What are Stock Options - How to Trade Options and Make Money

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What is a Stock Option? A stock option is the right or “option”, but not the obligation, to buy or sell a stock at an agreed upon price by an agreed upon date.
Typically, 1 option represents 100 shares of the underlying stock.
There are two types of options. Put options and Call Options.
You buy call options when you believe the price of the underlying stock will rise in value. You would buy a put option when you believe the underlying stock will fall in value. The advantage to investing in options is they have the potential for enormous games relative to buying the just the underlying stock. With this potential comes enormous risk as well.
Key terms
Call options: You believe the underlying stock will rise in value
Put Options: You believe the underlying stock will fall in value
Strike Price (aka target price): the agreed upon price in which the option can be exercised at.
Expiration Date: The date on which the “option” expires. The transaction must be completed by this date.
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Understanding Options - amzn.to/2T9gFSp
Little Book of Common Sense Investing - amzn.to/2DfFGG2
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DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment.
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[@BudNtBuddy]

Could you explain the calls and puts to me I’m still a little confused about them

[@henrobrice]

You should have so many more subscribers. So happy I stumbled onto this channel.

[@henrobrice]

As your channel is educational in nature, perhaps how to diversify in the stock market? For instance, I have underperformed in this bull market because I put too large a position in UNP, which has been stellar but suffered badly in 2015, leaving me lagging the overall market.

[@henrobrice]

Awesome! I look forward to it :) As you continue to flesh out your video library, it will only get more useful. Your presentation is very good. I've made almost every investing mistake, each of which taught some kind of lesson. 1) Chasing yield - not evaluating dividend stocks correctly, including payout ratio and earnings growth. 2) Not understanding the business - is it easily explainable to a third grader? (MREITS still confuse me). 3) Topic idea - discussing stock splits, people love them but it's as you know basically cutting a pizza into more slices. 4) Topic ideas - dividend reinvestment. It could be a good layer beyond your excellent dividend video you have currently.

[@vodafone614]

i have came across many options explanations and this is the best single one! awesome!

[@Motivation2Invest]

Great video, That felt like a personal story at the end, "got to the market close watched the stock intently, but then the option was out of the money" 😅

[@jennys4271]

Best explanation ever! Thank you 😊

[@inNYCC]

Great video and explanation. Finally a clear understanding of options

[@SalvadorTarantino22]

too late to join the party but thanks for your video, Do you happen to have more videos about options?

[@te7308]

Okay so I just found your videos! Been losing my butt trying this trading thing on my own. Jeez…I’m so smarter than that!! Did I get this right that I can buy options already “in the money”? As long as I have enough cash to cover and make the profit? 🤦‍♀️

[@just2learn971]

Hmm little bit more clear point of view... 👍

[@oshanefa]

interesting

[@Nerubiru]

Hi Jimmy! not sure if you would be seeing this as it's sure a super old video, but do people buy options to buy and sell shares on the same day, to make some quick profit?

[@Nerubiru]

and why or why not? :)

[@mrlucasardema]

What if choice 1 is selected and I sell the call option for a profit, but then the person who bought the call option from me executes? Would I then be obligated to sell 100 shares to them? Or would the person who originally wrote the call option be obligated to sell 100 shares?

[@richiek8066]

What happens when it goes up to or above 87.5 when it expires? and what happens when exercise it at 87.4?

[@cstewart7056]

Unless you excercised your option it would expire, even if over the 87.5 that you wanted.