What are options and covered warrants? - MoneyWeek Investment Tutorials

Options and covered warrants are two derivative products that have proved in recent times. Here, Tim Bennett explains what they are and the risks of using them.
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[@bekithembandebele8270]

Is this just me or this guy is just the best teacher there is. Thank you for taking some seemingly complex concepts and simplifying them. You really are good

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I know im asking the wrong place but does anyone know a tool to get back into an instagram account?? I was dumb lost the password. I love any tips you can give me!

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@@clarkzavier1521 I am not sure but is that not a thing a simple forget password would help you reset?

[@Fred-zt5ky]

he’s an outstanding teacher indeed I learnt so much from him

[@spi-phiquotes3923]

I'm not a chronic KZbin-commentator, but you, sir, are magnificent, not only at explaining, also at making the subject matter come alive in an exciting way. Thank you.

[@dennixmaina]

with the Bahamas joke in the beginning lol

[@rasaiyamahendran97]

Us

[@michz2256]

THE BEST TEACHER ! I'M AN MBA GRADUATE AND I COME HERE TO REFRESH MY INFORMATION . THANK YOU FOR THE GREAT JOB YOU DO .

[@MeneTekelUpharsin]

mich Z Do you really make a lot more than 20 thousand/month or were you joking?

[@jameslarsson8701]

+David Swaim binary options is a scam. if you win the company loses and they will not allow that.

[@jameslarsson8701]

try to make a withdraw your capital and see if they give it to you. they won't. it is an ellusion. so bye bye to your money gambling

[@michz2256]

+Michael Gray if you do you wouldn't be chasing people on KZbin. Get lost

[@warrend.okodamavoungou4073]

James Larsson binary options are not normal options ! Yes, It is a scam because it’s the part with more money who wins this !

[@mattomicgaming1859]

Absolutely incredible. I wish I had you as a lecturer at university! Please keep making these videos because they are amazing! It would be incredibly useful if you could teach us IFRS standards

[@tehutimaat1647]

say it again please say it again ..we all the way in the bAck can't Hear you ...

[@prasannavi1911]

Whenever i am confused on understanding concepts, i ll start listening his videos..

[@MoneyWeekVideos]

Thanks - but any more comments about me being cute and my wife will force me to present these videos with a bag over my head :)

[@samuelspencer5047]

Lol tell her she does not need to worry she has your affections.

[@bennymarshall1320]

You can reassure her it's sarcasm ;)

[@kevinngugi154]

You Are such a good explainer man, I watch all your videos

[@AzhanAbdulRahim]

Tim, I've been struggling with the topics of derivatives in my MBA; listened to three of your videos - all beautifully explained. Thank you.

[@MultiGuiri]

Thank you so much! Tim is so talented at explaining the financial world to us.

[@femobasha11]

HD, well delivered, and you make it interesting. Thank you.

[@Harshamostwanted1]

Your explanation is simple!

[@sud1987]

Insightful video. Shame that the comments are riddled with trading adverts..

[@govindanvr7627]

tutorials so nice, i leaned someting from your videos.

[@johnny6ryefield]

beyond doubt the best financial education channel on youtube.. i start my day with checking for new vids from MoneyWeek. Only problem is, my girlfriend keeps going on about how cute Timis, and I'm fed up.

[@Martin-dw8zz]

Absolutely phenomenal video, you get so much information so clearly into such a short space of time. Amazing teacher thank you so much!!

[@RobertOSullivan]

Best explanation I found so far on the whole web, thank you. I have subscribed.

[@saurabhnaik5165]

Thank you Tim .. You ve actually simplified tough terminologies :)

[@darkbyte2005]

Tim this was absolutely brilliant explanation of options. Even after 9 years ago..

[@Naregmusic]

Your teaching methodologies are magnificent!

[@tehutimaat1647]

Say it again please say it again ..we all the way in the bAck can't Hear you ...

[@sarahakasera]

simple, lay man explanation, easy to grasp, good job Tim!

[@patrickmwangiager2481]

You are a master teacher. You make this topic look very simple

[@ozymandias8523]

Good sir, you deserve my respects, amazing lecture, it took me a lot of time but finally ai managed to understand the concept behind calls and puts, I really thank you so much.

[@samuelspencer5047]

@10:42 I appreciate the acting Tim when you rub your eye as you portray the caller "I want that 1000 shares." Lol to "in tears I hand them over".

[@AlinaSvid]

Thank you so much! Your explanations were very helpful to understand options!:) saved lots of time!

[@deeptichawla5218]

superb explanation:) loved it .. best explanation of the concept of options

[@OneScapWolfPack]

Fantastic video, I don't comment often but I can't say enough how helpful this video have been.

[@timsynnott321]

Great work mate, well explained in easy to understand language.

[@CatineSkyi]

Thank you MoneyWeek! I love your videos! You're the best online guide!

[@epcortek11]

Excellent video , well PUT my friend !

[@sagarsingh1234]

Wow, amazing clear explanation! Good job Tim!

[@Wanrli3]

Very good explanation!

[@r.arodriquez4392]

Thanks for the information in all your videos. I need all the help I can get. You make very simple to understand 🙏

[@thamilinikulasingam9573]

thank you, I finally understand options!!!

[@srivastavaneeraj18]

Thank you for such informative videos.. Can you also please help to provide more details on Warrants.. If there is already a video on warrants, please help to provide the link..

[@B0redAtUni]

Hi Tim, super explanation. I've been struggling with Swaps and Options on my L1 CFA. Excellent video and clearly explained, please keep posting these vids!

[@chrisfilet]

Hi John did you end up passing your CFA L1?

[@timomuro9513]

“If they do, they’re a lunatic” great vid!

[@mk25dec]

Amazing explanation, made it so simple, excellent work ....Please keep posting ...

[@coxmello]

This was extremely informative thank you very much!!

[@oluatutube]

You do a fantastic job in your video's - I'm a fan - Happily subscribed!

[@Miclariez]

Simple and clear explanation!

[@markizmendez6431]

Dear, Tim, Thank you for your videos I just would like to know could you explain the Long call put altogether with the Short call and put topic, Thank you & kindest regards

[@withyoulala]

thanks for the video, im taking exam soon and your video has a much better/clearer explanation then reading from my text book. Zzzzz

[@davidalen9279]

brilliant teaching. thank you sir.

[@jthusany]

another great job

[@DiscoverPianoTV]

thank you again! great presentation and explaination!

[@hohiha1000]

THANK YOU !!! YOU ARE ALOT BETTER THAN MY PROFESSOR !

[@JamesTaouk]

God bless you. Thank you for your time.

[@MoneyWeekVideos]

Good idea - I will add that to my list. Tim.

[@bhumishri]

Thanks Tim for the video, makes really easy to understand.. I felt the maths was off at few places..(I may not have understood it,, so please correct my understanding) 1. In Call option, at premium of 30pound/share the option would cost 30pound * 1000 shares = 30,000pound, i did not get how you came with 300pounds.???? 2. On expiry of call option, the holder will make (50-30)*1000=20,000 and not 200,000. Were does 200,000 come from? 3. Same on the put option, the holder will make (100-30) * 1000 = 70,000 and not 70,000.

[@linima69]

hey hi, the pounds to the small to the small p conversion is 100(p) = 1 pound. so 20000(p) is 200 pounds

[@arthurromanov]

+Hemamalini Venkat crap this is the part I didn't understand... Tim called it 4 when it was 400p, I actually still don't get it but just probably so tired (and already drunk of my wine) that uhhhh.... fuck it, tomorrow is hopefully another day =) Tim - thank you very much for the videos... hope I can reach out to you somehow - I have ideas.... I have investors... I have speculators =) Mother Russia =)

[@JinGwee]

Hi, nice series of videos. Can you explain how the leverage system in FX works, from the perspective of the broker, or the exchange?

[@MJALI96]

Question: The holder of the “paper” is limited to only losing the premium paid in a put/call option, while the writer has an unlimited risk with the call option, as the stock price can keep rising, correct?

[@EN4ORC3R]

great video. thnks

[@joevideotogo]

I now use entry setups that derived from the CME floor traders (now part of CBOT) which use pure price action and I must say it has sorted my trading out. The strategy is the Pipdaq setups and are simple in nature and not very subjective either...

[@anny23108]

The fact that the premium for the option changes means that once you have bought the shares you have to supplement what you have paid already or that new buyers will have to pay more - premium wise- for a put option if - 2 weeks from the option being issued- underlying's price has gone down? Thank you

[@vedantsgoodlife7302]

That is one great video... quite informational. Thanks a lot

[@G00n3r4Life]

Brilliant explanation. Thanks

[@jdmaryanne]

you are an awesome teacher!

[@abhinavitsmebellamy]

Thank you, for this. Great video!!

[@Sendrassil]

Regarding the call: the 50 are called payoff and the 20 are the profit since profit = revenue - expenses / 50-30

[@Mr3169Leo]

fantastic explanation, thanks

[@john-blair]

Thanks. Very well explained.

[@inspiron645]

thank you, i learned the basic right now :)

[@thekidinventers7323]

I have a question and had been trying to find the right answer. When they do a secondary offering and at the same time they issue stock warrants to be exercised at the price..do they dilute/issue more shares again when warrants are exercised?

[@topshota003ah]

Very Clear Thanks Tim.

[@MrLeo625]

Very well explained 👍🏽

[@zhubarb]

HI Tim, from minute 19 onwards you mention how the premium of an option changes as the market price changes and that most of the time options are not exercised but rather change hands at different premiums. What I understand then is that in this case traders are dealing with the future (derivative) of an option (derivative). So the 'product' changing hand is a 2nd derivative of the ABC share prices. Is this correct?

[@bacovasaimir7277]

Thank you very much for what you are doing great teacher :)

[@amithdilhan3103]

thank you very much

[@jango143ful]

id be in the bahamas! what a classic start. great videos.

[@andrewhedlund1]

Would it be fair to say that futures and options are similar but the only difference is that options can't be renegotiated? Also, thank you SO much for the excellent tutorials on these complex matters. This is how I spend my spare time!

[@mineshize]

thx sir for explanation

[@patilshreyas0009]

this was really good .,just realized i have wasted my 3yrs and huge money in the business school .,please if you can let me and the community understand the difference between american and European call/put

[@glenbrown4132]

Well and easily explanation thanks!

[@romanivanov2589]

Really good explanation. its a shame I haven't seen this video in my undergrad years....

[@esoteric_chaos]

Love these learning gold nuggets

[@binilana]

Just great! Even excellent!!! Thank you so much!!!

[@jmusic2024]

Amazing explanation

[@BlergleslinkVettermoo]

Good tutorial!

[@Latin_American_Economic]

I have a question. With options do you have to own the shares to write a put or call option or can you write either a put or call without owning shares.

[@samialsati8054]

bestttttttttt explanation many thanksssss

[@Lozgbwoi]

Hi Tim, yes your videos are good. Are you going to go into any more detail eg put call parity, combinations etc.

[@Harrybhatia16]

excellent explanation

[@JoeR.3221]

*question* So you have to own the 1000 shares in the first place before you can create and sell a call option to someone else??

[@jishaman]

Is it possible to Hedge your options or sell an option of another option which expires within the expiration of the original option?

[@carrad123456]

Hi, have you written some book or recommend for us.

[@FunnyLearner]

Great video!

[@michaeltai2964]

A good 👍 explainer on the subject.

[@eagle6792]

man you are a legend.

[@MoneyWeekVideos]

you got it! Tim.

[@skinny6669]

You are the KING

[@gauru2303]

love from Inida--- If you were a professor, i would have left my Pharmacy job and joined you as your student in the University...probably in the next life

[@kotsioscoolboy]

You should be my lecturer!!

[@CovertOpsProductions]

what class in college would i pick if i want to do the things that you make videos about?

[@fadialkhamach5616]

you are a legend ! thank u !

[@warren2398]

I think I finally almost fully understand options.

[@drukpakunley5659]

Thank ... I Thank you .. WE thank you for been A Instrument of Transformation..... GREAT FULL I AM

[@bennyyoung9842]

Amazing, thank you :)

[@ritakhan5293]

Thanks a bunch!

[@anthonywoods2785]

Fab as usual 👌