Stock Options Explained 

plain investing

Traditional investments for sure

regular yet, still new.

I have had good results writing covered calls

@@nightrider301 What broker do you use for you covered calls? did you take an investing course prior to investing or just "go for it". I'm looking to get started in "covered calls", but am very new. Any advice woul dbe much appreciated.

First Massage 🤣

😄😆😅🤣😂

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I got about half of it. The explanations of the complex trades went over my head, but at least I found out what a covered option meant.

jajajajja

I'm a security officer hoping to be a physicist in my next life. What's it like?

@@bobbackward6461 i think it is the same as you, we ignore some things and ignore others

@@EddyFisico brilliant response

@@EddyFisico Fisico more like Physic-o haha

This should be easy for you...

Would you mind telling us how many times you multiplied your starting capital before it up s*it's creek

@@jameslouis5359 Seven times or 700% gain. The next trade I was either going to be a millionaire or I was going to be broke. Guess who isn't a millionaire. 😂

My name how come you didn’t take your capital and than play with you wins??

@@90deltaderivatives35 it's always the ego or the greed

@@adambibinski180 not always, that's what sets people apart.

Wow, 100 Shares of Apple would be worth $15,000 right now, it limits people with short cash a little...

Apple stocks have low volatility so option prices should be much lower.

@@beefcake1876 you’re a genius

You’d think he would have mentioned this small detail. Lol

​@@zombie4910The option doesn't cost the whole price of the share contract

Seems like he meant to loose people! He wasn’t explaining to people who don’t know. He was showing off to people who already knew!

Lol same here

He’s speaking another language that I don’t even understand.

My trauma from calculus immediately kicked in .

It was a bit complex but I think I got it. If you buy a stock, you will take all the ups and lows. An option basically means that you aren’t buying the stock just yet, but you are reserving the option (hence the name) to buy the stock at its current price for a certain amount of time. The option seller asks for a premium for you to have this option. If the price goes up within that time, you use your option to buy the stock. If the price goes down, you don’t use your option to buy the stock and your loss is at most as high as the premium. Similarly if you have the stock already, you can also buy an option to sell the stock, which almost the same way. Someone gives you the option that you can smell a stock to him at the current price. For this option he also asks for a premium. If the stock price goes up, you don’t use your option to sell, if it goes down, you use your option to sell and you’ve minimised your loss to the premium. Of course the disadvantage is that if the stock goes up, you will have paid a premium for nothing. It’s basically an insurance. If you have a car insurance but never an accident, then your insurance was not worth it, but if you have an accident, the insurance will take the loss.

Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.

Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.

I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

STEPHANIE KOPP MEEKS she is whom i work with look her up..

Thanks for sharing, I just looked her up on the web and I leave her a message.

Saw the comment after just watching Dumb Money on Netflix, this is perfect

it was calculated, but damn I am bad at math.

Well calculated be like omg Jupiter and Saturn are gonna align i need to quick buy 10k of cum coin with 125x leverage

Cheers for this, been searching for "what is options" for a while now, and I think this has helped. Have you ever come across - Jenameron Penny Smackdown - (just google it ) ? Ive heard some great things about it and my mate got great success with it.

You dumb?

Yeha right

This shit to complicated

@@JonathanBelloso-tz8mz i finally got it lol read a few free books on amazom but totally worth it

Ezm really lol i don’t get it at all

Ezm let’s talk wat ur number

It’s up now

You bought a stock based on social media lol

@@hanssolo1196 which if you got in early and realized then you would have done very well. Not a lot wrong with social media if there's valid information being shared.

This is why people short GME...

Just HODL monkee

wsb for life

Literally can't go tits up

Well you do own the stock so if it tanks...

risk free returns are the reason of so much failure to understand modern finance.

1ronyman tought so too

I did understand this but I've been paper trading them for a year now and have been studying them.

EricSmyth14 I could've watched at 0.5x and I'd still have to rewatch..

The most confusing one for me at the same time. Phew

He wasn’t explaining to people who don’t know. He was showing off to people who already knew!

@White Wolf Some of us have high IQ in other areas like ...I dunno? Street cred? Or perception? But very low on this shite. Not that I've looked into Calls and Puts much anyways...

@White Wolf i edited it a bit. xD

@White Wolf how you can loose infinite money....

Thanks for the kind words!

They are really helpful. Could I know what software did you use to produce this?

I use Adobe Premiere (CS6 I believe is the version).

The way some people use options, probably! But if used in combination with stocks the can actually reduce the risk of your positions

@@ThePlainBagel Wanna play the Warren Buffet hedge fund bet?

If you count cards and play stocks poorly absolutely

@@EricSmyth4Christ dont they use multiple decks now to make it nearly impossible to count cards in real time?

@@anthonymullings8539 counting cards is actually way different than people think You only "count" the 2s-6s as +1 and tens and aces as -1 and ignore 7 8 9s Once the count is +1 to start the hand, the game is beatable using perfect basic strategy by %0.5 or so per hand. The bigger the bet the more money you make on average. Basic strategy reduces the house advantage to %2 as it is, but because the player gets special bonuses from blackjacks and splitting and doubling downs, you can make a lot more money as the player when there is a lot of tens in the remaining deck density. The bets a card counter makes is the table minimum, but when the deck is in his favor, he bets around the table maximum. When the houses made it 6 decks, now the game is only beatable at +6 count, since you have to divide the count by 6 to convert it to what it would be under 1 deck. This is called the true count conversion. Adding decks was definitely to make it harder, but because they deal through 5 decks, it's still common to get a true count of +1 or even as high as +5 sometimes The winning card counter these days makes about $150 an hour at high stakes, Vs about $500 - $700 back in the day The hard part is not getting kicked out with a nice win streak, not finding a beatable game in Vegas The house notices you betting big and also tiny, so they get scared and kick you out Because of this, some players use "cover" like acting drunk or not betting too big on smaller edges. This let's you last longer.

Thank you!

Put = Sell Short = Sell Call = Buy long = Buy

I was a finance major but I ran workshops in economics :) thanks for the kind words! Don’t have an Instagram account yet

You're basically paying someone a little bit in advance for a contract to buy or sell a stock for a preset price before the contract expires. So for a $40 call, you would have the right to buy that stock from them for $40 no matter where the price goes during that time frame. If the price goes up to $100, you can use that contract to still buy it for $40. If the price crashes down to $0, you can just ignore the contract and only lose whatever premium you paid in the beginning It's an oversimplified explanation, but it's what I understood

@@Shining.Silver thank you bro

@@Shining.Silver Okay but how do you lose money in this situation. It seems like if you win, you win big. And if you're wont you only lose a little bit?

@@KrishabBashyal the "better" the contract, the more premium you have to pay. If the real price is currently $40, you might be able to buy a $100 call expiring that week for only a few cents per share. The chances of it going up to 100 in such a short time is very low though. The closer or more "in the money" your call is and the longer the contract, the more expensive that premium is.

jooky87 glad you found it helpful!

T series got nothing on this

Thank you that's very kind!

Dont worry, im a native english speaker and i dont understand either

That is half accurate! I do write the scripts myself though!

If you buy or sell them? If you think one side is rigged, just do the other...

I’ve done work for firms who hand options. I’ve also worked for firms who deal in spreads and cfd. I’ve seen them weigh their shekels against their overall customer customer positions. Lots of algos working out numerous investment stats. Like casinos, you don’t see many fail until their cronies turn on them. Red or black 50/50 ‘ish’. Markets? Played...

I would be playing at the casinos before casually jumping into the derivitatives market.

Dont worry they won't t learn. The government will bail them out and other hedge funds will try to help them out.

For most people understanding the basics is certainly sufficient, glad I could help!