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

[@projectfinance]

✅ 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

[@vkollur]

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]

Me too man!!

[@xlmz9433]

the knowledge is mindblowing.

[@sameerkdv]

Same here Simply fantastic

[@mikedok1]

@@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.

[@hardware4200]

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.

[@mobiusgrey9522]

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 👍

[@diverdown81]

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]

I love this! 😂

[@Tonyrg1988]

selling a naked option is like going outside naked all the time eventually theres going to be a blizzard

[@titaniumsandwedge]

@@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.

[@pradprad4321]

Fantastic lesson. Thanks for teaching us. This is the best teaching on options ever on KZbin

[@projectfinance]

Thanks so much!

[@bitsnbots7541]

This gentleman is the best explainer in chief on the tube

[@projectfinance]

Thanks for the kind comment! I appreciate it. I do my best! -Chris

[@vishalbhardwaj8629]

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]

Thank you, Vishal! I'm glad the video was helpful.

[@philgiffney]

Great video! How do you talk for so long without blinking😳

[@timothymilord]

Hilarious 😭

[@seymoresmithh8908]

Editing.

[@bIacktide]

He blinks at 5:00.

[@420BLUNTLEY]

He blinks when you do

[@chadwintrey666]

Man I couldn’t even focus after reading your comment haha

[@eculpepper6546]

Great video, you are a very clear teacher, I need to learn more about tastyworks.

[@samapples9476]

thanks man i was getting very confused watching everyone else try and explain this concept 🙏

[@GizmoGuy620]

Question: What happens to options calls/puts, buys / sells in the middle of a stock split?

[@tinglegoblin3028]

Thank you. I started trading options recently and this helped with a question i had about buying puts.

[@jjsiegal1]

Good Video....thanks QUESTION: *Why would you "sell a Call vs Buy a Put ???"*

[@seymoresmithh8908]

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]

@@seymoresmithh8908 Your saying 'the option seller' can cut his loses ?'

[@seymoresmithh8908]

@@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).

[@keatonlitzenberg1762]

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

[@ericspecht2]

Always explain things so easily 🙌🏼 I learn a lot from your videos

[@rashmipatel4602]

I found your videos very helpful in learning -- thank you

[@cronos987]

Great video! Could you please make a video about the expected movement of a stock base on its volatility at expiración thanks

[@EllieVogelEllieVogel]

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!

[@samuimuscle]

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.

[@wrapitup46]

Great video. That cleared up so many questions I had been trying to figure out. Thank you!

[@croosadabilia]

That was an epic video! good job. I have been taken to school today.

[@deirdremacleod]

Your videos are great. Very clear, concise and easy for beginners to follow.

[@The1TheyAskAbout]

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]

Nothing can alleviate my confusion.

[@joykay2414]

Best break down I seen so far

[@lucasbell8626]

This video was awesome - great information! Thanks Chris!!

[@poke-dratini2893]

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]

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.

[@jesseclingan]

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!

[@milar9161]

Like the way you say - "particularly"

[@szhang2097]

I wish you could elaborate a bit more on the buy versus sell of PUT options.

[@projectfinance]

Sorry for not going a bit deeper on that subject!

[@rickeythompson7542]

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]

I'm glad it was helpful! thank you for watching!

[@zhengxijiang4087]

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?

[@rosalinajohnson6395]

A perfect explanation!!!

[@pall5114]

Excellent job, only think a bit fast speech if your newbie and trying to grasp the concepts but fortunately rewind button.

[@freedeliveryprinting3100]

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]

Thanks for the constructive feedback! I'll definitely do my best to slow it down.

[@huntstoddard9322]

You can slow down or speed up any KZbin video you want from the settings menu. This can be very helpful.

[@richardadams974]

The covered call explained please?

[@Financewithhaya]

Thank you very much for putting out such high quality content and explanations. You are a natural teacher!

[@gopalakrishnanp1492]

Man you do not blink it shows the passionate! your are master

[@projectfinance]

Haha accidental non-blinker in these older videos (first videos on camera).

[@markbranscome2998]

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?

[@larryhamilton5076]

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.

[@Corn3liu]

Thank you for another clear and informative video!

[@colybwoy]

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

[@franks4080]

Is there a good demo site to practice on?

[@janetwells5924]

Arguably, you can aswell earn whilst practising though. I'm sure you're aware?

[@h7opolo]

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]

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.

[@arangkannelkuppusamy96]

In selling put premium is paid in advance. If closed close, do we have pay? And base on what rate?

[@kangokidkidd4037]

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

[@jeremylim3360]

Extremely clear and concise explanation! 👍

[@projectfinance]

Glad it was helpful! Thank you for watching!

[@mariasv6308]

Chris, thanks for the clear explanation. Since theta works in your favor when selling options, what is the best strategy in terms of choosing an expiration date?

[@chriss2352]

I believe Tastytrade promotes 30-45 days to expiration.

[@ewaldo1113]

can you exercise call options to drive down your average share price?

[@alexeybrynzan]

Thanks, Chris! ) Great Video

[@jerrynix5206]

So what is the target risk to reward ratio that you try to get? Is the ratio different If you are buying vs selling? Thanks Chris great video man, I always learn alot from your videos!

[@projectfinance]

Hi Jerry, There isn't a target risk/reward I personally go for, just discussing the differences between the approaches. Yes, the ratio is different if you are buying vs. selling. When buying options outright, the risk will be less than the reward potential (Risk $1 to try and make $5). When selling options outright, the risk will be MORE than the reward potential (Maybe risk $5 to make $1). Just examples here and I completely made up these numbers. Let me know if you have any other questions as I'd be happy to help! By the way, I'm happy to have you as a loyal viewer!

[@jerrynix5206]

@@projectfinance thank you Chris I'm so glad I found you!

[@gloryofthelord5092]

What we need with Stock Price (up or down) for our Sell Put ( what we are holding) expires worthless? Appreciate you.

[@dc-wp8oc]

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.

[@texaspickr]

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?

[@VedicKnight]

I am still trying to figure out implied volitity

[@projectfinance]

Please check out my video explanation of Implied Volatility: kzbin.info/www/bejne/fl6xeY2nYtiefNE

[@mkz4123]

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?

[@715SF]

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.

[@johnboy7819]

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.

[@நீவாழநீயேவாதாடு-ன5ம]

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.

[@gloryofthelord5092]

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.

[@iGaRaai90]

well informed charismatic video thank you

[@projectfinance]

You're welcome! Thanks for the comment! -Chris

[@koserene5370]

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.

[@49metal]

If only someone invented a way to sell call options. It would be, like, totally amazing.

[@jerrynix5206]

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]

Yes! Don't forget about Sam Jackson! It's a Pulp Fiction piece by Banksy: en.wikipedia.org/wiki/Pulp_Fiction_(Banksy)

[@patriciofernandeztome7891]

Why did you choose the 29 DTE options for both strategies? Wouldn’t that be slightly more favorable for the selling aproach, since time decay accelerates the closer to expiration?

[@projectfinance]

I just chose the same DTE for each example to stay consistent. Yes, in practice, selling options with 30-60 DTE is common practice since the decay is pretty quick.

[@patriciofernandeztome7891]

projectoption, did you mean the common practice for buying options? If not, what would reasonable DTE range be for buying? I'm typically buying 80 to 60 DTE and aim to close my position not after 30 DTE. Thanks for your feedback, and keep up the great content!

[@prebenebbesen5547]

Good job. I like your style.

[@tyehu4533]

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]

When you sell options, you are obligated to the contract until it expires

[@seymoresmithh8908]

@@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).

[@WholeHerbs]

You look great and thanks for the video!

[@vijayaraghavankrishnaswamy5982]

Another good, Chris. Really enjoyed and learnt from this video also.

[@projectfinance]

Thank you!

[@kangokidkidd4037]

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]

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.

[@mikesperience]

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 ??

[@artur474]

Does open interest or volume matter at all when I am buying options? If I bought call options and want to exit because I am in the money, does volume matter?

[@projectfinance]

Volume helps entering and exiting positions because there are more active market participants. It matters. Stick to trading popular stocks/ETFs and you won't have to worry about volume.

[@artur474]

@@projectfinance Thanks. I thought as long as I am "IN THE MONEY" with my options contract, the seller is obligated to exercise the contract so I can take my profit. The concept of selling to close is a bit confusing. Why do i need to sell my contract if I just want to take profits? Since the contract is closer to the expiration day, is there a risk that nobody will buy my contract even though it is in the money?

[@projectfinance]

@@artur474 If you exercise an ITM option, the seller must take the other side of the share position you create. If you have a profitable option, the cleanest way to take your profits is to close the option (sell it if you own it or buy it back if you're short it). If you own an ITM option and you don't sell it, you'll end up with a stock position when the option expires, which is not what you want in most cases. For instance, if you bought the 150 call on a stock for $5 and the shares go to $165, your option is now worth $15 (a profit of $1,000). You can either a) sell the option for $1500 and take your profit or b) allow the option to expire ITM. You'll buy 100 shares @ $150/share for $15,000. Also, what if the shares go to $165 and you don't sell the option to take your profit? If the shares drop back below $150 by expiration, then you'll lose 100% of your trade allocation. You shouldn't have any problem selling an option you own, even if it's ITM. But if you can't sell it for intrinsic value (difference between stock price and strike price), then you should exercise the option and then immediately close the share position. Ex: You own a 150 call, and the stock is $165. You are unable to sell the option for $15. Maybe try $14.95 or something like that. You should get filled. If not, exercise the call and buy 100 shares at $150 and then immediately sell them at the stock price of $165 to secure your $15 gain per share.

[@artur474]

@@projectfinance thank you so much for your reply! Your videos are best when it comes to options on YT!

[@esmaeiltaghavi3316]

Awsome Chris , Do u have private class ?

[@seangreen420]

Great Video. Thanks. You have covered a lot in this short video, albeit basic concept. I would love to see a video on the introduction to the courses that you are selling. thanks again.

[@projectfinance]

Hi Sean! Thanks for the comment. An updated discussion video on both courses would be a great idea at this point.

[@vivekr2056]

THANK YOU SO MUCH I learned lot from your video thank you...................................................................................................

[@julienguyen7648]

Thank you for the video. This video is very helpul!

[@kornpunk18]

When closing a call position. Do you mean sell the call contract you previously purchased? If so are you open to any risk after closing that position?

[@projectfinance]

Yes, if you buy a call option (opening trade), then selling that call option closes the trade. Afterwards, you don't have any risk because you are no longer exposed to the position since you've closed it.

[@goitomabbay6872]

Great Video, very helpful.

[@andysingh5478]

Great explanation

[@matthewalmeida9940]

perfection explanation

[@sandrojlu]

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

[@Trader_65-OT]

Good review, thanks

[@projectfinance]

Thanks for watching and commenting!

[@AnimationBoydances]

I have a question. When I buy a put option and the stock falls below my strike price, do I have to sell it back to the market in order to realize my profit?

[@Bigbnfgv]

yes

[@MyAcresOfDiamonds]

if for example, i expect a stock to rise significantly in price over the course of one day, can i expect to be able to then quickly sell the option for a price somewhat similar to what i bought it for if the trade does not work out favorably? so that i'm not out the cost of the whole contract if i'm wrong? EDIT: i suppose then i'd be subject to a potential loss should the buyer of the option choose to exercise it?

[@seymoresmithh8908]

If you are the option buyer, then you control if it gets exercised or not. And yes, you can sell the option the next day if it doesn’t rocket as you hoped it would. But you may be selling for a big loss if the stock went the opposite direction or volatility decreased significantly in that 1 day (for example after earnings and the stock didn’t react much to the earnings).

[@chadchaddchaddd]

What do you think about buying a call option of $700 by 12/18/2020 leading up to S&P inclusion ?

[@chadchaddchaddd]

Current price of TSLA:$570

[@jaynewman120]

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.

[@markbranscome2998]

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

[@waltermercado9152]

I exclusively sell naked puts. I've never looked back. I love it. Easy consistent income.

[@RouletteRookii]

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?

[@edwashingtoniii9898]

I'm very confused. If I buy an call option @strike price $50 when stock=$55, I will be happy when the stock rises and =$60. He keeps talking about how suddenly when I am selling, I will want the stock to go down, but shouldn't that not be case? Won't I want it to continue to rise so that the call option I'm selling is worth more & I can make more money off it?

[@projectfinance]

When I say selling options, I'm talking about shorting options, which is selling them first as an opening trade. When you do this, you are betting against an increase in the option price (like shorting stocks). I was not referring to selling an option that you already own and after it increases in value. In that scenario, selling the option is a good thing because you secure your profit. Please watch my newest options for beginners video for examples of the above! kzbin.info/www/bejne/bYGwZaWEeddnpas

[@edwashingtoniii9898]

@@projectfinance you said selling the call option would allow me to secure profit BUT what if the stock continues to rise. Then, at the options expiration, my call buyer decides to exercise his option & make me sell him shares at a huge discount. Couldn't that erase the profit I made in the first place? People say that nobody usually exercises options, but that's not a sure thing right? He could exercise me and screw me over. I'm trying to trade naked options because I don't have nearly enough money to trade stocks in multiples of 100. So he'd obligate me to buy shares and I'd basically become super deep in debt...how would I even buy them?

[@spaul20062aa]

great video & thanks

[@mubarak3457]

It’s only when u sell dividends stocks that u get assigned??? Correct me if m wrong !

[@danielwayne2055]

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?

[@mattf1935]

Excellent video.

[@projectfinance]

Thank you, Matt!

[@Staticshock-rd8lv]

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!??

[@queenvee9729]

Thanks Chris... Understood

[@HDBnB1]

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]

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.

[@l3xmal265]

best explanation about opinions that I have seen. thank you dude

[@MrPaulHuynh]

Thanks for the great video

[@Yussef415]

Good job explaning

[@bryantcaminero9899]

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"?