Learn The GREEKS : Option Trading 101 (w/ Examples)

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  • เผยแพร่เมื่อ 7 ม.ค. 2025

ความคิดเห็น • 215

  • @justmrisrael
    @justmrisrael 3 ปีที่แล้ว +95

    Delta - derivative
    Gamma - gain
    Theta - time
    Rho - rate
    Vega - volatility
    Is what I’m getting…
    Most important video I’ve seen this year

  • @stanwiley3798
    @stanwiley3798 10 หลายเดือนก่อน +9

    This is the best video on explaining the Greeks that I've seen yet. Also love the humorous tone in which it's delivered. Made it super fun to watch and learn! 😁

  • @Nikyv786
    @Nikyv786 หลายเดือนก่อน +2

    Wow!!!! It’s going to take a lot of practice to remember this. BUT you are the first person to explain this in a way that makes SENSE!!!

  • @RahimRahimli
    @RahimRahimli 3 ปีที่แล้ว +126

    Summary of the video:
    imagine buying some call options:
    1. stock moves up by one dollar -> the price of the option then increases by the delta
    2. stock moves up by one dollar -> then the delta is increased by the amount of the gamma
    3. a day goes by in the options life -> and the price is then decreased by the theta because theta decay decreases that price of the option
    4. interest rate just went up -> then the price of the option will increase because of rho as we know rho is what we look for when interest rates increase or decrease
    5. the implied volatility rises by one percent -> then the option price will increase by the amount of Vega

    • @Calidann
      @Calidann 3 ปีที่แล้ว +3

      Thanks bro

    • @deontalaw2
      @deontalaw2 ปีที่แล้ว +2

      There we go! 👏🏾👏🏾thank you

    • @bbulliard
      @bbulliard 9 หลายเดือนก่อน +3

      that is excellent way to say it all

    • @bachtran8749
      @bachtran8749 8 หลายเดือนก่อน +1

      Thanks for the summary, this deserves more likes

    • @porter-hkd4084
      @porter-hkd4084 8 หลายเดือนก่อน

      Great explanation

  • @underratednerd8259
    @underratednerd8259 ปีที่แล้ว +2

    Great freakin video! The explanations with the examples were key. You didn’t just word vomit and expect people to be impressed by multisyllable words. Great job friend!

  • @Salim-f4b6m
    @Salim-f4b6m 2 ปีที่แล้ว +2

    I've watched about a million videos about the Greeks and never could understand them... until now. Thank you so much for the great content!

  • @tywoodsgetgrants
    @tywoodsgetgrants ปีที่แล้ว +8

    As a daily options trader, I️ finally understand how the Greeks work! Thank you!

  • @tonynunez6539
    @tonynunez6539 2 ปีที่แล้ว +9

    Thank you for taking the time to explain complex information in great detail and in a way that is easy to understand with great humor.

  • @aleksandrkhramtcov4846
    @aleksandrkhramtcov4846 3 ปีที่แล้ว +63

    I wish there was an animation of how each greek affects the option price movements. But still awesome video.

    • @alvareza3
      @alvareza3 9 หลายเดือนก่อน +3

      Sounds like the perfect Segway for a follow up video

    • @uselessvideo
      @uselessvideo 8 หลายเดือนก่อน +3

      I fkn love animations. Helps the perspective translation so much.

    • @CuriousWRLDs
      @CuriousWRLDs 6 หลายเดือนก่อน +1

      The underlying stock is what effects Greeks and then options price movement is derived from there

    • @SKITT7ES
      @SKITT7ES 4 หลายเดือนก่อน

      💯 🎯
      I agree but no complaints from me over amazing free education.
      I can read or listen to something several times and not understand. When I see something one time, I remember it forever.
      Awesome video! Thank you 🙏🏼

    • @512TheMayor
      @512TheMayor 3 หลายเดือนก่อน

      Need to see this, hope your Trading is going well

  • @delboo21
    @delboo21 6 หลายเดือนก่อน +1

    I am completely newnto options. I am on a self education journey and this is one of the best videos i have seen explaining the greeks.

  • @infiniteomega2
    @infiniteomega2 3 ปีที่แล้ว +12

    As a huge newb to options trading, i absolutely love this channel! You explain things in a much more easy-to-understand way than other channels. Would you consider doing a video going more in depth specifically into selling shorter-term covered calls against leaps? Is there a strategy revolving around buying a leap, selling when getting assigned, buying another leap, etc.?? Like, instead of alternating between selling calls and puts, buying and selling only calls instead? Do you have a Discord?

  • @peternguyen4257
    @peternguyen4257 ปีที่แล้ว +1

    Very good video. I am watching your entire options video series to learn how to trade options

  • @thomaskiser3886
    @thomaskiser3886 ปีที่แล้ว +2

    You have the best videos for understanding everything somehow! Been watching for a couple weeks before dipping my toes! Thanks for the good content and explanations!

  • @adatshhc
    @adatshhc 11 หลายเดือนก่อน +1

    Clear, concise, entertaining, and useful. Thank you.

  • @Hazel66781
    @Hazel66781 3 หลายเดือนก่อน

    This is the best explanation I've come across. You made it easy to understand.

  • @anthonymay1280
    @anthonymay1280 2 ปีที่แล้ว +4

    Ok, you are pretty amazing. I am hooked but have a lot to learn. I am not trying to gamble. I want steady income with balanced risk. I think you are the one to teach me and many others. Please keep it up, even if you make 10 videos saying the same thing. It will eventually stick with us who are diligent.

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 ปีที่แล้ว +1

      You will never make steady income trading options in the stock market. There is always risk involved, and you are statistically guaranteed to lose money at some point. Over the long term, you might make money...but it will not be a steady and consistent stream of income.

  • @smileypc44
    @smileypc44 2 ปีที่แล้ว +1

    I tried to like this video 3 times after I’d already liked it. Great explanations!

  • @karachisharpie
    @karachisharpie ปีที่แล้ว

    Awesome quality content and teachings. I bet most traders avoid these trades…. Time to invest time

  • @vonnjames5756
    @vonnjames5756 6 หลายเดือนก่อน

    I am so happy I spent 2 years obsessed on learning price action before i even peeked at options. It would seem so complicated if I did not understand general market behavior

  • @ZAGIDI
    @ZAGIDI 2 ปีที่แล้ว

    This video is fantastic and well explained. Unfortunate you do not make videos anymore. Any new option trader should see this video.

  • @kev16
    @kev16 3 ปีที่แล้ว +2

    Im just getting into this stuff and these videos are super helpful, thank you! I had a suggestion or request. Its easier for someone like me ( a newbie) to follow along when you and the screen are on camera but most of the time its just you... and just listening to all these terms and lingo is really hard to understand without something to look at.
    THANK YOU AGAIN

    • @CelinesCulture
      @CelinesCulture 3 ปีที่แล้ว

      Noted Kevin...👆👆👆👆 chat me up

  • @farias92
    @farias92 7 หลายเดือนก่อน +1

    I wish I had a maths teacher like you back when I was in high school

  • @avelrage
    @avelrage ปีที่แล้ว

    I only subscribed because you make me realize my ignorance with good humor so i can keep my pride intact..

  • @katetrannguyen5847
    @katetrannguyen5847 2 ปีที่แล้ว +1

    Your explainations are so much better than my professor

  • @cjlee996
    @cjlee996 8 หลายเดือนก่อน

    Very well explained. One thing I would add though: usually the higher the volatility of the stock (historically), the higher the Gamma.

  • @myname7914
    @myname7914 หลายเดือนก่อน

    You are hilarious. I was there till the end of the video I am here.🤣

  • @xerox53
    @xerox53 3 ปีที่แล้ว +1

    Know your greeks!
    Gyros, Uzo, Hellas, Crete and Vega...
    Learned so much about options in the past six months, but your channel is the best. Thank you so much!

  • @venkatnjn6354
    @venkatnjn6354 ปีที่แล้ว

    I like the way you are explaining. Very entertaining. I think you can act in movie or dramma so you can make more money

  • @josezerpa7815
    @josezerpa7815 ปีที่แล้ว

    Thank you for all the info that you share with all of us newbies.

  • @Andy_OvaSeas
    @Andy_OvaSeas 3 ปีที่แล้ว

    Bro, thank you for taking some complex definitions and making them comprehendible to everyone. Great content.

  • @SodanyLove
    @SodanyLove 5 หลายเดือนก่อน

    I was just watching another video on this topic and i was so lost lol but your video is very clear and informative, thanks.

  • @unums
    @unums ปีที่แล้ว

    Very good.
    Thank you, about as clear and simple as you could break it down without it being overwhelming. (assuming you know anything about Options prior, lol)

  • @TheRinstir
    @TheRinstir 7 หลายเดือนก่อน

    Best option video I've seen! Great examples!

  • @Retarmy1
    @Retarmy1 4 หลายเดือนก่อน

    I like to use covered calls, and sell call options that are out of money, where the strike price is above what I paid for the stock price, if the stock price goes down, I can wait for the stock price to rise, or write calls that far out of the money. It is a good easy plan.

  • @avikenz3334
    @avikenz3334 18 วันที่ผ่านมา

    Thank you so much for the CRYSTAL CLEAR EXPLANATIONs 🎉🎉🎉🎉
    is it normal that my strike price change ? i noticed that the strike price of my put options decreases the closer the asset price gets to it.

  • @CRpatriot
    @CRpatriot 2 หลายเดือนก่อน

    Thank you do you have a video of which Greeks are good to choose

  • @mariahmoore8373
    @mariahmoore8373 ปีที่แล้ว

    This is a really great viddeo! You explained it so well. Thank you!

  • @DysVeteran
    @DysVeteran ปีที่แล้ว +1

    Man I absolutely love numbers

  • @alephzero7808
    @alephzero7808 ปีที่แล้ว +2

    buying VIX call options hoping to sell them at much higher price later doesn't protect you.Because by the time they expire,the options will cost almost nothing.Unless you have loads of money to buy actual shares using that call options. It is a game for the loaded people,don't gamble if you are short of cash.And never look at average option prices,look at seller price,because you always buy and sell options at sellers' ask price.And the difference between ask and sell prices can be huge,especially at smaller trading platforms and for smaller company stock options.

  • @lastarlaloca1
    @lastarlaloca1 ปีที่แล้ว

    Hello, Iam watching your videos and see you haven't posted in a year.. I am learning a lot and hope that you continue to post.

  • @katherinel1801
    @katherinel1801 8 หลายเดือนก่อน

    Come back! I just found you and I like your channel the most

  • @moong7771
    @moong7771 3 ปีที่แล้ว

    How to manage options from market crash/ inflation ? Pls make a video on this bro. I do really follow your videos and like your explanation in detail.

  • @cordellsmith1523
    @cordellsmith1523 ปีที่แล้ว +2

    The “expiring when: Tomorrow” got me. Lmao

  • @johnnymarzuoli2616
    @johnnymarzuoli2616 4 หลายเดือนก่อน

    Thank you, very good video ...I like your style!

  • @Serg_lemus
    @Serg_lemus 3 ปีที่แล้ว +2

    Pandrea I have a question, when u make a sell put to buy 100 shares do u need to sell before expiration or can u just let the option expire and keep the premium?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 ปีที่แล้ว

      Any time you sell an option and hold the position to expiration, you always keep the full premium...regardless of whether the option expires worthless or if you get assigned on it.

  • @seleannia4511
    @seleannia4511 หลายเดือนก่อน

    you saved my life, thanks!

  • @Tevin_Montez
    @Tevin_Montez ปีที่แล้ว

    Man this video is awesome, definitely got a new subscriber!! Thanks man 🙏🏽

  • @paultreviska9417
    @paultreviska9417 ปีที่แล้ว

    wish you had used more images to add to your descriptions. If you asked me to describe the current flow through a Common - Emiiter PNP and NPN transistor applying forward and reverse bias I'm sure you'd be with me - right? right??

  • @Bbfanatic
    @Bbfanatic 2 ปีที่แล้ว

    I JUST discovered you and your work. Thank you very impressive. Wondering: Do you do paid consultant work? Im a private investor who plays options loosey goosey. Would like to get more serious w/a paid professional helping at first.

  • @muthuramanm7627
    @muthuramanm7627 3 ปีที่แล้ว

    Alex, Can you please provide a video on how are you identifying the under valued stocks? do you use any screeners? what is the strategy you use to take a decision on buying LEAP options on a stock? Kindly provide some details about it, it will be very helpful. Thanks in advance.

    • @admin-5399
      @admin-5399 3 ปีที่แล้ว +1

      Thanks~~~~

  • @MostDopeInvestments
    @MostDopeInvestments หลายเดือนก่อน

    This was amazing thank you

  • @a.burnett2055
    @a.burnett2055 4 วันที่ผ่านมา

    great explanation!!!

  • @davidfenn4776
    @davidfenn4776 3 ปีที่แล้ว

    Great content! How about a video on how to close out each of the different option contracts?

  • @stevepaguay9877
    @stevepaguay9877 2 ปีที่แล้ว

    Great explanations! Keep the videos going.

  • @ericmcloyd9208
    @ericmcloyd9208 5 หลายเดือนก่อน

    Fantastic video, learned alot!!!

  • @LECityLECLEC
    @LECityLECLEC ปีที่แล้ว

    Well explained love your work ty!

  • @SantiagoRamirez-dr1nr
    @SantiagoRamirez-dr1nr 3 ปีที่แล้ว

    Best video out there on this!

  • @_Shimona
    @_Shimona 4 หลายเดือนก่อน

    This was great. Thanks

  • @hollylarue5279
    @hollylarue5279 7 หลายเดือนก่อน

    Thanks for the easy breakdown

  • @aleekdominican
    @aleekdominican 7 หลายเดือนก่อน

    Excellent job at explaining. For that you get a follow and a like

  • @bhaturah9556
    @bhaturah9556 9 หลายเดือนก่อน

    Very nicely explained!

  • @MalcolmHyman-px5pb
    @MalcolmHyman-px5pb 9 หลายเดือนก่อน

    I saw your video and thought id ask. I had a put option contract with a $30 theta. I held it overnight, and the next day the stock dropped 20 points. Sonehow i was still negative on the contract. My broker is saying it has something to do with the theta and gamma, but from your video it doesn't seem at all likely. Do you have a possible explanation or was i just robbed ?

  • @Jewdacris91
    @Jewdacris91 2 ปีที่แล้ว

    So ideally you want a stock with high delta and low theta?

  • @shakakuykendall5903
    @shakakuykendall5903 3 ปีที่แล้ว +3

    You are very good at explaining options. In the future would you possibly do a options group or classes?

  • @MSpeedThree
    @MSpeedThree 7 หลายเดือนก่อน

    Those AMC calls would have been nice to have had.

  • @Natsuo2023
    @Natsuo2023 3 ปีที่แล้ว +8

    are you able to make a detailed guide on selling puts like what to expect in weekly contracts, monthly contracts, yearly contracts and how to make sure we profit everytime ?

  • @maritzasantos1721
    @maritzasantos1721 ปีที่แล้ว

    Great explanation

  • @lb_studio7
    @lb_studio7 7 หลายเดือนก่อน

    which interest rates are RHO based off of?

  • @vinadamsllc
    @vinadamsllc 6 หลายเดือนก่อน

    Though a bit speedy it was comprehensible. Did not fall asleep.

  • @qb51
    @qb51 3 ปีที่แล้ว +1

    Most underated TH-cam investors you and Smart Trader

  • @shaymashiach3320
    @shaymashiach3320 3 หลายเดือนก่อน

    Great video thank you

  • @GuillePozzi
    @GuillePozzi 3 ปีที่แล้ว

    Thanks for sharing your knowledge. You simplified options trading to the Max.
    Being trying to understand options for long time.
    Now I’m only SELLING options. But once you do your Poor Man’s Selling Calls I might take a look into Buying

  • @thedrivenfew
    @thedrivenfew 3 ปีที่แล้ว

    What books or course do you recommend to dive deep? Who/where did you learn from? Thanks

  • @mateoacuna3936
    @mateoacuna3936 29 วันที่ผ่านมา

    Great video good info

  • @derekbystander
    @derekbystander 3 ปีที่แล้ว

    I'm sorry but I felt asleep after watching your video. But I have learnt after

  • @matthewdelcambre1280
    @matthewdelcambre1280 3 ปีที่แล้ว +3

    Your vids are the best man. Pls keep posting!

  • @taseannashavers
    @taseannashavers 5 หลายเดือนก่อน

    Very helpful.

  • @coachyamyam9666
    @coachyamyam9666 2 ปีที่แล้ว +1

    Gonna have to watch more than a few times lol

  • @graceb970
    @graceb970 2 ปีที่แล้ว

    Amazing. I understand it now

  • @maguguzenandentubuzi9291
    @maguguzenandentubuzi9291 8 หลายเดือนก่อน

    Thank you 😊

  • @augustlennix
    @augustlennix 3 ปีที่แล้ว

    excellent video bro

  • @derekbumgarner772
    @derekbumgarner772 7 หลายเดือนก่อน

    Great teaching and funny

  • @burnbot7623
    @burnbot7623 9 หลายเดือนก่อน

    So calls on amc 0dte? Got it.

  • @hc-xr6uh
    @hc-xr6uh 3 ปีที่แล้ว

    What do you think about robo-advisers like wealthfront? for long term investment 1 year plus not a 401k

  • @lisatran699
    @lisatran699 3 ปีที่แล้ว +1

    You are so funny "Vega no not Vegas" lol

  • @yesterworld21
    @yesterworld21 3 ปีที่แล้ว +2

    This was my next step into learning options. Appreciate it brotha

    • @PandreaMoney
      @PandreaMoney  3 ปีที่แล้ว +2

      appreciate you watching ben! thanks!

  • @777ruven
    @777ruven 3 ปีที่แล้ว

    Thank you Sensei the best you tube channel about trading, I even stumbled upon! I feel like you are my Rich Mr. Miyagi. Seriously I watched all your video in one session and I am a better trader. I am no longer a certified bag holder.

  • @MrJrob586
    @MrJrob586 ปีที่แล้ว

    I'm a bit confused with the gamma and delta. So if gamma increases delta, why wouldn't you add the $6.46+0.51? Why are you just adding the original delta of 0.49?

  • @bbulliard
    @bbulliard 9 หลายเดือนก่อน

    excellent video

  • @youweicheah
    @youweicheah 3 ปีที่แล้ว

    Thank you!

  • @EarnedSalvation
    @EarnedSalvation 3 หลายเดือนก่อน

    0:53
    CALLS ON AMC!
    expiring when?
    TOMORROW!
    I sometimes show these videos to friends just to set up a situation where they laugh, and then ask "whats that mean anyway?"

  • @shortfuse3776
    @shortfuse3776 3 ปีที่แล้ว +2

    great breakdown of the greeks

  • @andrewjaramillo
    @andrewjaramillo 3 ปีที่แล้ว

    Thanks Alex. Short and sweet and to the point.👍

  • @Frank-vx4im
    @Frank-vx4im 3 ปีที่แล้ว +1

    Great! New video!!! 🔥

    • @PandreaMoney
      @PandreaMoney  3 ปีที่แล้ว +1

      thanks for watching francisco!

  • @incogneato6395
    @incogneato6395 10 หลายเดือนก่อน

    Holy shit did the like button light up when you said to hit it??

  • @AntonioInvests
    @AntonioInvests 3 ปีที่แล้ว +2

    Delta and Theta are the best 😁

  • @stevedale25
    @stevedale25 2 ปีที่แล้ว

    Where are you? No posts since the market downturn!

  • @iqqyplaysgames
    @iqqyplaysgames 4 หลายเดือนก่อน

    If options contracts are a fixed price, after you've bought it why does any of this matter?

    • @yeeteshpulstya9890
      @yeeteshpulstya9890 3 หลายเดือนก่อน

      Good question. Most people don't actually end up exercising options. They buy options so the value of options itself increases and then they sell it off. That's when all these factors matter.

  • @joshuas.8239
    @joshuas.8239 3 ปีที่แล้ว

    Thanks meet Kevin

  • @tse30
    @tse30 3 ปีที่แล้ว

    Best video as usual! I learned it the hard way! Wish I saw your video before I lost too much of my M?
    Thanks