Option Trading Basics - Simplest Explanation

📣 FREE OPTIONS TRADING MASTERCLASS | skyviewtrading.co/3jrEcjn
Stock Options can be SO boring to learn. In this video, I explain what options are by relating them to something everyone can understand. And also, why they exist in the first place.
Watch this simple video to finally understand options that have been rattling your brain trying to learn.
☁️ Visit Our Site: skyviewtrading.com
🔔 Subscribe to our Channel: bit.ly/3BPWDC9
📈 Our Preferred Broker: bit.ly/3DZax6E
option trading basics
what are options
option trading explanation
stock options explanation
how to trade options

[@skyviewtrading]

🚨 Hey all, thanks so much for the great feedback on these videos! For those of you requesting more content, we put together an Options Trading Masterclass for you, 100% free. We dive further into our strategies and trading style. If you’re interested, check it out here - skyviewtrading.co/3jrEcjn

[@davidbillingsley3189]

Very well put together,beening new things can get confusing. You made it pretty simple. THANKS

[@jesshasnofilter]

YOU, sur, are doing the Lord's work. I have been agonizing over why I couldn't wrap my head around it. I literally said out loud, "I need a cartoon, explain it to me like I'm five", and the next video I looked at was this. In seconds you've translated years of verbiage into information for me. Thank you for that.

[@mgmorfijus]

Instead of watching some moron for 20min i came here and got everything eplaned super fast and acurate. Thank you !!!!

[@makeislamfutureistic77]

Yeahhhhhh....😆😆😆

[@alexpanturu1730]

Easily the most I’ve understood about options trading from any other source, thank you!

[@kevinho1922]

thank you so muchfor this! i'm dense as hell and I've been searching for a SIMPLE explanation everywhere

[@gaylepeterson4441]

Thank you for making this simple!!! I really appreciate it.

[@edwardfoster8886]

THIS IS EXCELLENT. I HAVE A CLUB AND HAVE TO TEACH ABOUT OPTIONS AND THIS VIDEO WAS EXCELLENT, LITERALLY SAVED MY LIFE!!! ALLAH BLESSS!!!!

[@skyviewtrading]

We're so glad to hear it helped!

[@mikeydurden]

Thanks for fast explanation. That took 3 40 minute episodes on options boot camp and you did it in 3 minutes.

[@skyviewtrading]

Haha that's awesome to hear. Thanks for the comment and stay tuned for more videos!

[@sikanderkhan8383]

It is quick , short and sweat video to understand options . Great work , thousand times better than taking a lenghty lecture to understand this option,

[@herecomesthefigfamily2407]

I'm loving this kid, keep up the good work..

[@romarioosborne589]

Quick, Clear and Simple. Thank you very much. Will def subscribe if all vids are this way

[@jordanbronner3752]

Wow 5 stars ! Amazing explanation now I understand I never understand other videos that explain nothing for a full 1hr +

[@braveharttrader4699]

Excellent explanation with very clear example - thank you. You are a great teacher.

[@reinhard7379]

Your presentations are easy to understand, easy to follow and lovely to watch. Thank you so much for the excellent work you providing to us. Triple A

[@skyviewtrading]

Thank you!

[@ryanburke5958]

Awesome introduction video to options. Thank you.

[@Yezir760]

I like this sky view trading videos. I understand cars better than I do houses and businesses so when they use cars as examples I am to understand better.

[@20subscriberswithnovideos88]

This is the best video on this topic I have seen thank you so much

[@billyjoel9313]

The video was great learned a lot

[@harivindran4426]

very well explain about option trading . Thank you for this presentation

[@franciscosoto8663]

I’m very confused with options still. If I am going to be an options trader, who am I in this scenario? Am I the shareholder, or the insurance lady?

[@overPowerPenguin]

The insurance.

[@easybullet3]

I always wondered what 'options' are. Thanks for a mega simple explanation ;) - next step: I want tof ind out what 'Futures' are !

[@peterneufeld2522]

Nice explanation!!

[@sheamusmettler8129]

So helpful man!

[@surajshrestha656]

Very good job in explaining Options. You made it very easy to understand. Thanks. You got one new subscriber today.

[@IvanPlayStation4LiFe]

Love it very informative

[@jithinmohan5099]

you deserves more views and likes. nice presentation man keep it up

[@skyviewtrading]

Thank you! :)

[@gaganpreetmaan8021]

Love the video. I sincerely hope people could explain the options like this. Very easy to understand and highly recommending to my friends.

[@skyviewtrading]

Thanks so much for the kind words! We love that type of feedback!

[@fortunemhlanga7651]

The best explanation ever.

[@dinanahdanafi246]

is there a recommended options broker that i can use? simple explanation by the way, cheers!

[@jordanbronner3752]

Btw I have no clue barely trying to learn this explanation is the best

[@rambo3870]

THANK YOU SO MUCH!!!!!!!!!

[@giannismacmillan3678]

Great job

[@alessandrobianco7183]

If I use stop losses I can pretty much cover myself against losses the same way as using options with the advantage to not affect my profits if the stock goes up. The only advantage of using options is that I can exit a trade at a much lower price point if the price falls. Is that pretty much what options are about? Great video BTW! I

[@eternity139]

I understood this very clearly, thank you. For those who say this makes no sense... keep trying, you will eventually get it.

[@tiamichelle100]

Thank you !

[@konstantinosbetos3988]

Liked the Glitch Mob in the end.

[@raagul4246]

Best vid for option trading

[@TheKingTVlmao_SUCK_MY_WEENIE]

thanks, this is a really great explanation

[@skyviewtrading]

You're very welcome!

[@kayjay9484]

Great video

[@Andolem]

You are amazing, thank you so much for your free educational videos, I should have paid hundreds of dollars to get this free educational tools. Thanks Again.

[@TheR0DFATHER]

Thank you! I've watched 5 video's in a row alot longer with less information,,goodjob

[@skyviewtrading]

Glad it was helpful! Thanks for the comment!

[@y2kcustomcycles]

good job

[@jimmyo878]

My first video with sky view trading and I Know that I am going to be in sync with this style of learning.

[@maxamedabdilaahi917]

thanks man

[@cyriaquesache9627]

Broo you the best

[@1927amy]

Hello, Sky View Trading, i am learning options and have been trading for 6 months now. still learning. what does this mean "exercise your option" (immediately sell your share) and sell at 125, but the stock price is 113, so how can we still sell at 125?

[@qasswaralkassam7712]

As the title says. THE SIMPLIEST EXPLANATION!

[@skyviewtrading]

Glad you found it helpful!

[@houstoniantexan2563]

Very well explained

[@skyviewtrading]

Thanks so much for watching and for the kind words!

[@Keychainjames]

😮 this was awesome

[@skyviewtrading]

Glad you enjoyed it!

[@becastanciu4530]

❤ so simple put

[@skyviewtrading]

Thanks for the kind words and for watching!

[@Pookiemdh]

WIth all due respect, the publisher of this video is obviously a very bright guy to explain this. But let me tell you, as a successful options day trader, all these explanation videos used to be so confusing to me when I first tried to learn options. I just jumped right in and starting studying the candlestick behavior and how they interacted with moving averages and bollinger bands, on a daily basis. After 3-4 years, I finally learned the patterns and techniques to effectively trade. The video is kind of like taking physics and calculous in high school when all you need is hands on experience in the real world. Why they make you take those classes is beyond me. So go get an options brokerage account, I recommend Optionshouse/Etrade and get studying very very very hard. It will take you as long as someone wanting to learn a brand new language and getting their masters in it. Nothing comes easy in life.. good luck.

[@elliottmoore4835]

I've been doing technical analysis for 20 years. If this video is confusing to people, they will never have the patience to wait for their signals.

[@trop7325]

you are appreciated

[@jeenapoon8866]

What is the meaning os exercise price

[@mbk928]

well done gj

[@shahidjis]

Nice explanation 👍

[@skyviewtrading]

Thanks 🙂

[@franciscosoto8663]

@skyviewtrading, when I am trading options, who am I in your example, am I “Flo”, or am I the guy with the car?

[@ObamanableSnowman]

The guy with the car.

[@utubebaddess]

Question for the first example. If i bought a PUT option, and the price went up from 125 to 132, how did i GAIN $700? The put option means that i sold it for a lower price than what it was worth at expiration. So i actually wont exercise that option. Please let me know if im wrong and why.

[@metallica1426]

What is the difference between this and a stop loss then?

[@shussing]

Anyone know what animation software being used in this video?

[@JuniorRodigan]

This is good and simple but also kind of incomplete What you see here (if you are the guy) is an example of a CALL OPTION ( which is the price going UP ) You CAN make a profit another way .... by the one placing a bet on the price going DOWN ... and that is a PUT Option.

[@danieljohnsopardenilla997]

What about the call option?

[@johnny14980]

The person selling the option is the person who owns the shares no? Why does it say that a person trying to protect their stock can purchase a put option?

[@derricktorres6824]

so basically if the stock price goes up, you profit little and if the stock price goes down you profit big, so either way youre going to profit and vice versa. is this correct? this is so confusing

[@FlavorOfTheMonthChannel]

Great vid. The insurance comparison makes a lot of sense. That's a Ferrari California not a Maserati!

[@skyviewtrading]

+Flavor Of The Month Thanks for the feedback! Glad you enjoyed the video. Shoot... if only I could go back and change the audio... lol.

[@pogmothoin1987]

Needs to be explained that you do not need to buy or own the stock to trade options.

[@BMXin702]

2:57

[@neil9658]

Isn't a good thing when you buy a Put and the stock price goes down? I'm confused.

[@sikanderkhan8383]

When you buy a Put you should pray that share price will go down

[@felixbell9299]

Why did you say if buy a put you want the stock to go down but when it went up the put holder is happy I’m confused

[@argon32155]

Does that mean that the person who is obliged to buy your stocks at the original price before it went down must buy all of it?

[@Th3Siam]

yeas

[@constancychen]

The picture in the beginning is a Ferrari California not Maserati :P

[@mikethecoolguy2301]

That was my first thought haha

[@bliglum]

Haha! Same here. But I was like "Eh, he's a stock guy, not a car guy"

[@nathanielvasquez1614]

For easy and safe trading on binary options without losing your money to your broker, this is the most legit solution==>>( *BinarySignals4u. Com* ). This is well tested and proven to work. I am using this trading stuff personally and so far the result is really impressive.?

[@hamzahamza7274]

This was great, I've been looking for "money trading options" for a while now, and I think this has helped. You ever tried - Winoorfa Option Olegroson - (do a google search ) ? Ive heard some unbelievable things about it and my buddy got amazing success with it.

[@LyubomirLalovMulti]

Just wonderful, I been tryin to find out about "are options a good investment" for a while now, and I think this has helped. Ever heard of - Jenameron Penny Smackdown - (Have a quick look on google cant remember the place now ) ? Ive heard some unbelievable things about it and my cousin got cool success with it.

[@halo99yo]

So you're basically splitting the losses or profits with another party. If so, why not purchase less stock to begin with?

[@Munir2204]

what is these type of videos called?

[@seanbrownsociety]

I'm still confused...How is it just a $500 loss in that case? Just cause you bought one $500 put option means that you can never lose more than $500 on your ONE HUNDRED shares of Apple? Like what does the value of that $500 put option become if the price drops to $113? I feel like a variable is missing...

[@KyleGerdes]

In the second scenario, wouldnt the guy be obligated to buy all 100 shares at 125? Im confused on that part

[@abhisekbiswas5063]

Car insurance could be the best example of Credit Default Swap instead of OPTION.

[@Geekyone2]

🤔🤔I get it now

[@banksbanks9471]

necessarily don't have to lose if you hold it , until it hits that price again

[@travisb8416]

This make sense but it’s not practical understand. You need to understand premiums and strikes.

[@skyviewtrading]

We have videos for that too :)

[@xerxesbrown8506]

What happens if the one who is insuring your investment doesn't follow through with Protecting you and your money If your stock starts to take a nose dive?

[@kathmandu604]

so the yikes guy can hold the stock without owning it to sell when the price of the stock goes up. Is there another video for this how this is possible please?

[@rah4254]

why would anyone trade options, then

[@BiGMoFFen]

Rah bigger gains

[@acextensionsinc]

🙏🏼✨🙏🏾💖

[@sirnunez7923]

or they can keep the stock, buy more with the 500 you gave them at a cheaper rate. Rinse and repeat they just keep thier shares and make money off selling contracts.

[@mr.vizard4015]

Still makes no sense

[@dostuffandthings]

o p t i o n s

[@colesmith5916]

@@dostuffandthings STOP ur confusing him

[@koldblaze6610]

Why is option trading regarded as so risky by people then?

[@skyviewtrading]

Great question! It's because options are more sophisticated. Traditional market education tends to be drawing lines on charts, finding patterns, and just flipping a coin to bet on direction. It's a little bit harder to dig into the option probabilities and statistics and learn how to trade them. But, the tradeoff to that is it's what real finance is all about. The best part -- we are humans, the smartest creatures on the planet and we can learn this stuff if we want to!!

[@joelow63]

Options is person buys 100 shares And pays someone else to take risk Ex 700 gain 500 option 200net Ex2 Stock loses U are safe Option person loses Person i option too is obligated to buy your stock

[@Leen95M]

couldn't get simpler than this. thank you.

[@seanbrownsociety]

I'm still confused...How is it just a $500 loss in that case? Just cause you bought one $500 put option means that you can never lose more than $500 on your ONE HUNDRED shares of Apple? Like what does the value of that $500 put option become if the price drops to $113? I feel like a variable is missing...

[@jgfunk]

I bought a put option. The underlying stock price has not yet dropped to strike price (it's much closer though) and there are 30+ days until expiration. I noticed that the bid for this option is now much higher than when I bought it. Can I sell the put for profit now even though strike price not reached? Would selling close my position eliminating any risk? Thanks

[@skyviewtrading]

Yes you can sell the option now for a profit. And doing so would remove your risk (because you will no longer have the position). For example, if you bought the option at 3.00, and sell it at 5.00, you would have a $200 dollar profit. You turned $300 in cash into $500 in cash. Let me know if that answers your question!

[@jgfunk]

This helped. The only question remaining is that when I went to do a closing order in TOS, it said my max loss was $9000+. However, I would think my max loss would be 0 since I am closing my trade (the put that I bought) and bringing in profit. Is that max loss using an assumption that that stock could drop to 0 and I would not benefit from that happening? Thanks again for the response.

[@jgfunk]

Just wanted to inform in case anyone else has the same issue. I reached out to TOS yesterday via livechat to see what the issue was. The answer I got was (and this is a direct quote) "the confirmation box cant calculate the the max loss correctly on a closing trade just does it like it is a opening order. you would want to look at your p/l on the activity and positions page to see". I just didn't realize that was the case. By the way, these SkyView trading videos are great.

[@skyviewtrading]

Thanks for sharing! Glad you got it figured out!

[@perryjaialai]

Yes

[@andy347]

Nice explanation. I think it would be improved if you add in some options terms like "puts," "calls," and "strikes" to tie it in to actual trading since those terms are confusing. - Ahh, I see why you don't. We go to your options trading lessons link, which teases a few things, then you ask for us to buy the whole training course.

[@miket2798]

Why am I so lost?

[@SiLoMixMaster]

You will find your way again Mike don't worry, chin up buddy

[@adrianperezramirez7052]

I seemed to have actually found it guys !! I mean a strategy that is easy to follow, profitable and consistent . with this strategy I have been earning thousands of dollars daily, i just hard to share this with you guys so you look into it, it's called the *Blended Model Strategy* created by none other than *Dmitry Vladislav* (vladislav@optionstrade .cc) a wonderful trading genius you can carry out your own research and thank me later .

[@nameless1724]

0:23

[@krazykevx]

I would like to buy 100 shares of Apple stock @$125/share right now please.

[@mandelvedry5930]

I don't believed in him but At first I invested and in days i got a return of good profit ,He honesty can't be compared to any other manager.

[@angelvillegas7359]

Sounds like gambling but with extra steps.

[@Bombchubowling]

The entire market is gambling

[@Dahmer_Jeff]

Huh

[@elmecanico4943]

In other words, derivatives

[@skyviewtrading]

Yes options are derivatives. It's just another name for it.

[@balabommaashok1232]

option super album

[@duqan9060]

Flo looks hawt

[@samjohnson9761]

SLOW the fak down

[@dan5119]

Not simplified

[@GretSeat]

Yeah, this makes absolutely no sense

[@beenmicrophone5817]

seems like a great way to lose money 🤣🤣

[@terrimac7993]

This explanation went too fast. You didn't make options trading easy to understand. There are a lot of missing pieces that I think you are skimming over. I have to watch it again. Slow down!