projectfinance is an options trading focused channel, teaching beginners the mechanics of options strategies.
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Great video, I learned a couple of new things and have been using the platform for a few years! I do have one quick question if you don't mind: While in the options trading table, how do you add more columns? Besides the standard bid/ask, I can only have two columns (desktop version 2.14.0). Thanks a bunch.
Thanks Jeremy! To add columns you have to make your platform window wider. If you go full screen you should have a couple more than if you have a shrunken down window
Why did you bail out of using ToS(back in the Day) ? Just wondering Cheers to the Guy that got me into OPTIONS with your old Options for Beginners using the ToS Platform
Must have been an OLD video! I switched because of fees and privileges. Last I checked TOS had tiered privileges and could be hard on tiers for newcomers and also had much higher fees especially for multi-legged trades and 10+ contracts. That said, all platforms have their pros and cons!
FINALLY, SOMEBODY WHO DOESN'T TALK AS IF YOU'VE ALREADY HAVE TRADING EXPERIENCE ! Other people title a video as "beginner" and use trading terminology in the video. This is amazing, thank you!
I love your content. Your explanations and examples are easy to understand. Thank you for posting. Keep up the great work that you do. Cheers from the Philippines 🇵🇭
Isn't this what the second-order greek CHARM represents? Charm is the 1-day change in an option contract's delta. However, you won't find charm on any broker's option chains. It's something you have to calculate yourself. (Gamma is the only second-order greek that you will ever see). Charm can be useful though when trading 0-dtes, IMHO. However, it's only useful if calculated on a change in delta per hour basis, instead of daily charm. (The same holds true for the first-order greek theta. However, I'm not sure if I should divide by 24 or by 6.5 when calculating hourly theta or charm)
Hey Chris, I have a question. What should I do if the short put gets assigned on a Friday? I'm in a bull put spread on the spy and got assigned 1000 shares on the spy over the weekend. I don't even know how I got assigned if I don't have that margin amount. I still have the 10 puts in the money
You don't need the money to buy the stock since it happens forcefully. What happens is your account is put in a huge negative margin situation, but as long as you still have the long put you aren't at risk of massive losses. Your risk profile is the same as the original put spread position after assignment, except it's actually more profitable on the upside. To close out the position you'll need to sell the stock and then sell your long puts. You could technically do this in one order. If you don't close the position out, your broker will do it for you if you don't respond to their messages about it. You could also exercise the long puts to sell the stock. Though if there's lots of extrinsic value in the long puts then you don't want to exercise them. It would be better to sell the stock and then sell the puts. Sell the stock first, then sell the puts.
Let's try to be a little more optimistic!! 😂 Though in reality you will pay your tuition costs over time, just have to try to keep them small which this video could help you with by first understanding the mechanics and risks. I hope you enjoy the video!
quick question .. in your examples if you achieve being above the strike price of a call or below for a put couldnt you just sell the contract early rather than wait for the stock to trend differently?
At 7:07 you state that there is a 32% chance the VIX will be below 1000 or above 3000 in one year. Is 32 correct or should it be 34 which is half of 68? Sorry but it's not sinking in for me. I do not understand where 32 come from. Thank you very much.
Um, how about rolling the call up and out, which is part of the covered call campaign? I've learned that I should never, ever, ever let the stock price exceed the covered call strike price IF I want to keep the stock, And I've learned, I should never, ever, ever let the option expire above strike price. Never ever. Did I say that before? Yeah, covered calls should never expire above the strike price. The goal of rolling up and out should be to take approx. 50% profit of the call to roll it up. By that I mean and for instance, if you have the stock price rising, you should catch it at a point where buying the call to close your position will cost approx. $900. At the same time, you sell a new call at a higher strike price and further out in time (usually with about a .3 delta), getting another $1800 more or less of credit. With this roll up and out, you just made $900 of profit. If you have the feeling the stock is going to drop out, then sell the stock and your options position and take the rest of your gains. Easy peasy. 😁
Thank you Chris 😊 for being great very informative, I enjoyed watching the RU-vid video i will watch it over and over, this was the First time i am watching anything about trading stocks. It is foreign language to me about trading’s. I like safety way you mentioned in things, It was very easy to understand, this is very Important helpful of understanding and i know you put lots of time and effort and people are watching worldwide, In the the past i lost was wiped up in a crash in, There was no RU-vid or much internet back than, If i knew about this and you i would not have lost my savings. You weren’t born yet back than, I had in the past had trusted in a friend. She was wiped out as well. We didn’t know if it was legal stuck company or not even. BIG THANK YOU. Lisa G.
@@JS-no7zqyou need to go to the trade page and click on the “ask” of the exact contract you sold to set up a buy to close order. Buy back the same amount of contracts you sold. What was your initial trade? Give me exact details.
@@JS-no7zqcheck your positions and look at your contract quantity. If it is NEGATIVE that means you sold to open the puts (as discussed in this video). To close them you need to ADD/BUY contracts to your position to neutralize/close it. So if you sold 3 puts your contract quantity is -3 and so you buy 3 contracts to close them out.
So that means the long of an option will want to execute it when this time value is the smallest, i.e. closer to expiration. Chances to get executed as a short are greater the closer to expiration.
