How to Buy Options - COMPLETE BEGINNERS GUIDE (Part 5)
ฝัง
- เผยแพร่เมื่อ 8 ก.ย. 2024
- 📣 LEARN ABOUT OUR PROFITABLE TRADING SYSTEMS | skyviewtrading...
Buying call and put options can yield big returns with very little trading capital. For this reason, you might consider trading options rather than the shares of stock.
In this video, we’ll cover the ins and outs of buying call and put options. It’s not as complicated as it seems. It’s actually extremely simple, once you see how it works.
If you haven't seen parts 1-6, go to our channel and check them out!
If you enjoyed the video, please like, share, comment, and subscribe!
Thank you!
Sky View Trading
☁️ Visit Our Site: skyviewtrading...
🔔 Subscribe to our Channel: bit.ly/3BPWDC9
#CallOptionsExplained
#HowToTradeOptions
#OptionsForBeginners
🚨 Hey all! Thanks for supporting the channel! If you’d like to see a more in depth breakdown of our current trading systems, we put together a quick video here - skyviewtrading.co/3YhhDhx
I have to agree with other commenters here. I've taken so many courses and this is the ONE thing they don't explain well. I guess it's so understood by them that they believe you already get it. However, when you're teaching someone with zero experience, it needs to be taught as if I am in kindergarten. I need EVERY detail. Bravo!
Thank you so much!
Yes, well said just spent 600dollars I have no idea what the lady is talking about.
Agreed, this is the best course I've seen in the subject of Options. Glad it's free, when they charge for courses it's pretty much guaranteed they don't know what they're talking about.
or maybe it's because they don't understand it as much as this guy. generally the more you understand something the better equipped you are to explain it to someone who doesn't know
Dude last month I saw your videos and I was wondering where have u been.today when I see your video Im really happy.thanks for your videos
Glad you're here!!
Dude , you are a real deal on teaching options 🎉🎉🎉 Please show us examples on live trading 😊
Thank you so much! We have a video coming out in the next few months with some live examples!
Best explanation, writings explanation easy to understand.for new options learner your videos are best
Thank you so much!
Yes! I was watching this series and this video came out at the perfect time.
Great to hear! Enjoy!
Thank you for providing this service in plain language. This is what a lot of people need but do not know where to go. You sir are a great teacher.
Thank you so much!
For reals this is broken down to pieces! Thank you so much!
Thanks so much for the kind words, and for watching!
Best channel to learn Options, I'm from India, but it makes sense and i can understand easily.
Thanks
We love to hear that! Thanks for watching and keep up the hard work!!
Great playlist got to know options in a better way... Thanks alot
Glad it was helpful!
Thank you ao much ive listen and read explanations of options trading and probably fully understood 1/3 of it. This is going to change so much I can not thank you enough
Thank you so much for the kind words! We're glad to hear we have been helping!
I have been wanting to understand the logics behind trading options lvl 2 and man you have done exactly how my brain can process it. Thanks man now I just got to trust in the process
Glad to help! Thanks for the kind words!
I've been binge watching this options series - beginners guide. Great work on all videos and thank you.
Awesome, we love to hear that! Thanks for the kind words and keep up the hard work!!
I'm new to options trading. These videos are really educative and will give me the knowledge to dive deeper. Thanks very much🙏🙏
Thanks so much for the kind words and for watching!
You explained these to the T!! Great teaching, from the illustrations to explaining it. This is awesome. Thank you!
You're very welcome! Thank you so much for the kind words and for watching!
Omg! I thought yall stopped, I was so sad. But yeah! You're here!
Not stopping anytime soon! More to come!
@@skyviewtrading thanks you are the only channel that made me understand the basics
Wow the best explanation ever on options, thank you.
Thank you!
No fluff! Thank you so much for this free content 🎉😎
You're so welcome!
It’s been a while , thank you for your educational and informative videos
More to come! Thanks for watching!
Thank you for giving back to the people! You are appreciated
Our pleasure! Thanks for watching!
everything has finally clicked with just a few of your vids, my man!
We love to hear that -- keep up the hard work!!
once again, thank you so much. This is quality content.
You're very welcome! Thanks for watching!
Clear and crisp. Insightful
Thanks so much for the kind words and for watching!
my favorite episode!
Glad you liked it!
Great work guys! I need to start studying up on this.
Thanks, Tommy! Love your vids!
thx
Awesome to see you digging through our content -- thanks again!
Been taking my time studying with you all week and you are LEGIT. Made me a couple dollars too lol
Awesome to hear! Thanks for watching, I am glad we are helping!
Thanks for the video. I think what is missing from this comversation is that when you buy stock, even if your are wrong, you don't loose your money, you can wait the stock to make the move but in case of option, if you are wrong or if stock moved slowly than expected, the option will expire worthless and you will loose that money.
Thanks for the feedback! It's a good point. However, I will also say that there is no guarantee the stock ever makes the move you need. Also, and more importantly, it costs a lot of money to buy shares of stock compared with buying options. Therefore, there is a case to be made that your money is put to better use trading the options rather than holding the shares of stock and tying up that money for all that time. Hopefully that helps!
Great channel!
Thank you!
Hey bro this is very good information for me thank you
Thanks so much for the kind words and for watching!
Hello sir thanks you first
Can you please explain the skew and haw we make disgustin bay coll or sell the put .
Hello! Most stocks have put skew, meaning puts trade more expensive than calls. That's because the perceived risk is to the downside, so the put premiums are a bit inflated compared to the calls. Hope that helps!
Good teacher thanks
You are welcome, and thanks for the kind words!
omg i waited a year for this
thank you •_•
More to come soon! Sorry for the wait!
great video. thanks
You are welcome!
thank you!
Thank YOU!
Thanks sir 🙏🙏
Most welcome!
Great content, the lay out is perfect
Thank you so much!
Very useful for me very simple explanation I am from Pakistan nice day
Thank you for the kind words! Glad you enjoyed the video!
Great explanation
Glad it was helpful!
any plans to do a series on futures?
Great idea! We'll certainly add it to our list!
New video?! Hell yeah
🎉
Great series. When is your next part out ?
i made it to the end!
Make sure to sub, more vids to come 😄
Very good
Much appreciated!
Quite helpful, thanks.
Glad it was helpful!
Holy crap finally a new video !!!!!
Plenty of them on the channel now!
I’m very new to trading so this question will be dumb You say we can only loose what we pay as far as the premium for the option but where does the stop loss come in is that something that allow traders to not pay the full premium?
Hey! Awesome to hear you are new and eager to learn more. You could put in a stop loss if you wanted to. For example, you buy the option for $1.00 ($100 per contract). You can put in a stop loss to close the option at $0.25. At that point it would be worth $25. You'd only lose $75, rather than the full $100 that the option was worth when you bought it. Hopefully that makes sense!
Hi thanks for the videos; What's the trading station you work with ? thanks
Hello! We use TastyTrade as our preferred broker for members. They cater to option traders like us. We are also familiar with TD and their ThinkorSwim trading platform.
Thanks for the very clear explanation. How do I contact you for a one on one.
Check the links in the description and/or send us an email! Info (at) skyviewtrading.com.
Greets, Sky View Trading! I concur with my fellow traders, you make this stuff super easy to understand - hats off to you and your team! One question I had, at approximately 2:35, you came up with an Exit value for the first Call option at $9.00, which equates to the Intrinsic value of the contract. Where would we find these values? Will that rule be the same for all of the other call options down the list, simply the intrinsic value? Because that first figure you derived, $9.00, was for an option call that was actually for a stock price below the entry price of $122. Will the subsequent exit values of option calls 122 through 125 also be determined by just the intrinsic value of the contract, or will it include the extrinsic value, or some other additional values as well? Thanks in advance for any additional clarification!
Hey Ronnie! Thanks for the kind words! Yes, at expiration all options are worth their intrinsic value. So the 122-125 and all the option strikes for that matter are worth their intrinsic value at expiration.
The extrinsic value is all the "time value" left. At expiration there is no more time value, so it's all intrinsic value.
The platform shows us both the intrinsic value and the price of the option at any time if we want to see it. We can also just do the math for the intrinsic value, which is simply the amount the strike is In The Money by.
Hopefully that makes sense!
@@skyviewtrading Okay, that makes sense. Appreciate your reply and I look forward to viewing the rest of your content!
18:16 you close a call : sell to close. you close a put : buy to close, right ?
In this case where we sold the full Iron Condor on entry -- that is correct!
Who awakened the ancient one?
HAHA!
This was extremely helpful!
Glad it was helpful! Thanks for the sub!
Dude you gotta tell me what site you use to trade
Hey! In that video we are using TD Ameritrade and the TOS trading platform they have.
Where is the strategy you were talkinh about though?
Hello! Keep digging through our channel and we have some of our favorite trading strategies explained in there!
Soooooo, how do you close the position. And can you put an automatic stop on it so it will close?
Hello! You can close the position with a click of a button, just like when you enter a position! You can also put stop losses on stock and ETF option trades if you want.
Do you cover puts as well? Or only calls.
We cover the buying and selling of both puts and calls, and also strategies when you combine them. For example, the strangle strategy is when you sell a put and a call at the same time. Hopefully that makes sense!
So if you close the long call position by selling the option, do you then assume the risk of the contract on the other end by becoming a seller? I'm confused about how this doesn't turn into a perpetual roundabout of assuming and divesting of risk on the initial trade. Appreciate any explanations!
Hello! I understand your confusion. But no, once you close the long call option by selling it you don't assume the risk of the contract on the other end. Because you have "flattened out" your position. For example, your position shows +1 call. If you then sell that call, your position goes back to 0 (or no position). Hopefully that makes sense!
@@skyviewtrading Thanks for the speedy and well-explained reply! A quick follow up if I may: I still need someone on the other end to buy the option, correct? So liquidity has to be good enough for me to get filled at a reasonable bid/ask spread? I'm trying to figure out if closing a position is the same as selling to a market maker firm who warehouses stock, or if I am in fact selling it to another person who is buying the option through the broker.
2:49 you would have made 6.36 per share not per contract right?
Hello! It's per contract. We are talking about trading the option contracts, not the shares of stock. Hopefully that makes sense!
What trading broker platform you are using here?
Hello! That is the ThinkOrSwim trading platform by TD Ameritrade
@@skyviewtrading thanks
If I have an account with a balance of $180 and I wanted to buy a contract at 2.63 x 100 = 263. Obviously I will not be able to do this. So should I change the limit order to be much smaller like 0.26 or would that not work. Essentially my question is how should we find contracts and trade limits to fit our account balance amount.
Hello! With that account size you could put the order in for $1.80 or less, but the option price needs to trade down there in order for you to get filled. With a smaller account size, I would recommend papertrading for a little while to gain some skills while you save up more money for your trading account. Hopefully that makes sense!
Wonderful Explanation, looks like very well organized and well-professional audio process. I love this video. Can you let me know how to enroll with you to get a more professional stock services plan? you can send me a private message to discuss.
the send me the training button on your options trading masterclass doesn't work
Hmm thanks for letting us know. It seems to be working when I try on my computer though. What happens when you click the button? Can you maybe try using a different web browser?
Whats the platform being used here? :) thanks
Hello! That is the ThinkOrSwim trading platform by TD Ameritrade.
Bro, it only took you a year to upload your next video. Your staff is great, should be posting more opten.
haha we have been working on a lot of stuff for members lately, but we hope to start getting a bit more active on TH-cam now!
@@skyviewtrading I am subscribed to your channel so happy to see these content. I am studying a masters in Quantitative Finance so just this week I watched parts 1-2-3 on trading options . Great stuff!!
Respected sir,
How to trade in usa from pakistan ,physical shares non cfd
Hello! Find a broker that lets you trade US stock options. Interactive Brokers is most popular amongst our members. Hope that helps!
At video 17:19. The Max Profit for Long Put CANNOT be Undefined!!
Hello! Thanks for the feedback!
1st one here
Welcome! Make sure to hit that like and subscribe. I think that's what I'm supposed to say, right?
@Sky View Trading Been done that my Friend
Appreciate you! 🙌
@@skyviewtrading 💯
where have you been T_T
Why did you leave me for an entire you you LITTLE SON OF GAAAAAAAHHH!!
*jumps over table and tackles*
Haha sorry to leave ya hangin, Tony! We'll be posting more regularly from here forward!
@@skyviewtrading haha I was being sarcastic. Glad to see an upload again!
I hope you've been well.
By the way, if you aren't having a good time making youtube videos, don't worry about it. As much as I like your videos, I rather you pursue your passion and do the thing you enjoy. For time being, welcome back! :)
@user-kn3ki4dt5j I don't know who you are.
Long put has a max profit, not undefined.
You're correct. Thanks for pointing that out. Since a stock can't go negative, technically the max profit is defined.
Although just a theory, we like to think of the max profit on both sides (calls and puts) as being defined by the 2 or 3 standard deviation mark. Of course that extends beyond this video lesson though!
@@skyviewtrading unless the puts are for commodities like oil, which can go negative as we have seen 2-3 years ago. I do wonder if the prices of puts on commodities in general increased as we experienced this scenario.
@@etienne4403 Yep we'd agree events like that typically have a lasting effect.
after years....
We won't be gone that long this time around
kinda late but ok
Better late than never I suppose. Thanks for watching! More content coming soon.
God sees one good deed and multiples it by 10.
Thanks for the wise words!
Awesome to see you digging through our content!