How People Get Rich With Options Trading (Math Shown)

[@clearvaluetax9382]

Options Trading For Beginners (Complete Guide): kzbin.info/www/bejne/hIiUq5yLec91bdk How to Get a Perfect Credit Score: kzbin.info/www/bejne/ol6tnoygncycjpo How to Fix Your Credit Score Fast! kzbin.info/www/bejne/j6uZZIKMmK55qKc

[@Zenitram-xv1qs]

Brian one video on crypto

[@mikep8953]

after watching the beginner video. I was under the impression that you still have to buy the shares of the call options. how are you able to buy 125 call options without buying the stock when you accept the call option? with the 10,000 example? wouldn't you be limited to 2 call options?

[@sidra_games4551]

@@mikep8953 The brokerage firm will buy the shares at $38, sell at $46 and leave you the difference assuming you exercise or wait til expiration. You will never actually be holding the shares. You don't need the funds to purchase all of the shares. Incidentally prior to expiration if the price moved in the direction you want, you can actually sell the options contracts back and their cost would be at basically $10.80 if the stock moved $10.

[@tristanmartinez9326]

Great advice as all ways. Always appreciate the genuine display when discussing your opinion.

[@shamzjones]

Stay near the strike price, At the money, in the money or slightly out of the money. Push the expiration date out as far as possible to give you some time and go with the trend not against it unless you have an edge.

[@Sandor.s]

Good advice

[@aroundtheworldtoo]

Exactly this!

[@water3745]

"some win big, some lose big" -> more like "few win big, most lose big".

[@fizzsoduh]

Yeah I didn’t know anything about options but bought meta calls before earnings. Extremely stupid and paid the price to learn. Thankfully just one call…

[@pancakes429]

​@@fizzsoduh I don't like buying before earnings because of IV.

[@Darkcamera45]

@@fizzsoduh how did you lose money didnt meta shoot up cause they preformed well on earnings?

[@fizzsoduh]

@@Darkcamera45 no look apr24-apr25 on their chart

[@yummymommy2275]

@@Darkcamera45might have been the prev earnings

[@DreamRydeMusic]

Brian is the type of guy who eats his Alphabet cereal in Alphabetical order 🙌

[@reachtrita]

😆

[@5dayMovingAverage]

I do that and i dont know why😅

[@sfer7773]

😂

[@aggierowe9574]

😂

[@popeye8427]

Lmao 🤣 🤣 🤣

[@bugatti6032]

Thanks!

[@clearvaluetax9382]

Thank you Bugatti! I appreciate that super thanks!

[@peaceful4you408]

They literally have options trading in exchage traded index funds now. Companies are now trading options for investors that don’t know how to do it themselves. All you do is put your money into index funds that trade options and the companies will distribute the returns to the investors in the form of dividends. These types of index funds has definitely revolutionized the stock market for sure. People are getting wealthy way faster from the stock market now because of these types of funds.

[@shamzjones]

Thank you Brian! Always dropping the videos we need the most

[@everythinghere2587]

No body can explain better then you love your all videos

[@ballisticbullet428]

I see alot of comments saying dont do option you will go broke i am very new to the market and i haven put anymore than 3k in and i already making headway im not the smartest nor am i the dumbest im pretty average but after losing some options i started researching more and paying attention to graphs and i made back all the money i lost and some it just takes learning and patience

[@mrabrasive51]

Theres so many variables involved with trading options it would take you years to scratch the surface..and then theres market maker manipulation etc..

[@italianmiltyfriedman6264]

manipulation is the word people use because they dont understand market cycle.

[@mrabrasive51]

@@italianmiltyfriedman6264 Gamestop..just to name one.ive been trading options since early 80's.

[@raybod1775]

It took me 5 years to figure out successful stock trading and 10 more years to refine it. It takes more work than almost anyone is willing to do. It’s good to say to yourself “I’ve seen this picture before” and trade accordingly.

[@LoneWolf91]

When Brian was born, he congratulated his parents, and drove them home. 👋😁🤚

[@zadokmotorfreight2423]

💯, Lol!

[@jasonjenkins5857]

😂

[@SewingBoxDesigns]

Thank you so much for making everything so clear and understandable.

[@Steve-ci8nw]

you forgot tu subtract the premium price from the final profit when your call option expires in the money

[@tritosac]

Selling out of the money covered calls is the less risky strategic way to make money on stocks you already own.

[@clearvaluetax9382]

Yes, I made a video on that months ago. I think it has over a hundred thousand views so far.

[@Frank-lk8ox]

Yes, but if the stock price exceeds the price limit then you lose all your shares

[@steveno7058]

@@Frank-lk8ox yes but you make profit on the sale of the stock and premium received. You don’t sell covered calls on stock you are afraid of selling

[@eddiebanks6704]

Your just forced to sell at the strike price you don’t lose any money

[@jeppertalks]

I decided it's time to start learning this stuff... this was an excellent video! Very well spoken, and the examples were crystal clear.

[@DMMUrl]

This is a good video for a baseline on options, thought it does not take into account the greeks. For example, if you buy an option on a stock with high implied volatility, the stock could go in your direction but you could lose more money to theta decay.

[@clearvaluetax9382]

Yeah but you forget to mention anything about the gamma in your comment. So that was a good baseline comment, but left out a few things. This video was made for beginners.

[@barrydingle3830]

I think I'm misunderstanding something. $80 is the price of option contract, but when you choose to exercise the call at $46, you still have to buy the stock at the strike price ($38) before selling it, right? That's another 125*100*$38 = $475k of capital needed before immediately selling off and profiting the $90k. Where am I wrong? Is the buy to sell transaction automatic, and are you not given the choice to hold onto the 12500 stocks you bought at a discount?

[@antonkal]

I'm confused as well😅😅

[@TankTheSpank]

Contract price is 0.80 cents according to him

[@UncleYoshi]

This option strategy is high-risk high reward. The success rate is very low for most people

[@clearvaluetax9382]

That’s why the odds are 2:1, 5:1, 10:1. Mathematically what you say is correct.

[@v4vannatta521]

Thanks dude, I needed this one :)

[@clearvaluetax9382]

I know I’ll get criticism for people saying it’s risky, but I don’t think people understand that I made it for people that want to learn options. This is not for everyone. But I hope this helps you!

[@JS-jr1fo]

Loving these options videos brian please keep them coming 🙏… they really dont want us to know this info it could literally be life changing for a lot of people when the right opportunity arises

[@clearvaluetax9382]

Yes! It’s my pleasure to teach this knowledge. Thank you for the support!

[@vickaps]

what's the difference between exercising vs selling an Option contract?

[@Killmonger23363]

FINALLY MORE OF THESE

[@rigobertochavezjr2026]

Does it have to be above 38 by the end of the month ... or does it just have to pass 38 within the month?

[@mannya_realtor]

Most lose big. Some win big. This feels more like gambling than investing.

[@hermeskino711]

It is gambling 😂

[@GALLOGALLO-f5b]

@@hermeskino711 no its not

[@MrDienkhanh]

Unless you are Pelosi.

[@jekylltraveler]

I recommend a video explaining the sale of cash covered puts to obtain stock. It's much safer than buying options. It is a good beginner strategy.

[@ChirpingChocobo]

Brian, thank you for this vid. This is the best time to start learning about this because options are going to be exceptional when Feds lower interest rates and turn the money printers back on.

[@TimeLessEntityT0]

Brian I normally sell puts and calls.

[@Steve-ci8nw]

thats the way to do it, covered calls and cash secure puts... buying options is VERY risky and people will loose it all, but selling options on stocks you are already own or stocks you want to own, is the way to go. There is still risk, but WAY more mitigate it

[@ninjazzrhythm400]

Will you get margin call if you didnt enough money when the option expires ITM?

[@italianmiltyfriedman6264]

no, your broker will sell the option minutes before expire

[@Desareegresz]

I Hit 12k today trading. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Louise O'Brien for helping me achieve this.

[@RyanMaverick12]

I'm happy to see Mrs Louise O'Brien mentioned here, my husband recommended her to me when I was in Germany during Covid, she's amazing.

[@AveryBrice3]

That woman has changed my life for good. I attended her investment class couple of weeks last year and she’s the best when it comes for Guidance.

[@Shelby.Thompson]

I'm new at this, please how can I reach her?

[@DeonLewi.s]

I was skeptical at first till I decided to try. It's huge returns is awesome. I can't say much

[@Desareegresz]

She communicates on tele gram..

[@baldymtngrizz2527]

Question, when the options expire, you are basically losing the premium paid of 80 for each contract? So if you had 125 contracts, at 80 each, that is how you lose everything? So for a beginner, maybe start with 1 contract(100 shares)

[@neferpitou3934]

Hmmm there are some more aspects to it. I sell options and have delta neutral straddles and strangles to profit from theta decay and use 10% of my portfolio for option buying. Time is not necessarily against you.

[@MrDual100]

Didn't even bring up short term capital gains as a tax man lol All kidding aside, you're videos are excellent.

[@thatpointinlife]

That's a very valid point. Add in trade commissions and slippage, and traditional "Buy and Hold" investing looks better and better.

[@rezakarampour6286]

Thank You . Much more informative 👍

[@Dana-ie2bh]

You can also buy 3X leveraged ETF's which unlike options, give you leverage without the time risk, and are usually smoother moving than any single stock. And the spreads for getting in and out are usually much tighter than stock options.

[@raybod1775]

Options are the quickest way to go broke. People should do practice trade until they figure things out. Once they think they’re good enough, only trade the ‘best’ 30% of the time. The other 70% of the time observe what goes on the the market, own predictions and economy. It’s virtually impossible to do single day trading because that’s dominated by computer trading systems. Figure out a longer time period to fully execute your trades. Sell quickly if things go opposite of what you predicted would happen. Always be able to answer the question “Why do I think this will be a successful trade”

[@anishbabbar7059]

Easiest way to become rich, change your thinking. Dont scare other people

[@coreygigoux7342]

The spreads are ridiculous Brian u didn't mention the delta and theta bleeding the call or put

[@bayareadrifter415]

Thank you for the information! I was wondering what options were. Might give it a try 🤔

[@vulcan4d]

Great video but it doesn't say if you are locked to that 1 month or not.

[@baldymtngrizz2527]

Also, if the stock goes up, do actually have to buy the stock or do you just cash out the contracts? I was thinking you would have to buy the (12,500) shares then resell them? Who has that kind of money?

[@Kevbev_linky]

Hey Brian! Love your videos theyre very helpful! Could you do a video explaining different types of strategies we could use to minimize our risk?

[@JasonAmir-qo4uo]

Very informative video you have, I have been able to understand the messages you pass but there are some other challenges that may come about when taking some other risks or planning

[@John-ww2fv]

I don’t think anyone that has dedicated time,money and efforts to scale to new net worths in whatever field of investments hasn’t reach some of the challenges that you would face personally.

[@Alan.Garcia01]

I think the ones who benefit are only the ones with insider info..

[@descendinggod9740]

That is true, however if they make too much (millions, tens of millions, etc) they are on a target list and will be investigated. Sometimes they just have to pay a hefty fine, but they made more money that the fine so, its a win for them. However it a bad look publicly so its much better to just buy stocks and stay off the radar.

[@MrSimmons79]

If you learn technical analysis you have an edge over most. Not always insider info.

[@omalashevich]

Best option, low cost index fund. That’s only option you need ❤

[@SuperDreadnaut]

slow and boring route sure

[@gds6531]

I’ve been trading options for years it’s so crazy watching this and how I started…I use to be so confused now I trade with confidence

[@toshatalks8544]

Any tips with only 100 bucks and new to this?

[@gds6531]

@@toshatalks8544 I would start off with atleast 1000$

[@gds6531]

@@toshatalks8544 trading with only 100$ will get you small gains yes you can start off with 100 in options market but tbh I’d trade 1k+ into close itm options on weekly basis or two-3 weeks out

[@gds6531]

100 will only gain 10-20$ as too 1k can get double or 300-800$

[@jagseersingh844]

can you share some tips

[@RicarddO90]

I am new to this, but when you say that you lose the 10k is because the 10k is used to pay the premiums of all this shares correct ?

[@impo55]

That is correct, if the stock doesn’t go above 38 in the example you don’t exercise the option and simply eat the cost of the premium.

[@dansdollar8318]

What are most favorable to buyers put option, call option or cash secured options? I am thinking of starting option trading.

[@trellekimmons]

You are wrong because if the stock moves up $10 dollars that doesn’t mean the options move up ten dollars, that is because of the delta, the delta may be .30 cent for every dollar the stock move so if the stock move up $10 dollars the contracts price would move up about $3

[@pedaltheglobe419]

Yes but as you get closer to expiration the value would progressively get closer to $10.

[@AP-40309]

@@pedaltheglobe419 nope. Because of the time decay.

[@alphansoengland392]

question please answer: I placed 3 stock options calls. and the price of the stock went up $20+. BUT my option value didn't go up like it usually does. etrade said even though it went up it was out of the money. BUT every time I place trade was out money but my value in the change still went up BIG. now etrade saying people did buy that contact. I THINK it's something going on!! Can anyone please explain??

[@clearvaluetax9382]

Go to our website message board and let me know more details so we can take a look.

[@alphansoengland392]

@@clearvaluetax9382 HI I sent the message

[@elizabethjones-g8p]

Awesome video! Quick unrelated question: I have the OKX Wallet with USDT, and I have the seed phrase. (job priority warm lab border boil monkey manage palace fiber weird ask). How do I move them to Binance?

[@kitko1236]

I am confused with 36 and 38. ???please clarify.

[@mikeyn1900]

How/When do you account for the $$$ you will need to purchase the shares at time of exercise?

[@kellynguyen6244]

Great education video!! Thank you!!

[@oloscarlopez8]

It’s basically gambling

[@Henry..s]

If that is the case.. just be the casino, you can sell the option to the one buying... you collect the money and keep it. If it expires worthless you get to keep it all.. way better and less stressful

[@dontforgettolike7127]

I mean yes, but as far as I’m concerned, so is investing in general. At least the stock market, since it’s all bullshit anyway.

[@DrivenA111]

@@dontforgettolike7127BS how??

[@shanetogukawa6890]

no risk no reward

[@firsthello7618]

@@dontforgettolike7127voo or vti then and forget it

[@rajasekhar-sg978]

In the above case. Call option need to wait until the expiry or allowed to sell before expiry.

[@DaBooster]

Depends on your country. In the USA and Canada you can close out the option at any time before the expiration date but in the UK you can only do so on the actual expiration date.

[@rajasekhar-sg978]

@@DaBooster Noted and thanks for responding.

[@kenley1995]

New subscriber i love this channel

[@giovanniboss1659]

Don’t you have to buy those stocks though in order to get profit? So you’d have to have 100k in the bank to buy them right?

[@davidinman6020]

tldr: never touch stock options.

[@steveno7058]

If you are the one SELLING call options it isn’t high risk at all.

[@vdvoskin1]

Excellent material. The best i've seen on this particular subject.

[@jpmiyuka]

Thank you for the information Brian! Amazing and informative as always.

[@Kickingitoldschoolbaby]

Risky stuff… definitely not for new investors but good info 👍

[@clearvaluetax9382]

Everybody was once a beginner but I understand what you’re saying, newbies should understand first and proceed with caution (which is why I made this video to help).

[@Kickingitoldschoolbaby]

@@clearvaluetax9382 absolutely right, everyone has to start somewhere

[@FreeKekistann]

I personally don’t feel comfortable with options 😂 but margin is whole new level of crazy for me.

[@nKm-2023]

​@@clearvaluetax9382 ..Is it 30 days exactly or is it within 30 days? Say it hits $38 in 10 days, do you cash out then?

[@HashChootool]

Your price calculation doesn’t include the value of time?

[@mendezanderson]

Thanks for the video

[@clearvaluetax9382]

It’s my pleasure and thank you for the support Mendez!

[@Plasma686]

In these scenarios would I be selling the option or excersizing the option

[@johnny09876]

in this example would I actually need the 90 000k to buy alll those stocks?

[@ignition07]

Thank you for this, super simple and clear.

[@Hank_Amarillo]

can you sell the options before it expires in 1 month?

[@thatpointinlife]

Yes. You can also set stop limits.

[@clearvaluetax9382]

Yes you can.

[@mannymanny3859]

Interesting , so call options only came in quantity of 100?

[@Henry..s]

No, one option contract is equal to 100 shares. The price of the option will show like in the example, .80 cents but when you go to buy it it will show 80 dollars

[@thatpointinlife]

All option contracts, Puts or Calls, are for 100 shares of the underlying equity. One contract = 100 shares. Five contracts = 500 shares. 10 contracts = 1,000 shares.

[@margaritalikethedrink1041]

You're forgetting the cash backed portion of the calls - where did you leave money to exercise the options?

[@kaboom9174]

Can you explain the Greeks in stock Options. You're able to explain things in ways I can understand so id appreciate it if you did. Thanks!

[@Foreverwhatever]

Yea please

[@colorcodetrader4032]

TIme decay kills it if your timing and your risk management is off. Not for beginners.

[@clearvaluetax9382]

Do some people not start as beginners?

[@prayerkid6326]

Buy Leap options which gives more Time

[@MasaoJPN]

In times of uncertainty, people gamble more with their money. So how often we win in Vegas?

[@Uriah625]

On the other hand I would argue that covered calls are your lowest risk-lowest reward.

[@julkakulka68]

Any chance of an intermediate guide?🤑 You explain it very well. There is not much, good intermediate content on the intrernet and books. I would be happy to buy some from you.

[@picard9169]

Finally a well explained video!!!!

[@1PITIFULDUDE]

I’ll go to Vegas. At least they’ll feed me when I go broke.

[@nabinbudhathoki4402]

Options are normally designed to expire worthless. Due to IV crushed and theta decay people usually lose money by buying options even you are right on your direction. For novice it is better to sell covered call and cash secured put. Just buy stocks you want to hold it for long term and start selling options.

[@swardinc]

that not bad, when you think of it i would gladly loose 10k to make 90k but then margins i think that 10k turns into a loss of 100k plus or something like that?

[@zubenelgenubi_ii]

THANK YOU, Perfect explanation

[@UtahAnesthesia]

Starting out LEAPs should be bought if doing stock options

[@antoniod3254]

thank you so much, where has this math been my whole life

[@ryno411j9]

Great advise Brian, AMC call options worked out well

[@kimilala1000]

Best Video EVER.

[@DrewHolidayz]

It’s definitely a learned skill that can get you out of your 9-5 job if it’s done correctly consistently.

[@CreativityRealized]

Thanks for this new video on options. I was just recently watching the other video you made on options.

[@tradingbuddy007]

Future contracts are much better compared to options. No theta decay, no PDT restrictions plus tax benefits.

[@antonkal]

I'm confused by how I would profit 90,000 in this example. All I have is the right to buy 125 000 shares at 38$ instead of 125 000 shares at 46$??

[@winterbrotherz]

My thought too. You are have to have the capital to exercise your right to buy the stock at that price

[@samsonmashabane4146]

You should go through option trading strategies; covered call, protective put e.c.t

[@clearvaluetax9382]

I’ve already made those videos months ago. They have hundreds of thousands of views.

[@RosieSmith-cn7mz]

I'm still a newbie getting into trades. Please any help?

[@brentdreisbach6829]

On the other side, if you SELL options instead of buy them, you flip this around. You collect that $10,000 from the people who didn't get the timing or strike price right. If you buy, you must be right on direction AND time. If you sell, you win if the stock goes down or stays the same. Much higher odds of winning the trade.

[@benny9041]

How do you sell something that you haven't previously bought?

[@Steve-ci8nw]

@@benny9041 to sell options, you have to either own at least 100 shares / contract (to sell covered calls) or you have to have the cash in your account to buy 100 shares of the stock at the strike price you chose (to sell cash secure puts)

[@TimGautier]

If you buy, you can't lose more than 100%. If you sell, there's no limit to how much you can lose.

[@brentdreisbach6829]

@@TimGautier very good point

[@vikramjeetsran03]

Basically, it gives you the right to buy at strike price but you profit only after you purchase the lot. If you purchased 125 calls with $10000 then how you will buy them with no money left?

[@clearvaluetax9382]

You don’t buy the stock. If you buy the option for $0.50 for a $80 strike, then you pay $50 not $8,000. You’re buying and selling the options (not the stock).

[@ShilpaGAhuja]

Thanks for explaining this. Do you have any explanation on Forex options? Or forex in general? Is that less risky?

[@prinayautar4387]

Thanks for teaching me at this novice level!

[@ryandach3289]

You Sir are awesome 🎉

[@puneetsidhu8780]

thanks so much sir it is amazing

[@christianpark9671]

You can sell options too, far more sustainable and profitable

[@necbranduc]

IV crush, days till expiration .. and many more other examples of how this can go very bad, very fast!

[@clearvaluetax9382]

I personally would not do this (just covered calls and cash secured puts where time is on my side). But the people that have been asking for an example of stocks vs stock options should really benefit from this video.

[@autohrap5884]

Brian is the type of guy that cares about people. If he ran for President with Vivek, I’d vote for them

[@iluveggtart]

First 💪 great video!

[@clearvaluetax9382]

Hi Seezee thank you for getting here 1st!

[@chapter7149]

I’ve been thinking of getting into options for years, but I know I’d get greedy and lose it all 😭😂😂

[@Christineperkins-uw8ow]

I suggest buying the new tesla innovation shares at this point as they are relatively cheap and are sure to yield long-term profits