Options 101: EASY MONEY w COVERED CALLS - showcasing a real trade, and how I nail Asymmetric Bets!

[@XcessCapital]

2 things to know about guys like this. One, they will be the end of the traditional college education. Two, this amount of knowledge, disseminated for free, will make the world a more equal place. Thank you for being that (presumably) rich guy that doesn't just hoard your knowledge and wealth. I hope to be able to do the same at some point in time.

[@stevenrogersfineart4224]

I've said this for a while. KZbin University is just around the corner :)

[@johnpaulissa]

You're a rare find man, someone that truly understands how to behave sensibly and make rational decisions when others lose their head or have itchy trigger fingers. You are truly showing us how to earn and, more importantly, learn. Keep it up :)

[@InvestAnswers]

Appreciate that. Cheers

[@ommpeter]

A little complex but I'm gonna rewatch a few times. These are gold man and you're a champ for making them

[@InvestAnswers]

honored Peter. Hit me up w any Q's. I am going to do many follow ups - a starter vid (as I got some complaints it was too complex) and a 102, 103, 104 etc - you will all have PhD's in Finance soon.

[@throwaway-ds6yg]

@@InvestAnswers also very interested, thanks!

[@smokeymonjes8575]

@@InvestAnswers thank you so much man God bless you

[@nageshc491]

@@InvestAnswers You are the real deal James.

[@danielking779]

@@InvestAnswers Yes, I'll watch (and re-watch) them all. Thank you. I'm learning as fast as I can.

[@johnnysworthout1640]

I just want to say I love your videos. You are honest, intelligent and you really are helping this community. You don't grift or sell your videos with hype, you just stick to the math. I am an Amateur stock/crypto guy but I strive to learn from you! Please keep making these videos. HUGE thank you!!!

[@InvestAnswers]

I appreciate that!

[@danielking779]

Big +1 on this. Thanks again James.

[@Natasha-tq1qm]

Just watched this for the second time after a few days and finally makes sense 🎉 will watch the whole series again and start paper trading. Thanks for such amazing content James!!!

[@briankirk9406]

I feel like there is hope for me to learn something that was formerly out of reach. I really like your style of teaching. The way you give insights of motivation on each side of a trade makes things clearer. It is obvious you have experience and true experience is what is lacking from other influencers. Keep doing what you are doing! :)

[@InvestAnswers]

You are so welcome!

[@Max_Thunder]

This example and the knowledge you have provided is an outlier in the sea of you tube coaches/traders that are just trying to sell a course and and take your money. Thanks you for all the good info and most of all demonstrating integrity.

[@SelectiveLabs]

I came across this video and it’s interesting to see the evolution of you James between now versus then

[@garyb455]

I cant tell you how good your videos are, so in depth and informative. I have always kept away from options but you do make it sound very simple. Thanks for you work and thanks for sharing.

[@InvestAnswers]

Glad you like them!

[@bobsmythe9949]

I have traded bull put spreads but lost my nerve and had kids so couldn't handle the risk. After watching these types of channels for years now, you stand out so well done and your attitude of sharing your priceless experience is awesome.

[@InvestAnswers]

That means a lot. Time for you to get back in the saddle, start small :D - however a crash will happen in 2021.... just not sure when. But when it happens it will yield great opps. Cheers for the super kind words.

[@UniversalDust]

@@InvestAnswers What kind of crash ? Like as big as the dotcom crash? How low in your professional opinion do you think btc will get ? May I ask what your lowest strike is set at from now until the end of 2021?

[@X1011]

13:55 Nice! Don't know if you know this, but that kind of random sampling is called the Monte Carlo method. 📊

[@GafferNate]

Would love to see more of these options videos James this is great KPM!

[@mert3009]

Hilarious! “I do a lot of naked stuff “ :)

[@ApakukiNayacakalou]

Gave me chills when he said that! Scary stuff for mere mortals, this guy is a genius!!

[@happydays8093]

Watched for a second time and it's now making more sense. Thanks so much for the wonderful content!!

[@robertgrayraleigh]

This is pure gold for me, James. Thanks much. After I watch this another ten times or so, I'll look for Options 201 or 102. Hopefully you got enough positive feedback that you made this a series. You're a blessing, bud

[@mattoc2965]

Thanks so much for this comprehensive breakdown. You have a rare skill to explain things in a simple manor without using jargon. Shows your true understanding. Question, how do we see your models?

[@TheEternalRighteous1]

Hi James, could you show us how the calls actually interact with the market? I mean the strikes and how they capture funds from a stock price.

[@bobsmythe9949]

Good stuff. Options theory and TA are relatively easy to learn but my challenge has always been the fundamental analysis (macro/micro) as I'm not from the finance industry. I think a lot of us would pay someone to provide that side of things, hint hint...

[@InvestAnswers]

I get the hint, you are not alone. Folks want to see my trades live. Working on a system for that but people need to be acutely aware of the risks.

[@ApakukiNayacakalou]

@@InvestAnswers gave me shivers when you said "I do lots of naked stuff!"

[@xanderlinhares]

This is my favorite of your videos so far. Please keep the education coming!

[@InvestAnswers]

Thank you! Will do! Cheers

[@HarveyMushman]

Thank you for what’s basically free education. This is a good paper trade exercise for the next couple of months, since we have uncertainty about a possible market correction. Wouldn’t want to loose real money because of that.

[@InvestAnswers]

Yes I expect a market correction also so I'm moving to a lot of short positions and cash

[@jimschofield8734]

...."I do a lot of naked straddles and strangles".... Hehhehehehehehehehe.

[@InvestAnswers]

OMG yes on re hearing it - sure came out a bit funny.

[@nsgaminobrian]

No dislikes!! Proof that the quality of the info is awesome!

[@InvestAnswers]

Thank you for pointing that out. Only four of my videos have 100% positive likes. Sometimes I touch on subjects that hurt peoples feelings and it causes them to react badly especially around sensitive issues like storing crypto, shorting gamestop and such. But I come from a Pareto universe so even if 20% were dislikes it wouldn't bother me. As long as 80% of people like it :D cheers

[@nsgaminobrian]

@@InvestAnswers That's true, some people cannot be objective because of their feelings, Thanks for all the information, I'm learning a lot.

[@Fieldeluxe]

I understand most of what you're saying, certainly in theory, it makes sense. I do get quite perplexed when I actually log into an exchange though. What am I looking at, what every icon means and what the candles actually mean, why would I change the view from candles to a line, whats the difference. It's a bit much when you're used to just buying and selling crypto with a literal "Buy" and "Sell" button with the current price and graph right above. You would consider that simplistic, and it is, whats the best way to learn, is every exchange different, what are the common components and how do you operate them. Just letting you know what I struggle with. Great stuff though I'll not miss any videos from here on in, cheers!

[@HumphLiu]

Thanks for sharing this - I’m just dipping my toes into options and am hoping I can learn to do this consistently to replace my employment income. 2021 will be a great year for learning!

[@InvestAnswers]

Glad it was helpful!

[@desmorris2193]

Sir you may have one of the best investing channels on KZbin.

[@InvestAnswers]

Wow, thanks

[@nwoods7959]

Can we access your tools? Is that a paid member thing?

[@iwin4985]

Thank You. for me It's a bit over my head, but I can always rewatch it again and again, (and I will). Thank You for taking the time to make videos for us.

[@InvestAnswers]

You're very welcome!

[@MriPodtouchhelp100]

Love your videos, can’t wait for the more advanced strategies!

[@InvestAnswers]

Glad you like them!

[@whimsythecrypto-hippy-wolf1900]

Lol James! "Will introduce u to naked strangles and straddles - if you have the appetite!" Hahaha that made me giggle

[@j.reichert2027]

Great channel! Thanks! How much time goes into research vs actual trading? How long do you generally stay in options/calls/puts? Interested in your spreadsheets/models to evaluate your positions before you trade. NS. Video on your background, jobs, trade successes and failures, whether retired or not, etc would be interesting. Keep up the great videos.

[@InvestAnswers]

A life time. We never stop learning and have to continually stay abreast of all that is going on. Market is getting very frothy and irrational so more than ever you need to keep your finger on the pulse. I am slowly hedging my long positions with shorts and moving other positions to cash.

[@milesvmusic]

this was great info, a little complex, a few more examples would be amazing! thanks

[@InvestAnswers]

Noted!

[@shehandias8958]

Great video explaining the basics of covered calls. Looking forward to other options videos

[@InvestAnswers]

Awesome, thank you!

[@ChintanCG]

Great video.. I've always wanted to start with options.. Covered calls seems to a good place to start

[@InvestAnswers]

They are! But please do your homework. Ping me with any ideas or Q's. Cheers

[@whimsythecrypto-hippy-wolf1900]

Thanks for this James! I would love to see more of this kind of trading instrument info video from you! It is a whole new language to get used to and u do a good job of explaining it in a way that I can understand..Cheers!

[@jkoslosky1]

Thanks for explaining this so well! I like you keeping it simple and clear.

[@InvestAnswers]

You're very welcome!

[@cyberdoodle7590]

Awesome. Covered Calls and Selling Puts. Thanks for sharing your knowledge. This information is so hard to find.

[@InvestAnswers]

Glad it was helpful!

[@DukeFan99]

thanks! Really interested in miners. Just took a look at the hut 8, criminally undervalued! looking forward to hearing what you think

[@InvestAnswers]

Been researching them and MARA. can you answer me a Q - why did MARA buy Bitcoin when they mine it? Or are they simply not good at mining? And where did they source the $150M from as a year ago they only had $6M on their balance sheet?

[@rastafasta100]

Great content, could you cover how you setup your spreadsheets as well? Ty!

[@InvestAnswers]

I have so many models on spreadsheets - which ones?

[@michaeltoppo9794]

Thank you! Find your content extremely valuable

[@nicks1137]

I wish I knew enough about trading to take advantage of this mans knowledge, I feel he is 100% real and sincere in what he is teaching

[@InvestAnswers]

Of course I am :D - I literally put my money where my mouth is :D

[@planesailing6919]

I feel the same way. I’m determined to learn as much as I can.

[@kellyinterrante3884]

D you use the SMA or EMA when looking at moving averages Do you look at 50 day and 200 day? Thank you

[@whimsythecrypto-hippy-wolf1900]

Knowing my exit points before entry is something I struggle with the most

[@limitlesspharma2124]

This is out of my comfort zone, but I appreciate it anyway!

[@InvestAnswers]

It's worth taking a second look at because it's a sure fire low risk way to make good safe money.

[@KC-ws2dn]

Hi James! Patreon member here! Thank you for all that you do. I've learned so much already. I am trying to re-create your spreadsheet to practice the calculations. However, it would help if you could share the options model. Would you be able to? Thanks! =)

[@jirehsy9158]

Oh..i just stumbled here today in this segment..wooohhooo..🎉 thanks james..

[@ikust007]

Merci beaucoup James . J’ai décidé de tenter de comprendre .

[@jetsmasher]

You’re a master ! Thanks tremendously

[@InvestAnswers]

You're very welcome! Very humbled.

[@nwoods7959]

more options! this is just about right! Not too basic nor too complex

[@InvestAnswers]

Perfect thank you for the feedback on that.

[@heartysailorman5719]

I’ve heard these are safe way, but I couldn’t follow the 103% profit. 😢. Really appreciate the work and style. I’ll. Review this more. Excellent point on the Paper trade as a Must.

[@josephlee9057]

love your content. do you have any upcoming options trades that you're open to sharing so we can trade with you

[@InvestAnswers]

always, Working on a system to share ideas and trades, for that but people need to be acutely aware of the risks.

[@健身与冥想]

Great content! Finally I am learning about calls and options after I had excuse (it's too complex and difficult) for so long. Thank you so much for the great great content!! One thing I don't get it after watching it twice: how the cost of call for selling the stock at 22 is considered? Or is there a cost for that?

[@michaelwellner6292]

I will paper trade till I hit 90% and then try the real thing and thanks so much for all you do ! When I get what I need to retire I will support you as much as I can you do a great service!

[@erichter66]

How did it go for you? This example seems to be more of a home run than a typical trade, that could be found every month or so.

[@HansWurst-rl4gf]

Yeah, how did you do?

[@dmitrynovikov7933]

Excellent video, James. Just started to learn about this. Are you obligated to keep the shares? Let's say the price goes down below $22 and you confident it will keep going down, can you sell the shares and buy back at lower price?

[@samanthazone7128]

just signed up for your Patreon capitalist. Will need to watch this vid a few times

[@toombz11]

Do you have a patreon? Your videos are top quality.

[@InvestAnswers]

I don't. But thanks for the idea.

[@toombz11]

@@InvestAnswers defiantly make one, I'll give you money for the time you invest into your videos.

[@InvestAnswers]

@toombz11 thanks so much for your support! Just got a new Patreon account: www.patreon.com/InvestAnswers

[@PostSomething]

Hi mate thank you so much for your content. I would love to learn your method. I have to say this video was a little over my head. I usually buy etf and crypto but this video was difficult for me to understand despite that. Maybe if you broke it down and explained it a bit more it would be easier. Also do you have a discord server? Thanks again for your phenomenal content

[@InvestAnswers]

I will do that. I don't have a discord server but I will look into it

[@K_Villain_]

Hello James, Thank you for these types of videos! I had a question when buying a call how far out do you give your self till it expires? sorry im new to this and might not be asking the right question. Thank you James!

[@rodsalvador3608]

I bought LEAPS in SAVE. They have a relatively pretty balance sheet.

[@acuchi]

Just about right. Great video - as always! Thanks

[@InvestAnswers]

Awesome, thank you!

[@davidantl3826]

Hello! What books would you recommend for the start in options?

[@TroyConner765]

Please more of this - more advanced from this

[@InvestAnswers]

You got it - and thanks for watching!

[@Spencer-to9gu]

Great content! Thank you! In your example, do you sell the stock and buy back the contract when it hits $22? If not, don't you run the risk of the stock price falling before expiration and reducing or eliminating your gains?

[@InvestAnswers]

I will probably just close out stock when it spikes and then buy the calls back on a dip. Alternatively I could wait for option expiration and they just take delivery of my stock (I do nothing)

[@mugentuner]

Great content. I'm a sub. What would you recommend as stock buying platforms for international investors?

[@scottdorrofield3789]

Thanks for the great content. Were there the promised follow-ups to this video? I searched for 102, 103, 104 etc. but couldn't find the series. Thanks in advance.

[@dw4258]

..weird.. I was thinking bitcoin mining, ARB,Riot, Hut8 then you literally said it. It's a sign I need to learn call options. Will subscribe and try follow your help to the word. Happy to work together, think there is an obvious hedge here.

[@InvestAnswers]

When I analyze the mining companies it paints a very scary picture. I was interested marathon because they spent $150 million on bitcoin but I don't know where they got the money and their cost basis is $32,000. Will continue to dig.

[@LoColeLGND]

“I do a lot of naked straddles and strangles.” Yeah you do

[@galacticarchitech]

Thank you for this video. Is there a place to download your slide shows? They are so helpful.

[@garysmith3777]

Thanks, I have been watching your recent stuff, so thank you. Having missed out on some of the basics this popped up on my feed. I was wondering, would you every stop loss / sell the held shares if it tanked too low or do you just take the pain for the duration of the contract?

[@mert3009]

Great video! I’m after the painting on the wall! Painting on options101 video :)

[@InvestAnswers]

Wonderful!

[@mert3009]

@@InvestAnswers who is the artist??

[@jason-xz4er]

Please james can you please tell me why when your talking about buying Tesla at $200 and selling a covered call and it rips up WHYYY are you not mentioning rolling the option and continuing the trade??? Thanks love your work!!!

[@grantroberts4231]

very interested in this topic but this was a little over my head. can you recommend some other videos or maybe a book that explains options trading even more simply? what’s quant? really enjoy your videos. keep up the good work.

[@InvestAnswers]

Quant is Quantification using my own pricing models and calculations. Will dig. I just know tis first hand.

[@frv7829]

What about when the ‘ Market Maker’ was your other side..? Market Maker will always hedge his position.. Who will lose if you gain? Or Viceversa - who will gain if you lose when is the Market Maker filling your order?

[@Ducotevision]

Great information... could you go over a “roll” because someone like myself... wants to keep the asset and don’t truly want to sell the asset being held. So learning how to roll the call would be greatly appreciated. Definitely understand placing it out of the money.

[@InvestAnswers]

You mean what I refer to as roll ups? Sure I can do that

[@Ducotevision]

@@InvestAnswers yes sir! That’s what I meant! Thank you

[@Toktokmokki]

@3:34 you say Sell the call but you mean Buy the call

[@djXCEmusic]

Would hate to be on the other side of your trades! Great work man!

[@InvestAnswers]

Remember it's a zero sum game. Thank you for your comment

[@TheFeroz3441]

in selling covered call it is a bearish strategy what i understood . so i will want the price of stock to remain under the strike price at the expiration. so the option expires worthless and i keep the premium. so at the expiration if the price goes up above my strike price , the buyer of the option wins and i have to give away the stock. you said if the stock fells 20% profit is break even ! got little confused . thanks if you like to clarify please

[@2menandapig718]

Fantastic videos! Any of your spreadsheets available for download?

[@UniversalDust]

Too complex for me as I'm a beginner who had to look up what a covered call is...I'm still not sure. Does it only apply to ETFs? Maybe your target audience is not me but I thought I would comment to let you know in any case. Thank you for all your efforts

[@ShaadHamid]

Haha who knew investing could be so sexy? The naked stuff sounds quite kinky.. strangles and straddles 😂 On a serious note, thank you James.. you along with Ben Cowen and Sheldon Evans have been a Godsend to me this year. Please keep up the great work. Happy new year to you Ser and look forward to more amazing gains in 2022!

[@eligonenuts3766]

Great job on all your research and putting it to paper. takes alot of dedication and discipline. I appreciate it!! subscribed. I do have one question though. When will the Etherium ETF be coming out? or is it out already?? def buying some options!!

[@InvestAnswers]

No, there are no bitcoin or ETH ETFs as of yet. It is largely due to the unregulated nature of bitcoin and the cryptocurrency market, which makes the bitcoin market easy to manipulate by investors with large holdings. The U.S. Securities and Exchange Commission (SEC) has to approve and they dont know which way is up right now.

[@alltimeguest]

what data source u use to feed options data to google sheet, thanks.

[@IhsaanTyalor]

I would love more information on how to buy long calls on bitcoin. Thank you

[@InvestAnswers]

Check out my videos on MSTR for example - a good teaser kzbin.info/www/bejne/Y3rOZXh5Yqyah7c

[@eisen369]

You are a bit mysterious but at the same time super cool. Nice videos and greetings from Germany

[@InvestAnswers]

Geheimnisvoll! habe das noch nie gehört. Ich bin so froh, dass dir das Video gefällt.

[@AmazingProspectingLetters]

You said you use tools to run simulations and to research. What are some or all of them? Thank you very much.

[@petejames4672]

Omg going to try this but , my head is scrambled ... paper first like you said .😮

[@allenw9746]

Nice content. Still a bit confused how to make that money with little risk and high reward. Maybe after the explanation, some screen share of real time paper trading would be nice :)

[@InvestAnswers]

Noted!

[@evogreen81]

Is it correct to take the 219.30 and count it as profit when you also use it to take away from your initial investment? I think you can only use it as one or the other. Count it as profit and not take it away from your initial investment and then your profit is 77.4%.

[@Search4infinite]

Hey James , we need more on options ... Please please please ...

[@madiz6190]

What I don't understand, why does the profit relate to the outlay only and doesn't include the margin, which is a cost for you as well?

[@full_disclosure_now5844]

It's the 3rd time I watch this video. Amazing. Love from Italy

[@InvestAnswers]

Glad you enjoy it!

[@dl7239]

Very helpful. Would love to do one with you on Patreon Capitalists.

[@craigbrick2249]

you need to make an options trading course, id imagine it would be inline with your goals and youd make good money doing it hope to see it soon i know id buy it

[@suertepanda]

Thank you, could you consider doing a video on MARA? They also put a bit of Bitcoin on their balance sheet.

[@InvestAnswers]

They sure did however I do not know how they came up with $150M. last I checked they only had $6M in assets on their balance sheet. Trust but verify :D

[@jaisengil3864]

I am a bit confused on the price breakdown @ 15:33. So basically, you bought $1744.00 worth of stock (100 shares) for $872 with a margin of $872. Then, once the stock price went up to $21 a share, you sold all the shares for a total of $2100.00 AND sold your $22 Calls for total of $219.30. Gross = $2100 +$ 219.30 = $2319.30 Expense = Initial $872 +$ 872 Margin (after you sell?) = $1744.00 Net = $2319.00 - $1744.00 = $575.30 Profit. Percent Profit from Buying Stock = ( $2100 - $1744)/1744 = .2041 -> 20.41 % Percent Profit from CC = ($2100 - $872 - $652.70)/(872+652.7) = .3773 -> 37.73% Where is my train of thought wrong? I don't know where you got the $675.30 @ 103.46% Profit from. I may have misunderstood the details of how the money is flowing...

[@rpguilfoyle]

Just getting my head around this. The 103.46% is from Profit/Net Cash Outlay ($674.30/$652.7) but I think you are right the total should be $574.30 Profit. If correct it should be ($574.30/$652.7) = 87.9%, pretty decent return using margin money and very reduced outlay of cash.

[@cm2843]

Great video! Thank you for sharing your knowledge and time with us, much appreciated.

[@InvestAnswers]

Glad it was helpful!

[@r0d851]

Re-reviewing this, probably ready to get one right

[@nwoods7959]

YES! MORE OPTIONS, WE HUNGRY, BIG APPETITE ...... Where is the patreon?

[@InvestAnswers]

Working on it!

[@LucasCanuck]

Hey James, any chance you could share your Black Scholes Model with the AI community? Thanks so much!

[@TheBlame416]

more of these please!!

[@JustinBirtwell]

I love James but I just ran the numbers myself and calculate a 77% return, not 103%. It looks like he is including the $219 twice by both reducing the cost basis and also increasing the profit.