Is the tastyworks promo still valid? Also, it seems to me that the extrinsic value decreases as intrinsic value increases (ie your Apple example). Why is this?
I remember in the late 90s I paid a hefty sum in what was essentially a boot camp environment to learn options trading. The course work was good but the amount of info this new generation of traders is getting free of charge here dwarfs what I had available back then. Take advantage of it! This guy is giving you gold on fundamentals here!
can you pls never stop making videos? I learn so much from your videos and I really want to get into options and it is so confusing about where to start so I appreciate your videos a lot. Also, I'm not sure if you have already but can you make a video of what you look for when you're on tastywork and about to buy an option? like the different values you look for? how you pick the right option? all of the little factors that guarantee less risk?
I agree with what many have said. You do this so well. Keep it up. You've shifted from a powerpoint type or doodling presentation to a more face to face interactive style, that's really good. Have been wanting to see all of these videos , hopefully I can , and hopefully this channel grows exponentially. Thanks
Sylvester, thank you so much! I really appreciate this comment. I have been wanting to switch to the more engaging video format for a while and I'm glad you're enjoying the new format. I appreciate your support and stay tuned for tons more videos in the future! -Chris
And finally I gave up watching this video precisely at location 6:03. Every new sentence of yours until then made me forget the previous sentence. Your video reminded me of a Shinkansen.
trying to understand these differences. Thanks for showing me what Intrinsic means. Difference stock price and Strike. but Lost me in extrinsic because I don't see in the platform an example
I want to place a limit order for an option I have. I know what the price of the stock will be at market open tomorrow but I don’t know how much will the option be at that certain price. So how can I know how much is the options price at a certain stock price?
I’m not sure this is the correct answer but from my understanding, you can look up the Greeks to find out that answer (roughly). Per $ that the stock loses or gain, the delta will have a number and times that by x100. Also the theta will have a number which is time decay. Every day the stock loses theta x100 = time decay. You can look up Greek videos for a better explanation, hope to help.
It might be a good idea to include an analogy of time decay/extrinsic value to a car insurance policy as most people have a car and will understand the concept of the decreasing value of their policy as time goes on.
Been to multiple channels for in depth info on options. While all of them are good (tastytrade (esp Mike), bionic turtle, Option Alpha etc), I think your content stands out because of the quality of illustrations. Thanks a ton, you led me to make my first ever TH-cam comment!
Very unique and excellent !! No one on the youtube education channel has taught so clearly about option price details !! Thumbs up for you. I am very keep to get your one projectoption course. How can you help me ? As a foreigner , I cant open account with tastyworks brokerage . moreover , i already have a brokerage account with Saxo here in S'pore. Please guide me on how can I get a copy of projectoption course. thanks n much appreciate.
Thanks for watching! I'm very glad it was helpful. The courses can be found here: www.projectoption.com/options-trading-courses/ Email me via www.projectoption.com/contact-us/ if you have other questions!
If I held exercised a call option, can I then sell the assets I bought on the secondary market? Take this example, price of a call option is $5.5, the underlying share price is $10.5 there is 10 days till expiration, I execute the option on the expiration date, buy the shares at $5.5 each (typically would be a lot of 100 per option). Then sold them for the current market price of $10.5. Are you allowed to do this?
Yes you can do exactly this. BUT, the 5.5 call option will likely be worth more than $5 when the stock is at $10.5. You could simply sell the option and secure your gain. You don't need to exercise the call option and then sell the shares. You can just sell the option.
@@projectfinance Sorry, i wasn't clear enough. My question is about how the volatility, probability and time until maturity are factored into some formula to calculate what the extrinsic value should be for an option. Is there any such formula?
Glad to see that the offspring of the Coneheads have addapted very well to planet earth, now they even offer tutorials on stock options for us earthlings.
I lost all faith in options because I bought some out of the money options I bought the $64 calls for GILD when the stock price was $61.25 at one point I was in a $36 profit and then a loss the next day the stock price went up another dollar but it now said I’m at a $40 loss and made no sense. The closer the stock price got to $64 per share shouldn’t my options have become more and more valuable and it just seem like they told me the option was worth whatever they wanted to tell me it was worth. Completely controlled and manipulated garbage. Also you have to consider each week that goes by on your options the prices are going down so you can’t try to figure out how much money you’re going to make buying the option at one price and trying to sell it for double the money because you have to account for time DEcay and it was only on the first few days after I bought them a month out
MY GOD! You talk too fast. Too too fast. After each and every sentence of yours, I had to pause the video, absorb the meaning of what you just said, compare it with the diagram (the graphs) on the screen, comprehend it, and then play the video. Once you say the next sentence, I must repeat the entire above cycle. May I ask why do you have to go Yadaa Yaada Yaada? Slow down a bit. What's the big hurry? Secondly, could you please inform me the formula to deduce the extrinsic value of an option? Thirdly, what if the strike price of a Call Option is more than the stock price? Is there any specific term for that or it's just called a "negative intrinsic value"? Thank you sir. (P.S. I am halfway through in your newest 3-hour video. Excellent job so far. Thanks a million).
I get it. I agree with you. My old videos suck. Im too fast. But unfortunately, as a TH-camr, I will have to put up with vicios comments like this on old videos because they can’t be changed. And on TH-cam, you never delete a video. Ever. Extrinsic is a product of two things: time to expiration and the expected volatility. If we look at two expirations on the same stock, the shorter-term options (closer to expiration) will have less extrinsic. But we could look at a shorter-term option on stock A and it could have more extrinsic than a longer-term option on stock B. The scenario would be an indication that stock A has higher implied volatility (larger expected price movements going forward). Usually, implied volatility, which quite literally measures extrinsic value relative to the time to expiration in options, will be very closely tied to the stocks historical volatility.
@@projectfinance Thanks! Didn't mean to sound vicious. Could you please respond to the third question in my vicious message? Also, do you know what are mini options?
Liked this video? Check out our full playlist on Options Trading for Beginners: bit.ly/2UBLzaq
Is the tastyworks promo still valid?
Also, it seems to me that the extrinsic value decreases as intrinsic value increases (ie your Apple example). Why is this?
This man is literally the king of explaining. He makes it so easy to understand. + plus I like that he is smiling throughout the whole video
Thank you! 😎
6:48 this example was awesome! it changed my perspective about extrinsic value
Thanks! I'm glad it helped.
I remember in the late 90s I paid a hefty sum in what was essentially a boot camp environment to learn options trading. The course work was good but the amount of info this new generation of traders is getting free of charge here dwarfs what I had available back then. Take advantage of it! This guy is giving you gold on fundamentals here!
Finally. After 2 days worth watching videos I found the one I needed
Great stuff, learned pretty much everything about trading options from this channel. Thank you for the efforts👍
Thanks for watching and leaving this comment! I'm glad you've learned a lot from the channel.
Direct and helpful with real examples!
can you pls never stop making videos? I learn so much from your videos and I really want to get into options and it is so confusing about where to start so I appreciate your videos a lot.
Also, I'm not sure if you have already but can you make a video of what you look for when you're on tastywork and about to buy an option? like the different values you look for? how you pick the right option? all of the little factors that guarantee less risk?
Bro thank you so much for all the time and energy you’ve spent putting this all together. Much love ♥️
I agree with what many have said. You do this so well. Keep it up. You've shifted from a powerpoint type or doodling presentation to a more face to face interactive style, that's really good. Have been wanting to see all of these videos , hopefully I can , and hopefully this channel grows exponentially. Thanks
Sylvester, thank you so much! I really appreciate this comment.
I have been wanting to switch to the more engaging video format for a while and I'm glad you're enjoying the new format.
I appreciate your support and stay tuned for tons more videos in the future!
-Chris
One of the best explanations I've come across yet, looking forward to your future content! Thank you
Thank you! I appreciate that comment!
More coming this week!
-Chris
Watched a bunch of your videos already - I appreciate you Chris! So good at explaining such complicated topics.
Congrat bro, you are insanely good at explaining these concepts, keep up with the great work!
Thank YOU! I appreciate the comment!
And finally I gave up watching this video precisely at location 6:03. Every new sentence of yours until then made me forget the previous sentence. Your video reminded me of a Shinkansen.
🤣
hands down, this guys the GOAT @projectoption
This video is awesome! It is super easy to understand and explained the concepts very clearly.
By far the most helpful options video I've come across
Thank you for breaking down such a complicated topic! Great video!
trying to understand these differences. Thanks for showing me what Intrinsic means. Difference stock price and Strike. but Lost me in extrinsic because I don't see in the platform an example
I want to place a limit order for an option I have. I know what the price of the stock will be at market open tomorrow but I don’t know how much will the option be at that certain price. So how can I know how much is the options price at a certain stock price?
I’m not sure this is the correct answer but from my understanding, you can look up the Greeks to find out that answer (roughly). Per $ that the stock loses or gain, the delta will have a number and times that by x100. Also the theta will have a number which is time decay. Every day the stock loses theta x100 = time decay. You can look up Greek videos for a better explanation, hope to help.
Very helpful info Chris thank you my friend!
Are there any good practice sites to practice option trading before using real money?
jimjump if you find any can you let me know please. Anyone else that sees this and knows of one ,feel free to spill the beans lol
It might be a good idea to include an analogy of time decay/extrinsic value to a car insurance policy as most people have a car and will understand the concept of the decreasing value of their policy as time goes on.
I m from India . Is this course works on Indian stoke market ?
Dang bro, you never blinked.
😂😂
Finally an explanation I could understand! Thank you very much
Amazing explanation as always.
As always u the best in option, thx chris,
Do u have private on line classes?
I 2nd this
Thank you for the clear explanation as always!
Been to multiple channels for in depth info on options. While all of them are good (tastytrade (esp Mike), bionic turtle, Option Alpha etc), I think your content stands out because of the quality of illustrations. Thanks a ton, you led me to make my first ever TH-cam comment!
Thanks for sharing! And Mike is my older brother if you couldn't tell haha (although he got lucky and still has his hair). I appreciate the comment.
@@projectfinance haha you both are doing a great job, thanks.
How do you calculate the “current price” vs. “average price” when trading call/buy options?
Keep going what you're doing.
Will do! Thank you for the comment!
Brief and Concise. Really helped me. Thank you!
You're welcome!
“Call options at lower strike prices are always more valuable than call options at higher strike prices.”
Jamie Mai: Hold my beer!
Who sets the premium? The brokers?
Great delivery 😎👍🏻
Thank you, James! I'm glad you like the new videos!
As a fellow guitar player… love the guitar in the background.
Great job explaining this one.
Thanks for watching/commenting!
Very unique and excellent !! No one on the youtube education channel has taught so clearly about option price details !! Thumbs up for you. I am very keep to get your one projectoption course. How can you help me ? As a foreigner , I cant open account with tastyworks brokerage . moreover , i already have a brokerage account with Saxo here in S'pore. Please guide me on how can I get a copy of projectoption course. thanks n much appreciate.
Thanks for watching! I'm very glad it was helpful. The courses can be found here: www.projectoption.com/options-trading-courses/
Email me via www.projectoption.com/contact-us/ if you have other questions!
@@projectfinance thank you.
Good graphics & examples but too fast.
Hi Richard,
Thanks for the honest feedback. I'll be sure to slow things down in future videos.
-Chris
16-18:00 cleared a lot
If I held exercised a call option, can I then sell the assets I bought on the secondary market? Take this example, price of a call option is $5.5, the underlying share price is $10.5 there is 10 days till expiration, I execute the option on the expiration date, buy the shares at $5.5 each (typically would be a lot of 100 per option). Then sold them for the current market price of $10.5. Are you allowed to do this?
Yes you can do exactly this. BUT, the 5.5 call option will likely be worth more than $5 when the stock is at $10.5. You could simply sell the option and secure your gain. You don't need to exercise the call option and then sell the shares. You can just sell the option.
This is so engaging!
Damn Pit Bull knows everything!
Every day above ground is a great day 🎉
best explanation ty
Is there a formula used to calculate the extrinsic price ?
Option Price - Intrinsic Value = Extrinsic Value
@@projectfinance Sorry, i wasn't clear enough. My question is about how the volatility, probability and time until maturity are factored into some formula to calculate what the extrinsic value should be for an option. Is there any such formula?
Thank you!!!
So every dollar my contract goes up after my breakeven price I make $100 (not including time money)?
You are awesome 👍 thanks so much for making these vids 👍❤️
Thanks for watching! Many more to come.
Thank you..
Thank You
Glad to see that the offspring of the Coneheads have addapted very well to planet earth, now they even offer tutorials on stock options for us earthlings.
Ty
You're welcome!
Thank you🙏
I now understand option trading 😀.
I love your channel.
Great teacher.
Thank you
sir i am new to options..
plzz guide me where to start....from begginigs
Hi there, please see our playlist Options Trading for Beginners: th-cam.com/play/PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo.html
Can someone help me to contact this vlogger? Can we cooperate with new financial products?
You should blink man. Your eyes must be dry. Great info though. Just concern bout your blink rate.
This is Free. Free
I don’t think this guy blinked once. Slightly sus
Yeah lol old videos/first times recording myself were rough. New videos are normal!
I lost all faith in options because I bought some out of the money options I bought the $64 calls for GILD when the stock price was $61.25 at one point I was in a $36 profit and then a loss the next day the stock price went up another dollar but it now said I’m at a $40 loss and made no sense. The closer the stock price got to $64 per share shouldn’t my options have become more and more valuable and it just seem like they told me the option was worth whatever they wanted to tell me it was worth. Completely controlled and manipulated garbage. Also you have to consider each week that goes by on your options the prices are going down so you can’t try to figure out how much money you’re going to make buying the option at one price and trying to sell it for double the money because you have to account for time DEcay and it was only on the first few days after I bought them a month out
can you write my exam
MY GOD! You talk too fast. Too too fast.
After each and every sentence of yours, I had to pause the video, absorb the meaning of what you just said, compare it with the diagram (the graphs) on the screen, comprehend it, and then play the video.
Once you say the next sentence, I must repeat the entire above cycle.
May I ask why do you have to go Yadaa Yaada Yaada? Slow down a bit. What's the big hurry?
Secondly, could you please inform me the formula to deduce the extrinsic value of an option?
Thirdly, what if the strike price of a Call Option is more than the stock price? Is there any specific term for that or it's just called a "negative intrinsic value"?
Thank you sir.
(P.S. I am halfway through in your newest 3-hour video. Excellent job so far. Thanks a million).
I get it. I agree with you. My old videos suck. Im too fast. But unfortunately, as a TH-camr, I will have to put up with vicios comments like this on old videos because they can’t be changed. And on TH-cam, you never delete a video. Ever.
Extrinsic is a product of two things: time to expiration and the expected volatility. If we look at two expirations on the same stock, the shorter-term options (closer to expiration) will have less extrinsic. But we could look at a shorter-term option on stock A and it could have more extrinsic than a longer-term option on stock B. The scenario would be an indication that stock A has higher implied volatility (larger expected price movements going forward). Usually, implied volatility, which quite literally measures extrinsic value relative to the time to expiration in options, will be very closely tied to the stocks historical volatility.
@@projectfinance Thanks!
Didn't mean to sound vicious.
Could you please respond to the third question in my vicious message?
Also, do you know what are mini options?
Thx