What are options and covered warrants? - MoneyWeek Investment Tutorials

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  • Options and covered warrants are two derivative products that have proved in recent times. Here, Tim Bennett explains what they are and the risks of using them.
    Visit moneyweek.com/youtube for extra videos not found on TH-cam.
    MoneyWeek videos are designed to help you become a better investor, and to give you a better understanding of the markets. They’re aimed at both beginners and more experienced investors.
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    Related links…
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ความคิดเห็น • 203

  • @bekithembandebele8270
    @bekithembandebele8270 5 ปีที่แล้ว +78

    Is this just me or this guy is just the best teacher there is. Thank you for taking some seemingly complex concepts and simplifying them. You really are good

    • @clarkzavier1521
      @clarkzavier1521 2 ปีที่แล้ว

      I know im asking the wrong place but does anyone know a tool to get back into an instagram account??
      I was dumb lost the password. I love any tips you can give me!

    • @bekithembandebele8270
      @bekithembandebele8270 2 ปีที่แล้ว +1

      @@clarkzavier1521 I am not sure but is that not a thing a simple forget password would help you reset?

    • @Fred-zt5ky
      @Fred-zt5ky ปีที่แล้ว

      he’s an outstanding teacher indeed I learnt so much from him

  • @michz2256
    @michz2256 9 ปีที่แล้ว +92

    THE BEST TEACHER ! I'M AN MBA GRADUATE AND I COME HERE TO REFRESH MY INFORMATION . THANK YOU FOR THE GREAT JOB YOU DO .

    • @MeneTekelUpharsin
      @MeneTekelUpharsin 8 ปีที่แล้ว

      mich Z Do you really make a lot more than 20 thousand/month or were you joking?

    • @jameslarsson8701
      @jameslarsson8701 8 ปีที่แล้ว

      +David Swaim binary options is a scam. if you win the company loses and they will not allow that.

    • @jameslarsson8701
      @jameslarsson8701 8 ปีที่แล้ว

      try to make a withdraw your capital and see if they give it to you. they won't. it is an ellusion. so bye bye to your money gambling

    • @michz2256
      @michz2256 8 ปีที่แล้ว +1

      +Michael Gray if you do you wouldn't be chasing people on TH-cam. Get lost

    • @warrend.okodamavoungou4073
      @warrend.okodamavoungou4073 5 ปีที่แล้ว

      James Larsson binary options are not normal options !
      Yes, It is a scam because it’s the part with more money who wins this !

  • @spi-phiquotes3923
    @spi-phiquotes3923 2 ปีที่แล้ว +3

    I'm not a chronic TH-cam-commentator, but you, sir, are magnificent, not only at explaining, also at making the subject matter come alive in an exciting way. Thank you.

  • @mattomicgaming1859
    @mattomicgaming1859 7 ปีที่แล้ว +45

    Absolutely incredible. I wish I had you as a lecturer at university! Please keep making these videos because they are amazing! It would be incredibly useful if you could teach us IFRS standards

    • @tehutimaat1647
      @tehutimaat1647 5 ปีที่แล้ว

      say it again please say it again ..we all the way in the bAck can't Hear you ...

  • @dennixmaina
    @dennixmaina 10 ปีที่แล้ว +69

    with the Bahamas joke in the beginning lol

  • @prasannavi1911
    @prasannavi1911 6 ปีที่แล้ว +9

    Whenever i am confused on understanding concepts, i ll start listening his videos..

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 ปีที่แล้ว +75

    Thanks - but any more comments about me being cute and my wife will force me to present these videos with a bag over my head :)

    • @samuelspencer5047
      @samuelspencer5047 3 ปีที่แล้ว

      Lol tell her she does not need to worry she has your affections.

    • @bennymarshall1320
      @bennymarshall1320 3 ปีที่แล้ว

      You can reassure her it's sarcasm ;)

  • @samuelspencer5047
    @samuelspencer5047 3 ปีที่แล้ว

    @10:42 I appreciate the acting Tim when you rub your eye as you portray the caller "I want that 1000 shares." Lol to "in tears I hand them over".

  • @kevinngugi154
    @kevinngugi154 8 ปีที่แล้ว +9

    You Are such a good explainer man, I watch all your videos

  • @johnny6ryefield
    @johnny6ryefield 12 ปีที่แล้ว +1

    beyond doubt the best financial education channel on youtube.. i start my day with checking for new vids from MoneyWeek.
    Only problem is, my girlfriend keeps going on about how cute Timis, and I'm fed up.

  • @AzhanAbdulRahim
    @AzhanAbdulRahim 12 ปีที่แล้ว

    Tim, I've been struggling with the topics of derivatives in my MBA; listened to three of your videos - all beautifully explained. Thank you.

  • @MultiGuiri
    @MultiGuiri 3 ปีที่แล้ว +1

    Thank you so much! Tim is so talented at explaining the financial world to us.

  • @femobasha11
    @femobasha11 9 ปีที่แล้ว +4

    HD, well delivered, and you make it interesting. Thank you.

  • @darkbyte2005
    @darkbyte2005 3 ปีที่แล้ว

    Tim this was absolutely brilliant explanation of options. Even after 9 years ago..

  • @saurabhnaik5165
    @saurabhnaik5165 7 ปีที่แล้ว

    Thank you Tim .. You ve actually simplified tough terminologies :)

  • @govindanvr7627
    @govindanvr7627 9 ปีที่แล้ว +4

    tutorials so nice, i leaned someting from your videos.

  • @RobertOSullivan
    @RobertOSullivan 10 ปีที่แล้ว +1

    Best explanation I found so far on the whole web, thank you. I have subscribed.

  • @Martin-dw8zz
    @Martin-dw8zz 4 ปีที่แล้ว

    Absolutely phenomenal video, you get so much information so clearly into such a short space of time. Amazing teacher thank you so much!!

  • @sarahakasera
    @sarahakasera 12 ปีที่แล้ว

    simple, lay man explanation, easy to grasp, good job Tim!

  • @patrickmwangiager2481
    @patrickmwangiager2481 7 หลายเดือนก่อน

    You are a master teacher. You make this topic look very simple

  • @Harshamostwanted1
    @Harshamostwanted1 9 ปีที่แล้ว +5

    Your explanation is simple!

  • @Naregmusic
    @Naregmusic 7 ปีที่แล้ว +31

    Your teaching methodologies are magnificent!

    • @tehutimaat1647
      @tehutimaat1647 5 ปีที่แล้ว +1

      Say it again please say it again ..we all the way in the bAck can't Hear you ...

  • @AlinaSvid
    @AlinaSvid 10 ปีที่แล้ว

    Thank you so much! Your explanations were very helpful to understand options!:) saved lots of time!

  • @sud1987
    @sud1987 8 ปีที่แล้ว +9

    Insightful video. Shame that the comments are riddled with trading adverts..

  • @deeptichawla5218
    @deeptichawla5218 7 ปีที่แล้ว

    superb explanation:) loved it .. best explanation of the concept of options

  • @ozymandias8523
    @ozymandias8523 5 ปีที่แล้ว

    Good sir, you deserve my respects, amazing lecture, it took me a lot of time but finally ai managed to understand the concept behind calls and puts, I really thank you so much.

  • @timsynnott321
    @timsynnott321 7 ปีที่แล้ว

    Great work mate, well explained in easy to understand language.

  • @r.arodriquez4392
    @r.arodriquez4392 หลายเดือนก่อน

    Thanks for the information in all your videos. I need all the help I can get. You make very simple to understand 🙏

  • @OneScapWolfPack
    @OneScapWolfPack 2 ปีที่แล้ว

    Fantastic video, I don't comment often but I can't say enough how helpful this video have been.

  • @CatineSkyi
    @CatineSkyi 10 ปีที่แล้ว

    Thank you MoneyWeek! I love your videos! You're the best online guide!

  • @thamilinikulasingam9573
    @thamilinikulasingam9573 6 ปีที่แล้ว

    thank you, I finally understand options!!!

  • @sagarsingh1234
    @sagarsingh1234 12 ปีที่แล้ว

    Wow, amazing clear explanation! Good job Tim!

  • @markizmendez6431
    @markizmendez6431 6 ปีที่แล้ว

    Dear, Tim, Thank you for your videos I just would like to know could you explain the Long call put altogether with the Short call and put topic, Thank you & kindest regards

  • @B0redAtUni
    @B0redAtUni 12 ปีที่แล้ว

    Hi Tim, super explanation. I've been struggling with Swaps and Options on my L1 CFA. Excellent video and clearly explained, please keep posting these vids!

    • @chrisfilet
      @chrisfilet ปีที่แล้ว

      Hi John did you end up passing your CFA L1?

  • @srivastavaneeraj18
    @srivastavaneeraj18 8 ปีที่แล้ว

    Thank you for such informative videos.. Can you also please help to provide more details on Warrants.. If there is already a video on warrants, please help to provide the link..

  • @oluatutube
    @oluatutube 11 ปีที่แล้ว

    You do a fantastic job in your video's - I'm a fan - Happily subscribed!

  • @withyoulala
    @withyoulala 11 ปีที่แล้ว

    thanks for the video, im taking exam soon and your video has a much better/clearer explanation then reading from my text book. Zzzzz

  • @epcortek11
    @epcortek11 6 ปีที่แล้ว +2

    Excellent video , well PUT my friend !

  • @mk25dec
    @mk25dec 12 ปีที่แล้ว

    Amazing explanation, made it so simple, excellent work ....Please keep posting ...

  • @timomuro9513
    @timomuro9513 6 ปีที่แล้ว +2

    “If they do, they’re a lunatic” great vid!

  • @davidalen9279
    @davidalen9279 5 ปีที่แล้ว

    brilliant teaching. thank you sir.

  • @Miclariez
    @Miclariez 6 ปีที่แล้ว

    Simple and clear explanation!

  • @Wanrli3
    @Wanrli3 9 ปีที่แล้ว +1

    Very good explanation!

  • @DiscoverPianoTV
    @DiscoverPianoTV 7 ปีที่แล้ว

    thank you again! great presentation and explaination!

  • @JinGwee
    @JinGwee 11 ปีที่แล้ว

    Hi, nice series of videos. Can you explain how the leverage system in FX works, from the perspective of the broker, or the exchange?

  • @jdmaryanne
    @jdmaryanne 6 หลายเดือนก่อน

    you are an awesome teacher!

  • @coxmello
    @coxmello 11 ปีที่แล้ว +1

    This was extremely informative thank you very much!!

  • @joevideotogo
    @joevideotogo 11 ปีที่แล้ว

    I now use entry setups that derived from the CME floor traders (now part of CBOT) which use pure price action and I must say it has sorted my trading out. The strategy is the Pipdaq setups and are simple in nature and not very subjective either...

  • @hohiha1000
    @hohiha1000 8 ปีที่แล้ว

    THANK YOU !!! YOU ARE ALOT BETTER THAN MY PROFESSOR !

  • @vedantsgoodlife7302
    @vedantsgoodlife7302 4 ปีที่แล้ว

    That is one great video... quite informational. Thanks a lot

  • @john-blair
    @john-blair 3 ปีที่แล้ว

    Thanks. Very well explained.

  • @jthusany
    @jthusany 9 ปีที่แล้ว +3

    another great job

  • @zhubarb
    @zhubarb 11 ปีที่แล้ว

    HI Tim, from minute 19 onwards you mention how the premium of an option changes as the market price changes and that most of the time options are not exercised but rather change hands at different premiums. What I understand then is that in this case traders are dealing with the future (derivative) of an option (derivative). So the 'product' changing hand is a 2nd derivative of the ABC share prices. Is this correct?

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 ปีที่แล้ว

    Good idea - I will add that to my list. Tim.

  • @carrad123456
    @carrad123456 4 ปีที่แล้ว

    Hi, have you written some book or recommend for us.

  • @JamesTaouk
    @JamesTaouk 4 ปีที่แล้ว +1

    God bless you. Thank you for your time.

  • @G00n3r4Life
    @G00n3r4Life 11 ปีที่แล้ว

    Brilliant explanation. Thanks

  • @abhinavitsmebellamy
    @abhinavitsmebellamy 4 ปีที่แล้ว

    Thank you, for this. Great video!!

  • @warren2398
    @warren2398 2 ปีที่แล้ว

    I think I finally almost fully understand options.

  • @Mr3169Leo
    @Mr3169Leo 3 ปีที่แล้ว

    fantastic explanation, thanks

  • @jishaman
    @jishaman 11 ปีที่แล้ว

    Is it possible to Hedge your options or sell an option of another option which expires within the expiration of the original option?

  • @bacovasaimir7277
    @bacovasaimir7277 4 ปีที่แล้ว

    Thank you very much for what you are doing great teacher :)

  • @EN4ORC3R
    @EN4ORC3R 10 ปีที่แล้ว +2

    great video. thnks

  • @MJALI96
    @MJALI96 6 ปีที่แล้ว

    Question: The holder of the “paper” is limited to only losing the premium paid in a put/call option, while the writer has an unlimited risk with the call option, as the stock price can keep rising, correct?

  • @Latin_American_Economic
    @Latin_American_Economic 11 ปีที่แล้ว

    I have a question. With options do you have to own the shares to write a put or call option or can you write either a put or call without owning shares.

  • @anny23108
    @anny23108 5 ปีที่แล้ว

    The fact that the premium for the option changes means that once you have bought the shares you have to supplement what you have paid already or that new buyers will have to pay more - premium wise- for a put option if - 2 weeks from the option being issued- underlying's price has gone down? Thank you

  • @topshota003ah
    @topshota003ah 11 ปีที่แล้ว

    Very Clear Thanks Tim.

  • @Lozgbwoi
    @Lozgbwoi 11 ปีที่แล้ว

    Hi Tim, yes your videos are good. Are you going to go into any more detail eg put call parity, combinations etc.

  • @glenbrown4132
    @glenbrown4132 3 ปีที่แล้ว

    Well and easily explanation thanks!

  • @thekidinventers7323
    @thekidinventers7323 ปีที่แล้ว

    I have a question and had been trying to find the right answer. When they do a secondary offering and at the same time they issue stock warrants to be exercised at the price..do they dilute/issue more shares again when warrants are exercised?

  • @amithdilhan3103
    @amithdilhan3103 9 ปีที่แล้ว +2

    thank you very much

  • @mineshize
    @mineshize 10 ปีที่แล้ว +1

    thx sir for explanation

  • @inspiron645
    @inspiron645 12 ปีที่แล้ว

    thank you, i learned the basic right now :)

  • @patilshreyas0009
    @patilshreyas0009 11 ปีที่แล้ว +1

    this was really good .,just realized i have wasted my 3yrs and huge money in the business school .,please if you can let me and the community understand the difference between american and European call/put

  • @jango143ful
    @jango143ful 3 ปีที่แล้ว

    id be in the bahamas! what a classic start. great videos.

  • @Sendrassil
    @Sendrassil 10 ปีที่แล้ว

    Regarding the call: the 50 are called payoff and the 20 are the profit since profit = revenue - expenses / 50-30

  • @jmusic2024
    @jmusic2024 3 ปีที่แล้ว

    Amazing explanation

  • @MrLeo625
    @MrLeo625 4 ปีที่แล้ว

    Very well explained 👍🏽

  • @bhumishri
    @bhumishri 9 ปีที่แล้ว +1

    Thanks Tim for the video, makes really easy to understand..
    I felt the maths was off at few places..(I may not have understood it,, so please correct my understanding)
    1. In Call option, at premium of 30pound/share the option would cost 30pound * 1000 shares = 30,000pound, i did not get how you came with 300pounds.????
    2. On expiry of call option, the holder will make (50-30)*1000=20,000 and not 200,000. Were does 200,000 come from?
    3. Same on the put option, the holder will make (100-30) * 1000 = 70,000 and not 70,000.

    • @linima69
      @linima69 9 ปีที่แล้ว +4

      hey hi, the pounds to the small to the small p conversion is 100(p) = 1 pound. so 20000(p) is 200 pounds

    • @arthurromanov
      @arthurromanov 8 ปีที่แล้ว

      +Hemamalini Venkat crap this is the part I didn't understand... Tim called it 4 when it was 400p, I actually still don't get it but just probably so tired (and already drunk of my wine) that uhhhh.... fuck it, tomorrow is hopefully another day =) Tim - thank you very much for the videos... hope I can reach out to you somehow - I have ideas.... I have investors... I have speculators =) Mother Russia =)

  • @binilana
    @binilana 11 ปีที่แล้ว

    Just great! Even excellent!!! Thank you so much!!!

  • @CovertOpsProductions
    @CovertOpsProductions 12 ปีที่แล้ว

    what class in college would i pick if i want to do the things that you make videos about?

  • @romanivanov2589
    @romanivanov2589 10 ปีที่แล้ว

    Really good explanation. its a shame I haven't seen this video in my undergrad years....

  • @esoteric_chaos
    @esoteric_chaos 2 ปีที่แล้ว

    Love these learning gold nuggets

  • @Harrybhatia16
    @Harrybhatia16 12 ปีที่แล้ว

    excellent explanation

  • @BlergleslinkVettermoo
    @BlergleslinkVettermoo 5 ปีที่แล้ว

    Good tutorial!

  • @Subnbellle
    @Subnbellle 12 ปีที่แล้ว

    You just got a 22 minute free Master's degree. Tim (i'll watch his subsequent videos now) indulges simplicity. Folks prefer complexity, that's how we were raised. I bet (and would roll the dice) on the simplicity of his next videos, only with more content. My theory is: hang on to this simplicity, apply it to the next, take notes. More content is overwhelming, i.e. one death is a shame, 1,000 deaths is a tragedy. (perspective.) Your parents saved $200g but ya won't get laid at frat parties.

  • @michaeltai2964
    @michaeltai2964 2 ปีที่แล้ว

    A good 👍 explainer on the subject.

  • @bennyyoung9842
    @bennyyoung9842 ปีที่แล้ว

    Amazing, thank you :)

  • @JoeR.3221
    @JoeR.3221 ปีที่แล้ว

    *question* So you have to own the 1000 shares in the first place before you can create and sell a call option to someone else??

  • @samialsati8054
    @samialsati8054 6 ปีที่แล้ว

    bestttttttttt explanation many thanksssss

  • @FunnyLearner
    @FunnyLearner 11 ปีที่แล้ว

    Great video!

  • @ritakhan5293
    @ritakhan5293 4 ปีที่แล้ว

    Thanks a bunch!

  • @jerrythompson9529
    @jerrythompson9529 3 ปีที่แล้ว

    Any know any good brokers for warrants in the uk for us equities?

  • @eagle6792
    @eagle6792 11 ปีที่แล้ว

    man you are a legend.

  • @allpassarchery4505
    @allpassarchery4505 14 วันที่ผ่านมา

    Very good indeed

  • @MoneyWeekVideos
    @MoneyWeekVideos  11 ปีที่แล้ว

    you got it! Tim.

  • @JyotiPandey-go2kk
    @JyotiPandey-go2kk 2 ปีที่แล้ว

    Thank you.

  • @andrewhedlund1
    @andrewhedlund1 12 ปีที่แล้ว

    Would it be fair to say that futures and options are similar but the only difference is that options can't be renegotiated? Also, thank you SO much for the excellent tutorials on these complex matters. This is how I spend my spare time!

  • @archit28
    @archit28 2 ปีที่แล้ว

    Are Mortgage Backed Securities and Asset Backed Securities and Collateral Debt Obligations a Futures/Forward Derivative or is it an Option Derivative?

  • @fadialkhamach5616
    @fadialkhamach5616 3 ปีที่แล้ว

    you are a legend ! thank u !