The One BIG PROBLEM With Options Trading (Important)

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When learning about the world of options trading, many advantages over simple stock investing emerge. These advantages include:
1) The ability to control larger position sizes with small sums of money (leverage), leading to potentially large returns without a large account.
2) Flexibility to choose options strategies for any stock price outcome (increase, decrease, range-bound, or a big move in either direction).
3) Customize probabilities of making money (many options strategies can be structured to have a high probability of profiting).
4) Options are short-term in nature, which means we can be more active and involved with our market positions. Passive investments are quite boring.
But when we learn of these benefits, we can be quick to dismiss traditional investing approaches altogether, which can have disastrous financial consequences. (Check out my other channel which features videos on broader finance/investing topics here: ‪@satoshiorange‬ )
Options are specific financial instruments with common use cases, such as:
1) Reducing risk on existing stock positions, or an entire portfolio. In this case, options are used as a transfer of risk, meaning we put on a position that reduces our risk, while the counterparty to our trade is putting on a position that increases their risk.
2) Gaining leveraged exposure to specific stock price changes with limited downside if we are incorrect about our predictions. In this case, options are being used to speculate.
Speculating with options has benefits over buying stocks on margin ( • Buying Stocks on Margi... ), because if we fully leverage our accounts in a margined stock position, we can lose everything if the stock price falls less than 100%. With option purchases, we can never lose more than we allocated to the position.
But there's a huge problem with options trading as a sole approach to building wealth: options are not a store of value.
The best and most sustainable way to build wealth over time with a high probability of success is to purchase assets that serve as a store of value. A store of value is an asset that retains or appreciates in terms of purchasing power through time.
Since options are short-term financial instruments that we cannot just buy and forget about with a high probability of not losing money, options are not a store of value.
By abandoning traditional passive investments in assets that serve as a store of value, we run the risk of not seeing any growth in wealth or purchasing power over time, which is the entire point of engaging in the markets.
By allocating capital to stores of value, we can build a portfolio that retains or grows in purchasing power over time, which allows us to consume more goods and services in the future than we could otherwise afford by consuming our earnings right now.
The purpose of this video is not to say options are bad. They are very effective at accomplishing what they are meant to be used for, but they should not be abused. In my opinion, options should be viewed as a complement to an investment portfolio, but not a substitute for investing in real assets.
Please let me know in the comments if you have any questions, and please share your thoughts on this topic as well! Thanks for watching.
==== ADDITIONAL RESOURCES / VIDEOS MENTIONED ====
Options Trading for Beginners (The ULTIMATE Guide): • Options Trading for Be...
Credit Spread Trading Plan (Rules-Based Options Trading): • Options Trading With C... tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.

[@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 Food for thought! I know I completely dismissed everything besides options when I was getting started, but I think that's a big mistake long-term. Options definitely have a place in my portfolios and I will be trading options for my entire life. There are a few very specific ways I plan to use them going forward, which I will make a separate video on in the near future. What do you think? What's your options trading philosophy? There's no wrong answer. -Chris

[@jadenkwek]

Super long term mis-priced leaps where you think the chance of it hitting the strike price is much higher than its delta, obviously don’t do just this though. I’d still prefer to have more money in stocks than leaps though even though the returns won’t be as good if you’re correct. LEAPS + lower returns + high position sizes > Short term options + higher returns + low position sizes

[@mikemikel654]

Could you make a living just on option trading?

[@MoltenMouseMetal]

No wrong answer, eh? Casino-mode activated :) Who needs online gambling sites when there are SPY options expiring three times a week!

[@northeastbirdsmore2281]

I appreciate your teaching method ( very clear) and logical. Subscribed on both ch.

[@joevillarreal9953]

Yes I agree. I figured out options trading is NOT for long term after I bought strikes longer than a month. I made really good money then I watched it dwindle down by the end of expiration date. That's when I knew that I needed an exit strategy with minimal money used

[@sharidass1408]

I disagree with you because you could be selling PUT spreads on awesome stocks and get all the upside and limit your downside. I was a stock investor and moved on to a 90% options trader. Now I define my risk more clearly. Love your content. I have been doing options for 2 years now but there is so much more I learn from you every video I watch. Thank you so much

[@Sodajunkie]

This is an important and well-explained video. A little short-term success with options can be our worst enemy if we let it lure us into putting a large portion of our savings into options trading. Trading small and often with options and combining it with other financial vehicles will be much more satisfying in the long-run. Good job, Chris.

[@ravisankark526]

I agree with you completely. But, we should have sufficient account to grow in stocks. That is the reason most of the people do options to grow fast and then they can invest in stocks or index passively. I am also here for same reason to learn options.

[@kly25]

Hi Chris, I’ve been trying to learn more about option trading and their strategies. But every time I try to learn from KZbin videos, none of them make more sense than your almost three hour long video for options for beginner. That video of yours hit me good to the point I try to catch up watching your other videos, but I must say that the current or recent ones you did- I can understand a lot better than the older ones. Maybe it’s like you say the new videos you did are slower paste and more detail (more tutorial graph and examples and the platform you use), and overall just more understandable. Yes, I’m a definitely still a rookie at this and I can’t wait til you make a new video on your option strategies. I watched your old one on option strategy but I can’t seem to fully absorb it. I really like to say thank you for all you done and I appreciate how tutorial your new videos are (even though you had videos done before and still make a new one because you know you can be better). Man, I’d love to learn more!

[@TheNextNotch]

I've been trading options since May and have made a good amount of money from them, much more so than if I would've just day traded the same stocks. I have found that identifying opportunities is the most important aspect of trading, which means that fundamental and technical analysis both need to be there. You need to know what the company is about as well as how its stock moves, and pay attention to the news. Make random bets and end up begging. Just like when I was investing before, the fundamental picture stays the same.

[@simplymoney2287]

lol just wait till the federal reserve's supercharged market runs out of steam. It's easy to make money when its flowing in the streets, but 2020 is anything but normal

[@TheNextNotch]

@@simplymoney2287 We'll see. The Fed has gotten a lot tighter with their stimulus and interest since 2008. It's possible that they'll be unable to control inflation but since the whole world is going through it right now it's hard to say that any market will push another out.

[@1purpose.153]

I'm happy you're making an realization that there's so many doors to unlock when reclaiming money in stocks. Is there a specific strategy that you applied or created that could help other's in their attempts?

[@1purpose.153]

So the researching number 1 since the numbers and bio presentation gives you some info. I have subscribed to Montley Fool's and its 50/50 as far as insight and help. They're all business driven so its about them making money. No updates to make you feel forward informed. Once you have a true system working you make sure you share it to those still trying.

[@TheNextNotch]

@@1purpose.153 I mean I did strangles when tech stocks were booming and some condors when they turned, think FB, ZM, AMZN, the big boys. Right now I'm down though and my condor strategies and strangles are losing so I've yet to develop a new working strategy. The value of paper trading cannot be understated as I frequently use it to assess new strategies and how they might work. But it's very personal, the market is a lot different than theoretical options pricing and for a lot of people the real value comes from distinguishing that difference. You can certainly follow popular traders and do their stuff but once it rises to popularity it doesn't work anymore. You just gotta play until it works and then ride your winners to a profit really.

[@Juju_belle7]

I have been increasingly interested in trading options lately and I’m so glad that you made this video because it’s a great point. People on social media will make the daily options hustle seem so lucrative but they’re not posting their losses or the fact that they’re buying significant amounts of contracts to see significant returns (because they have the recurring income from courses or subscriptions), so the newbie investor like me will get excited and throw their hard earned savings in and lose bc we’re not experienced enough yet. Your 3h options course was more helpful than courses I paid for.

[@LogicalArtist]

Derivatives especially options are for trading and bonds/equities are for investing. Keep it simple.

[@gw1gw117]

Chris... I have been acquiring my portfolio for 25+ years as a long term investor. I never attempted to understand options or how they might be beneficial. I stumbled upon your videos accidentally but I am glad I did. You are absolutely excellent in the way you teach and present your material. I have watched a lot of investment videos and yours are awesome. I completely agree with your balanced and wise approach to investments. Thank you so much for b the time and effort you are dedicating to this endeavor. It’s worth paying for for such sage advice.

[@zeon_trl1326]

It’s very beneficial

[@jrsands11]

I use options primarily in two different ways. I’ll take a position in a stock with the intent of holding that stock forever. I choose stocks of companies I shop at, like Costco or Home Depot. Apple is another company I’ve owned because I use their products. Once I take a position invariably there will be a market correction. At those times I’ll look to add an option position on a stock I own. I try to take an option position with a high delta, like 70 or 80 & out 6 months or more so that in the market recovery phase I’ve essentially leveraged & supercharged my stock position during the recovery phase, so big down moves are exciting. Picking the entry on the recovery phase is an art. Another way i use options are short term, small dollar trades taking advantage of theta. I use index options for this, SPX primarily, where I’ll put on an iron condor on Monday morning using that Friday expiry... a 4day Iron condor with specific stop & profit targets & do that every week. There are other strategies I use too & it works well.

[@nnennanzelibe]

Hi Jim could you share some of the other strategies you use. Loved reading how you use options. Gave me some ideas

[@josue6131]

Great knowledge bro thanks for sharing, if you dont mind to share more that would be great

[@stephenpenney1502]

Yes it sounds like you have some great strategies!!

[@docholiday7758]

I consider myself pretty good at medium to long term TA. So I've been using options to supercharge this know-how. I pegged the Feb 2020 crash right at top with a straddle and closed it at the bottom, then went long stocks. That worked out real well. However, if you buy calls at the bottom, the ensuing decline in volatility as the market recovers will work against you. I've only been trading options for a couple of years and am looking for the best conservative option strategy to employ at bottoms when volatility is high. Straddles worked out great at the top as they're essentially self-hedging and volatility is typically low. I've been cautiously expanding my options repertoire. Maybe long stock at the bottom, supplemented later by long calls after VIX drops below 20. I'm not keen on strategies with unlimited risk.

[@Muzeishen]

Ah Chris I feel you have evolved. I’ve found out the same thing on my journey. I’d rather be long good companies as a first strategy. But options help in that strategy. Selling puts to buy cheaper. Selling calls to generate income. On futures, they allow me to go to a larger time frame and use the amount of capital that I want (going far out the money usually). I don’t have to worry about directional futures using a small time frame and getting stopped out, and there’s more data to rely on on larger candlesticks. Thanks for the video.

[@jackwilliams988]

Just saw your video ,couldn’t agree more , however what about the trader who needs income for monthly expenses and is trading on a very small account?? There’s no time to build a wealth machine at this moment until more capital has been harvested to afford a more diversified portfolio ,,,, what else can someone do at this point with this kind of scenario???

[@jackwilliams988]

What professional? And the phone number appears out of service

[@P8qzxnxfP85xZ2H3wDRV]

My personal ideal portfolio: - Put as much money into distributing dividend ETFs to fit your local tax-benefits. - Allocate 80% of your safe money to accumulating, world-diversified ETFs, put 20% into bonds and inflation-hedged bonds (mostly) in your currency. When there's a crash, transition to 90%/10% and when there's an insane crash go to 100%/0%. Go back to 80%/20% after a recovery. - Are commodities needed? If you don't trust your currency, then yes. Reduce the equity part to 70% and mix commodities into the 30%. - Last, but not least, any non-safe money you have and don't need for your retirement plans, just put it into your brokerage and try to build wealth on highly speculative trading practices like options. Everything goes here.

[@chucka2507]

There is nothing wrong with an options only or options heavy approach as long as someone is smart about it and doesn't use it as means to gamble and try to get rich quick. I have a relatively small account so trading a diversified basket of long and short positions in common stocks wouldn't generate sufficient average weekly income to live off of. However using a strategy that involves mainly short options spreads and directional trades in the futures market does generate sufficient profit to survive even with a sub $50k account. In the long run being net short options, particularly option spreads to limit downside risk, is a sustainable income generating strategy. The problem is most people new to options trading use options to constantly gamble on improbable moves. They are net long rather than net short options most of the time. In the long run being net long options is a money losing strategy. Once in a while you'll get the occasional 5x or 10x gain but most of the time you'll lose large chunks of invested capital; often all of your invested capital if you don't have stoplosses.

[@ktoyo7]

This is an AWESOME video! What I learned from this video: Options are a means of leverage to make money when a company's stock increases, decreases or stays the same. "Options are not a store of value..." Options are not a sustainable store of value as a long-term investment vehicle. [Somebody out there could challenge your argument, but the characteristic of time decay in all options, and the active management required on an all options portfolio, I think, would prove your overall statement from this video correct.] Thanks for this video. I'm subscribed. Now, if anyone read this whole comment, reply and let us know. Do you have an all options portfolio?

[@matthewplaza4533]

I completely agree and am thankful for your educational videos! Knowing the downsides of a tool is the most important part!

[@jsmegowan]

Started early last year and made decent returns through options trading, something I learned primarily through your videos. That said, took some losses along the way as well and want to continue learning. In "short", I've mostly moved away from the OTM long calls and 100% options. Currently playing with CSPs and credit spreads to collect premium, use that premium to buy shares, and build positions that way. Even using a smaller account, I'm hopeful it'll build in a "slow but steady wind the race" kind of way. Definitely appreciate all the videos and your approach though - educated and balanced.

[@lambodriver6983]

I think it depends on which strategy you use as I only write covered calls on weeklies and average 2 to 9% return per week. I have doubled my account in 10 months and onlyvwirk 2 to 3 hours a week.

[@BruceBannerEVENHIGHER-kb3ko]

Excellent video I have been using options to flow with the long equity positions I hold

[@louisthompson1020]

Thanks for all your great information , I've been focusing on Bull Put Spreads , and they have provided me money in Feb. and March ....time to build another

[@andresjimenez9068]

Great video Chris! I thought the charts at the beginning were really helpful.

[@uzbekcooks7814]

Hello Chris! I’m definitely still a rookie at this and I can’t wait till you make a new video on your option strategies. I watched your old one on options strategy but I can’t seem to fully absorb it. I really like to say thank you for all you did and I appreciate how tutorial your new videos. Would appreciate it if you would put light on the ROLLING call option scenario. Thanks!

[@Kenman540]

I agree with everything you have said, and learned a good bit from your videos over the last few years. I myself am already in a position where we own multiple payed off rental properties and I'm not interested in buying any assets or more properties at these insane levels right now. I mainly just have been selling put spreads in the market and taking in the credit as it's out performing holding a dividend portfolio for the most part. The one thing I learned that I will implement is that if I want to get long 100 shares of stock at a price I'm comfortable with I'll be entering it via selling naked puts taking in credit until I get assigned. Keep up your great videos!

[@gregsg2351]

Use options for quicker gains. take money out and buy other things ie stocks property bonds etc.

[@smithwilliams396]

Greg SG contact a professional trader directly for assistance,he will tutor you step by step to your desired trading result

[@smithwilliams396]

+ 1 4 6 9 2 7 5 1 3 7 3

[@cernabonati7022]

I agree bro

[@Andre747]

Happy New Year. Newbie here, expanding my horizons in the market. Thank you for the tutorials.

[@enricoalo1400]

Well said and very insightful! Thank you for this video.

[@DeebzFromThe90s]

Hey there Chris, love your videos. As you said correctly, being a viewer I am still learning about options. With that said, I have a large % of my net worth in stocks, particularly ones that are a bit new to the scene with rapid growth (SE, LVGO, HZNP, DOCU, etc.). It is of my understanding that rapid returns are made on big upside (downside) moves with buying calls (puts), especially when the IV is low at purchase and the option moves from OTM to ATM/ITM. I think this approach suits people who aren't trying to "retain or grow purchasing power over time" (as your video states), but rather trying to build as much capital as possible, like income building. I can see this approach being attractive to people who don't quite have the total capital built to a point where buy and hold brings an attractive "income" or buying power. This is the classic trader vs investor discussion. Being someone with a sub-100k account, I am attracted to the idea of fast gains to set future self up for substantial passive gains, but it's also just too easy to be passive even right now (and that is the lazy part of me speaking - not calling anyone else lazy, just to be clear).

[@Sigmatechnica]

yeah this sounds like a much more plausible approach than the "yeeeah trade options, make meeelions" we seem to see everywhere

[@GreenTimeEagle]

cough cough r/wsb

[@wanderingtrades]

You've seen that Bishop ad as well?

[@maxview99]

@@GreenTimeEagle I get all my advice from wsb. I'm gonna be rich

[@ryugurena3327]

🚀🚀🚀

[@briandevries8200]

Excellent insight Chris! Thank you for the perspective. I am too new to have any contributing comments. I appreciate growing in my understanding from your work. Cheers!

[@TanyaChantale]

Appreciate the perspective from the other side of the coin.

[@ElSheepodoggo]

I'm still playing your tutorial videos on repeat. Lotta stuff to retain, but I'll get there eventually and I'll be able to make some money. You're awesome!

[@tomrussell9752]

Another good one, Chris. I was hesitant to try options in the beginning. But once you understand them, you won't go back. Now, I only own shares of stock when I am writing a covered call. And If I get under water a little with the shares, I just write another covered call against the shares, until the shares can be sold at a profit. My "calling" is selling puts.

[@chucka2507]

A covered call strategy without level 4 approval can be pretty dangerous during times of rising volitility if you aren't pretty quick. You also can't write a call against a block of 100 shares of stock more than once, I assume you really meant roll down a covered call position.

[@andrewb7185]

Chuck A Haha, says who?? Once the option expires or it is closed, of course you can write another covered call option against the same block of 100 shares. You can do this as long as you hold the position. Or you can roll the option which is essentially “closing it” and writing a new option.

[@devitomichael]

Wtf is “level 4 approval”? Why are you making this all sound so clandestine?

[@chucka2507]

@@devitomichael Level 4 approval allows you to be short naked calls. With level 4 approval you can write covered calls and if the underlying stock begins to move down, especially if the move is rapid, you can just sell the stock rather than having to buyback the call you are short (usually at a disadvantageous price) before selling the stock.

[@xxxs8309]

From my experience selling puts and covered calls are the best strategies,but I learned to never go long calls or puts as the time decay will kill you

[@alexanderfrost2943]

Thank you very much. That was a really good advise.

[@mehulprajapati6879]

What happens to a Call Option with expiry date post Split Date in Case of Split, example : happening with AAPL and TSLA ?

[@pb3030]

Finally, an options video by somebody who clearly understands the big picture. Thanks!

[@ivanxyz1]

You are making a very good point. Thank you.

[@ThinkMoneyBenny]

Agree with everything said! great video

[@Timmy-Hi5]

I think you are the best on the You Tube on "options" trading, explanation and tutorials. Do you provide learning one on one ? :)

[@justmrpandme]

Thanks for sharing all the knowledge. I'm new to options and just started last Monday. I watched as many of your videos as I could before jumping in. Made about $500 in a week on options that expired worthless. Please keep the videos coming! Thanks again!

[@wordsbymaribeja1470]

Would you say thay exercising put options should be used to build some stores of value? Of course, provided that you bought the put on the basis of evaluating the company and seeing a long term vision. Thanks.

[@tarangggoel7729]

This is nice video but most of the platforms offer margin on securities we buy and we cN trade on that margin that way both sidea are covered

[@terrencealford4604]

Well balanced and insightful video Chris. I have been both a single stock and option investor for a very long time and so far my single stock investment gains far outpace any option trading gains I’ve seen. The best use of options so far for me has been either as protection or a defined risk way of entering a long stock position as opposed to an outright initial purchase of the underlying equity. I have been trying to learn and implement other option strategies but I’m not seeing consistent gains as yet. While I’m not ready to throw in the towel, but conclusions do seem valid.

[@rajeevrajput41]

Chris, great creator and good teacher. I like only covered option strategy and until they excersice, I enjoy only premium. ....love from India.

[@bayisbenevolent4899]

Prolly one of the most likable humans ever . I wish you mad success dude, you’re a breath of fresh air !! Your speech cadence and vocabulary / vernacular is impressive and riveting , good on you!! 🤍🤍

[@GapBahnDirk]

Sound advice. Great video.

[@rvnut1133]

Agree with you 100%! This is how I invest and my portfolio reads, I use options to play around when the opportunity is there.

[@hsram1985]

Thanks.

[@christophertaylor3150]

Thank you for your opinion. I sell naked puts on things I want to own when they are down and covered calls on what I own when the shares are up. I learned this 6 months ago and am making better returns than I thoughts possible. I dont do any spreads at all.

[@richardfearing4751]

Chris you've arrived welcome to the world of experience. The way you made this video is absolutely perfect in every way. This video should be front and center to all your option trading videos. I've been waiting for this video for the longest time.

[@projectfinance]

Wow, thank you! I appreciate your comment. I'm glad you found it insightful. I'm just trying to keep it real. I have nothing to gain from being unrealistic with my audience and telling them things that aren't true.

[@robertspencer5219]

Great video. I've already been investing and trading this exact way.

[@voztrades]

Thank you for the fresh upload brother.

[@sagig72]

Great video Chris! hey, do you think that LEAPS are better geared towards store of value considering their longer life span? The one problem I see with options is that (perhaps with exception of LEAPS) it is 'timing the market', you always have to have a very specific outlook on both specific time and specific price. To me it feels many times like 'timing the market'. When it comes to stocks or indexes then everyone always says 'dont time the market'. So... some times it's hard for me to reconcile how options aren't also timing the market. What do think of that?

[@ASUKiller]

Love your channel! Learn a lot

[@jb012]

Thanks!

[@timstocker6946]

Hi Chris, Thanks for all of the great material you provide. I totally agree with you on a balanced approach. I take 30% 0f my portfolio and use it solely for options. Of this 30%, I keep half of that aside in cash as support for my option positions. This has given me the ability to invest 15% of my portfolio in options, with a 15% cushion of cash. The remainder of my portfolio is in individual stocks and index funds. This combination generates enough profit from my option trading to generate a 8% to 15% return on my entire portfolio. So, I do agree that people should stay diversified, but the leverage ability of options can provide a significant return with a very limited amount of risk; if done properly. Thanks again for the great educational information! Tim S.

[@wayatanka6085]

Great points and sound strategy, thnx

[@amith2947]

can you please do a long session or video on how you perform analysis before placing your trades. I will be life long sub! u r the best!

[@andylaque]

What type of answers are you looking for?

[@rickydoo9118]

Hi Chris, First I’d like to thank you for your excellent videos! Yes I agree with you wholeheartedly, that options trading is a method of earning money, and not a long term investment strategy. It is important that people understand this, and that they also make long term investments in things such as blue chip stocks, gold, real estate, etc.

[@rdcrealestate]

I completely agree with you. Options are better suited as an accessory to a long term account or a way to hedge a market downturn

[@HefTrade]

What's up Chris! As usual, another great video! This info is very similar to the email you sent me so I find it cool that you have created a video out of what you practice. Since I am in the beginner stage, I am working on my strategies and remaining disciplined to build my account. I must say I am guilty of sticking to primarily an option trading income based approach but as my account grows I can see the potential to broaden out and include buying long stock positions to build wealth through stores of value. Thanks for another great vid, hope you are doing well! Stay safe! Evan

[@scotthenderson4376]

I think your spot on having and holding things that appreciate over time. Options help built that nest egg if you understood them and thanks to your video's people do. However without the knowledge of finding/ picking the direction for those trades the chance of loosing or chasing the trade down is pretty high. Maybe another video??

[@ravivudu]

Agree. Also I like to buy options inaddition to stocks for greater returns or to protect your stocks from downside risk.

[@sanjivshah6903]

Chris your videos are excellent. You have a nice and simple way of explaining different options strategies which very few people can do the job. Enjoyed watching every single one of them so far. Keep the good work.

[@prydegirl]

I have watch so many of your videos. Respect! As a instrument, it is a great way to collect premiums, and my strategy is to continue selling puts well below the current price of the stock. If you truly want to dollar costs average into a stock, why purchase at the current price when you can lower your cost basis with options. Just getting started with the platform made for options trading. Wish you taught in person course. Will continue to watch the online videos.

[@pvswaminath2719]

A very thought provoking video and good advice.

[@rebeccalagundino2056]

Hi Chris, I’m new in this business of trading. I’m 79 , I chose to learn option trading to supplement my meager Social Security income to retire better with my husband, be able to pay for his medical bills and be able visit our children once a year. I’m glad I found you. I like your presentations, . . .you talk softly, not fast. . .the right tempo. I need all the help; hope I could learn fast and get to start investing. . .make that extra money. Thanks for your helpful you tube presentations.

[@PointsInbound]

I'm equally weighted options account and divided account. Im selling puts until etrade gives me level 3. I'm a big fan of you channel. It's really helpful. I keep

[@chucka2507]

If you can sell puts then you must already have level 3 approval. Options approval steps up in the following manner. Level 1: Allows you to sell covered calls. Level 2: Allows you to be net long options and option spreads. Level 3: Allows you to be net short options, options spreads and cash secured puts. Level 4: Allows you to be short naked calls and overwrite the equity margin requirement to some degree when writing puts. I never really understood why most brokers allow people to short blocks of 100 shares of stock without owning a corresponding call, but require special approval to sell naked calls but whatever.

[@sreen3395]

Your KZbin content and the projectoption website is the best out there! Keep up the great work! I am a newbie to options and while there are Lotza youtubers and websites out there, your slides are detailed and to the point which makes it easy to understand!

[@coltonnunley4851]

I wish I would have watched this before I yeeted my savings a few weeks ago lol. Thanks for keeping it real with us Chris!

[@-_-_-_-_-_-_-_-_-_-_-_-...]

Colton Nunley yeet yeet hoorayyy

[@MegaAshfire]

Oh man, I did that some years back while trading naked options. Since then I allocate only 5% of capital with strict slm. All the best👍

[@1purpose.153]

Never good to hear things like you've. Shared I don't have anything but my purpose given to me by the most high. I'm new to the Market but not life. You trying is the biggest hurdle you will ever face. No trying is a real mental disability. You didn't lose you learned and now your ass is going to invest in yourself first be as you should've been aware of knowledge is the realist power you could ever obtain. Not a little bit but enough to realize your life becoming clear. God Bless you bro. Money is a tool not the end result.

[@harivindran4426]

But not to worry since we learn from mistake and ensure not to repeat the same mistake by emotional decision. Keep try with small portion.

[@lafayettewaters15]

honestly so grateful to have a mentor teaching me how to trade options :)

[@Divlnorum]

Chris, love your channel - you rock!

[@titaniumsandwedge]

I believe one can use options for the entire investment strategy and earn good coin. The key is to first acquire enough capital to be an options writer. Writing options is a risky play so the second step is to know when to write options. Then it is a matter of execution, rinse and repeat. BTW, option writing is also not a storer of value. But backing it is a huge pile of cash which stores value.

[@ginune16]

I would add an addendum to say that deep in the money LEAPs can go a long way to the goal of storing value when coupled with a covered call to hedge the theta decay. Other than that, I would agree with you.

[@ziggyc4474]

Theta ?

[@stan7757]

Chris-would you point me to your video on the three option strategies you prefer. Thanks.

[@mtcbdth]

Coudnt agree more! Go covered Calls, Poor Man Covered Calls, and Cash secured puts. Hybrid of both value and short term options play. Love your work keep it up!!

[@stangtrax]

👍 I'm going to watch all of your videos. I have the investing down solid and definitely happy with my portfolio. I also see what many overlook when investing. I did my first options trade last year and starting to do them more frequently to see how it works out for me. For some reason I gravitate to vertical put spreads.

[@mkmbuilder]

Hi Chris i think u r so right im 100% with u on this one I'm a long torm invister but i will like to lorn option just to rase more money to invest in more stoct ...but small amount not looking for a hood lot

[@kinghoey97]

This definitely helped, I just started trading/investing in March and learned about options maybe 2 months ago, the low entry and high risk/reward got me really excited so all I’ve been doing is trying to make option plays and I’m struggling to getting back to break even, definitely gotta look into some lower risk trades/investments so I appreciate the video 💪🏾

[@stephenbevan5475]

Best advice i can give you since you're new to the stock market is to not get emotional with your investments. If it goes down, just be patient!

[@wendelmsall2716]

I agree with your message…financial diversity is a strength.

[@essedbl777]

This is a good video. Thanks for putting it out there

[@Lestat103]

Exactly! Big fan of options, but since the crashy market at the start of September, I only trade shares and warrants.

[@jool5941]

Love these vids. Real, practical info.

[@projectfinance]

Thanks for the comment and I appreciate your views!

[@sudhirpatil3434]

By far- the best informative channel on stock market- I feel myself to be lucky have stumbled upon this channel. Apart from Chris, I am thankful to you tube who made it possible!!!

[@meanielicious]

Thanks Chris! Your videos are all extremely helpful and informative. You should have a paid alert subscription!

[@drewbleicher5883]

Great watch. Can you provide a link?

[@brendanquinn6894]

A third of the monthly profits go into equities, shares, a third into cash, and a third into growing the options base traded.

[@gfy305]

Great vid, pops.

[@robertcliffort2354]

Excellent.

[@MrAspat]

What's your take on the Wheel strategy? It seems it is a good combination of stocks (store of value) and options..

[@whosruda1908]

Your channel is 5 star and I am so grateful that I found it. You and I believe your brother at tasty are awesome. I wish you had videos on charting, tech analysis and would have loved to see your view on Spy 3 day spreads. Just wanted to thank you for the great work you have done on this channel

[@davidgranic2509]

Agree 100%. I use options in my investment accounts sparingly. If I buy value stocks I would usually sell short term calls that I don’t mind getting exercised. I also buy 2-3 calls on on beaten down stocks ie after earnings or bad news usually for a 20% ride. Or buy 2-3 puts on a stock that gapped up and I get confirmation of a gap fill. Also try to make 20%. I learned very quickly to take profits on long options as holding them too long never has worked out for me. The rule I follow is never more than 1% of my portfolio in a trade.

[@delbertsmith-owens8494]

I agree. Options trading has that boom potential when your in the right investments. It can be like buying a popular IPO when it hits, but like you said it's good for short term unless you know it's potential and buy for a longer term. Thanks for the advice I'm not going to put to much into options and split my portfolio a bit more.

[@WolfgangMZwing]

You hit the nail on its head. Bravo! Nothing more to add.

[@oluwafemiaje6566]

Chris ROCKS! Booyah to yah.

[@projectfinance]

Thank you! I just spent a ton of time creating an Options Trading for Beginners PDF (170+ pages now) that includes my best explanations/visuals explaining key options trading concepts and strategies. Check it out: www.dropbox.com/scl/fi/g7d402wnapqexq344ct73/options-trading-for-beginners-aug15-v1.pdf?rlkey=dort61xyaz1rubndbwbqmhd5i&dl=0 If you want updates to the PDF over the coming months/additional learning resources, consider dropping your email on the page here: geni.us/options-trading-pdf

[@vivekrameshjois]

Could you also talk about futures? Really curious about it.

[@alant383]

To me, the main difference with heavily leaning on options trading vs "buy and hold" value stocks is that you run the risk of margin calls when trading options that can decimate your portfolio. This happened to me - my own fault for hanging on too tightly to certain stocks during multiple corrections and sell-offs. I had the wrong psychological approach and lacked a framework to work within. So now, options are mostly a means to value trading i.e. selling Puts on stocks I wish to own anyway and then selling covered Calls in a bear market on a limited, cautious basis. I am still earning to use Iron Condors, Calendar spreads and vertical credit spreads, mostly because I find it so difficult to predict market direction.

[@reasonandlogic4652]

Great advice

[@stanbinary]

Very good insight and sound advice. I wonder what's your view om the flood of new retail investors into the options trading market, and how it impacts the overall volatility of the market? To me, based on the game theory, this might prove to be market destabilizing.

[@dantenappi5655]

Completely agree and needed to be said.

[@jonriede6846]

Good, practical advice. I hope you can find a larger audience through the noise of the get rich quick merchants.