
@RouletteRookii
@RouletteRookii 4 жыл бұрын
If you or someone can explain to me the percentage of you make or lose from buying that would be great. I have a tradestation account and to test buying I did a buy call on SPY for a 100 days and went the opposite direction. I was negative 175%.......this was during the initial phase of the COVID outbreak. Am I only risking the max amount of money I put in or can my losses for options buying exceed my total amount that I’m willing to risk?
@alexeybrynzan
@alexeybrynzan 2 жыл бұрын
Thanks, Chris! ) Great Video
@sandrojlu
@sandrojlu 4 жыл бұрын
Hi, can you guide me? I’m buying a call option paying $97 for the right to buy 100 shares of AMZN for $3,550 by August 14. If Amazon shares aren’t $3,500 or higher on 8/14 the contract will expire worthless. I wanted to know if $97 would be the max I can lose? I’m confused because it says I’ll be buying 100 shares for $3,550 per share. Does that mean I’ll be forced to buy 100 shares at $3,500. That would cost me like $350,000. Or is they hoe much the shares I’ll get will be worth to sell. Not sure, Please advice, Sandro
@freedeliveryprinting3100
@freedeliveryprinting3100 5 жыл бұрын
I found this video to be very informative...great content...easy to understand......just slow the pace down would be my only constructive advice. look forward to watching the rest of the series.
@projectfinance
@projectfinance 5 жыл бұрын
Thanks for the constructive feedback! I'll definitely do my best to slow it down.
@huntstoddard9322
@huntstoddard9322 5 жыл бұрын
You can slow down or speed up any KZbin video you want from the settings menu. This can be very helpful.
@austinluepkes5484
@austinluepkes5484 Жыл бұрын
I look at all options selling similar to owning an insurance business or a casino. Options buying is much like purchasing insurance or playing the slots.
@projectfinance
@projectfinance Жыл бұрын
Options can be highly speculative or used to reduce risk depending on how the trader uses them. Most use them to speculate. Option buying AND selling can both be speculative.
@715SF
@715SF 3 жыл бұрын
10:23 As an option sell don't you want it to stay the same or at least go up so you don't lose money? Can you clarify 9:10, I get 8:55 if the stock goes down to 0 and bankrupt you lose $35,000 because you can't recoup from the current stock price and have to purchase the shares at $350 each. You do get reduce your loses by $790. But at 9:10 wouldn't the loss be only $790? Yeah the stock went to $350 and now you're screwed because you have to dish out money to buy the shares but it wouldn't be a loss of $34,210 since you now have equity.
@Nouveau0
@Nouveau0 3 жыл бұрын
At the start, I don't understand why he would want to buy a 355 Call option when NFLX is trading at 358?? Shouldn't you be choosing a higher price than what it's currently trading at? I hope someone smarter than me can explain!
@caius6019
@caius6019 3 жыл бұрын
In the money options are a lot more expensive but have much higher odds of expiring in the money which makes them more likely to be proditable
@Nouveau0
@Nouveau0 3 жыл бұрын
@@caius6019 I understand now thanks! 🙏🏼
@mikedok1
@mikedok1 3 жыл бұрын
Are you an android? Who are you? What have you done with our options friend, Chris? We’re onto you! You’re none blinking self gave you away. We want our options friend back, now!!
@projectfinance
@projectfinance 3 жыл бұрын
Haha this is an OLD video! The real me is here right now and in the newer videos. I was really bad talking to the camera in the past.
@mikedok1
@mikedok1 3 жыл бұрын
@@projectfinance Oh okay!! Welcome back, Chris. Glad you’re okay. I can now continue my options journey, in a peace of mind.
@AllFather411
@AllFather411 3 жыл бұрын
BLINK! MAN! BLINK!!...BLLLIIIINNNKKK!!!
@queenvee9729
@queenvee9729 3 жыл бұрын
Thanks Chris... Understood
@samuimuscle
@samuimuscle 3 жыл бұрын
Another great VDO, it made me compare buying/selling options to buying/selling lotto. Government who selling lotto always win. Of course it it is not 1-1 comparison. Just in the probability stand point.
@gloryofthelord5092
@gloryofthelord5092 4 жыл бұрын
Chris! Thanks for classes, good once. With your example with NFLT netflix, if price of stock go up about 10%-11% on good news, price of call ($14.50) go to aprox. $45. Value go up, on a beginning of 29 day period, but what you can do with it if it's on middle of 29 day period. What scenario, and who is going to buy this $45 call options, if two weeks left.....could you pls.
@kangokidkidd4037
@kangokidkidd4037 2 жыл бұрын
I have one question please..so if I am a buyer of a call or put and either is going in my favor do I have to close either to buy it back to get my profits or can I just wait till option expires...thanks for your time and awesome videos
@prebenebbesen5547
@prebenebbesen5547 Жыл бұрын
Good job. I like your style.
@நீவாழநீயேவாதாடு-ன5ம
@நீவாழநீயேவாதாடு-ன5ம 3 жыл бұрын
Hi bro, is there a chance to learn options step by step guide you have it? Please suggest me, I'm interested to go slow race, rather than loosing energy by going very fast.
@soleloveny3385
@soleloveny3385 3 жыл бұрын
The purple beret typically desert because eggnog ontogenically bubble midst a rampant blowgun. petite, tenuous marimba
@tyehu4533
@tyehu4533 5 жыл бұрын
Thank you, great video, as I continue to learn, I will start a tastyworks account and trade. Question, when you get into a position, Sell a Put position like your example, Sell the 350 Put, date 4/18 to 5/17, how long are you required to be in it? Or what is the earliest you can get out of the position, even if you're taking minimal profit and want no further risk?
@chritsfootballs
@chritsfootballs 3 жыл бұрын
When you sell options, you are obligated to the contract until it expires
@seymoresmithh8908
@seymoresmithh8908 3 жыл бұрын
@@chritsfootballs - not true. You can buy back the option to close out the position at any time. You can even close it out same day (but you will get a day trade ding against you).
@arangkannelkuppusamy96
@arangkannelkuppusamy96 4 жыл бұрын
In selling put premium is paid in advance. If closed close, do we have pay? And base on what rate?
@fletcherjames6586
@fletcherjames6586 3 жыл бұрын
I THINK I FINALLY UNDERSTAND
@DDFinance
@DDFinance 3 жыл бұрын
I don‘t get it. If you buy options, you have to sell it. There is no way around it.
@billestep6804
@billestep6804 3 жыл бұрын
Y The only way you can lose selling puts is if one u close the position at a loss or two the stock goes to zero. You can get assigned and use a call selling strategy to recover your loss eventually. If it drops dramatically. It might take you months to recover your losses.
@colybwoy
@colybwoy 2 жыл бұрын
Thanks Chris another great video on difficult concepts to fully appreciate as a beginner. Unfortunately tastyworks is not in Canada as yet so I'm stuck with TD
@markbranscome2998
@markbranscome2998 3 жыл бұрын
By the way, LOVED the video on Options trading, but for some reason I can't get my head to figure this out. I have no idea when I make money. LOL
@jesseclingan
@jesseclingan 3 жыл бұрын
I've learned so much watching your channel (and also your brother Mike on Tastytrade)...one topic I would love clarity on is, if limiting a single trade to 2-5% of my account, would that be more in reference to buying power used, or actual net liq. "loss", should I be assigned. I would prefer selling puts or strangles due to ease of management and higher premiums/pop without purchasing the wings as an IC, but am hesitant to open too many trades at once as many UL's are higher priced these days. Thanks for the time and effort you put in to teaching others, Its very appreciated!
@dc-wp8oc
@dc-wp8oc 2 жыл бұрын
Chris, love the content but wish my brain worked as fast as others seem to. Do you have videos that step through the various options scenarios? Perhaps you could present a theoretical option opportunity, giving two or three approaches to it. Then step through each approach and reveal which one you would initiate and why, how you would monitor and how you would expect it to finalize.
@mkz4123
@mkz4123 4 жыл бұрын
If your call option expires in the money do you have to buy the the contract at the strike price then sell it to make your profit or you don’t have to buy them and the intrinsic value will be transferred to the call option holder without needing to buy the shares?
@alwells99
@alwells99 4 жыл бұрын
You lose the full value of the option (your example >$1K) as a plus for buying as it limits your loss if it does not work. But I would set my stop loss not avoid losing that amount on an equity trade, so I am not sure how buying options benefit in that sense...
@pall5114
@pall5114 4 жыл бұрын
Excellent job, only think a bit fast speech if your newbie and trying to grasp the concepts but fortunately rewind button.
@jaynewman120
@jaynewman120 4 жыл бұрын
I'd like to see how an option price is calculated with the time decay. How did I lose money on a buying an out of the money put, and the price moves down, by $50 in 45 minutes. No one talks about this. I hope you can help in a video somewhere.
@johnboy7819
@johnboy7819 5 жыл бұрын
Awesome videos. Question- If you wanted to gain exposure for just an intraday time period directionally for SPY or whatever stock (opening position at open and closing near close). What option strategy would you use to get that exposure? I have been using same day or nearest expiration and buying a debit spread that generally buys slightly ITM or say a 70ish delta and sells an OTM contract that pays for whatever extrinsic value I have paid for in the ITM option. Position sizing according to my max risk. I have heard other says they would sell covered puts in a long biased scenario or calls for short. What are your thoughts? Thanks for reading.
@rickeythompson7542
@rickeythompson7542 4 жыл бұрын
Thank you!! Listening to you has helped me to understand more and more. Im just getting started with paper trading and i find your videos to be most helpful!
@projectfinance
@projectfinance 4 жыл бұрын
I'm glad it was helpful! thank you for watching!
@zhengxijiang4087
@zhengxijiang4087 4 жыл бұрын
where can you do paper trading? with tradingview? I can only find stocks no option to exercise. are the tickers for options and tickers for the underling stocks the same?
@kangokidkidd4037
@kangokidkidd4037 2 жыл бұрын
So basically to be an options seller you got to have a lot of money....
@projectfinance
@projectfinance 2 жыл бұрын
Not necessarily, but you do need to put up a large margin requirement in many cases.
@Yussef415
@Yussef415 2 жыл бұрын
Good job explaning
@Staticshock-rd8lv
@Staticshock-rd8lv 4 жыл бұрын
Yo I got confused so when he says that if you sell a call option or put option before the expiration date it becomes riskier? If that call option or put option becomes more valuable after you sold it you risk losing crazy money going into the negatives!??
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