Unemployed Guy Explains Option Trading in 5 Levels of Complexity
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- เผยแพร่เมื่อ 1 พ.ค. 2022
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My name is Ben, I'm an unemployed option trader and youtube finance professional with 0 certification, training, or formal education.
Trading Volatility
www.trading-volatility.com/Tr...
Hedging Pressure Commodity Options
papers.ssrn.com/sol3/papers.c...
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Start of 2022 I promised myself I would make $1 million options trading, with just $2.5 million to go I’m gonna meet my goal
LOL
Ah, an "There is enough sand and water to make a half-filled glass out of" kind of guy.
Damn, sounds like you almost made it. Good luck man, you got this. Whatever you've been doing, keep doing it. Those are some big numbers you're putting up, high roller!
@@joshurlay do you not get it? He’s $1.5 million in debt
@@Adamlol642 No I was just feeding off his joke with my own 🤣🤣
Man I was wondering where you went, if you were gone any longer I might actually start making money
We can’t have that
That's priced in.
@@Aaronlcyrus EVERYTHING is priced in
Benjammin's been enjoying the rocket ride to the moon on AMC and GME cashing in on dem tendies bruh
I Wish I could show you my trade republic account, looks like Bordeaux red😮💨
Putting half of my Salary into my portfolio at the start of each month has always been my approach. My second approach is to hold off on selling for at least five years, but as of late, my portfolio has seen a significant fall with losses of around $65k, Please what can i do?
you need a certified financial planner straight up! personally, I invest in ETF's and also love investing in individual stocks. yes it’s riskier but am comfortable in my financial environment
Agreed, After taking charge of my portfolio in early 2017, i stumbled into losses. Upon realizing that a change was necessary, I consulted a fiduciary advisor in 2020 and since then my $1.2m portfolio has gained 28% annually through restructuring and diversification using dividend equities, ETFs, mutual funds, and REITs.
Mind if I ask you to recommend this particular advisor you using their service?
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
yolo it all into $RTX puts, it's gotta go down eventually
It’s amazing how difficult it is to really understand how this thing works, and it’s even more amazing to see how many people are trading this thing. Surely they’ve all understood all these complex concepts and our world is full of mathematical geniuses.
@@krztix whaaaaaaaa?
Lol
HA! If only lmao
gambling.
I hit buttons, Robinhood fun game
The fact Ben feels the need to deny he has professional certifications probably means he is, in fact, licensed to give financial advice.
He probably has a science degree maybe chemistry. Hes great at math though.
Benjamin is my favorite TH-camr funny yet educational
@@LegacyAftermath ahhh the true mindset of a betting man, going out on a limb to guess his education out of the countless nr of possibilities
@@holthuizenoemoet591 A perfectly rational retail investor if id ever seen one
@@LegacyAftermath What degree does he actually have?
Unironically the most informative investing channel on youtube
Ayo fr. it's kind of wild so many have WAYY too much fluff and BS, these are amazingly polished, edited and refined videos
Literally, I watched his videos like 7x each waiting for the next one 😭
u cant be informative about gambling bozo they all con artists
I saw that first reply and started laughing out loud thinking about NFT shoes
its ironically, not unironic...
Last part really got me motivated. We have limited time in life, flying on a blue rock through spacetime. Why not spend it dedicating life into activity of printing money out of thin air, contributing absolutely nothing to society? Sound like a great plan. Im in.
🤣
lol
Don't forget about Jesus Christ
You should watch Wolf of Wall Street.
@@jacobb554 Does Jesus Christ print money? If he does, i'm all in
"I'm an undeployed financial professional on TH-cam"
I like this style of honesty
I decided I’m too dumb for all this so I just stack silver and gold.
I call it “ the caveman investing strategy”
i make money with gold to lose them is stocks :))
Why not the sleeping dragon strategy?
Hey it was around in Romen times for a reason :D
I buy dividend stocks and real estate. I've never bought an option in my life.
Now that sounds like something for me
Glad to see Benjamin didn’t go long rope after Amazon crashed 200 points.
It’s Long $ROPE
@@brian6905 too degen, ser
Most actively managed portfolios don't even beat the market, so betting on any one stock is honestly kinda dumb. Long term you'll do better (and save on trading fees) with index ETFs
@@Jay_in_Japan But where's the excitement in long term investments?
By far the best finance TH-camr 🔥
Holy shut I can’t believe you’re here
Holy shit. I used to follow you since the early days.
Holy shit its the g
Of all people I expected to see under this video, King Keto was not one of them.
What's up man, I believe now I can trust this guy
This channel is god-tier
Cope with those 0 likes 😂
@@piggynatorcool668 35 likes now
all of it is finacial advice too!!!!! =()
Verified channel gets 84 likes in a year😂
Oh good. Your back. I was getting bored with donating my Wendy’s paychecks to some Hedge Fund Managers wine collection with basic options trades. Thank you for give me new, fun, and exciting ways to continue to donate to their wine collections, while furthering my families concern about my gambling…. I mean investing habits….
Doing the Logan name justice.. keep up the good fight🙏
as im at work at wendys this hits…
I love it when he explains how i can donate my money to wall street on a professional level
Loved the rip on Khan Academy with the “Portfolio Value P” reiteration while drawing the arrow. Spot on 😂
Indeed ensuring profits understanding all market structures definitely requires lots of commitments and brains I believe, pretty much why I leverage aid from professionals, this way I’ve found myself earning still sparing me quality time to learn…..
Of course!
Irrespective of a looming markets crash, when traded properly stocks and forex can be a revenue for earning consistent passive incomes and I’m very proud to be a benefactor of its lucrativeness
I envy you mate Lol, wish I could say the same for myself…frankly the stress that comes with trading is too overwhelming especially as a rookie.
I would not mind having assistance tho!
@@Mhousley Very true! I’ve been able to scale from $347k to $620k since November because my IA figured out Defensive strategies to protect my portfolio. Truth be told his trade system’s absolutely responsible for my earnings in the markets
Sure a good number are making 5 and 6 figure gains from the current stocks, forex and bitcoin situation but most often they’re either real time pros/experts or are being backed by pros just like you.
Good one 👌🏻
That explains your unvarying profits investing @Barb, is he licensed your trader. How can I get to him?
My friend once recommended an American, he’s good and all but his fees are way too exorbitant….
I’m honestly impressed that people who picked up trading in 2020 are still around. Everything they love has been decimated and steadily heading lower for over a year. Are they telling themselves that things will turn around?
No just shorting now
Many of the people that stayed are the ones that actually will make it in time. The ones that come back when it’s up only again will continually fail
@@chodhry7701 I’ve been shorting since Feb 2021. I gave up going long entirely in May 2021. It’s been nice but now I’ve forgotten how to look for good long signals so my days are def numbered lol.
if enough people short gme. it will go back up. it went up like 100 percent last month.
I started trading back in December 2021. I don’t even know if steadily upward green days even existed back then. I think it’s a myth.
I love the material taught and covered in this video ans the doodle really throw me off with how in depth it is. KEEP UP THE GREAT WORK!👍
By far, the most informative AND entertaining Option trading information I've consumed. Ever!
This is my favorite finance channel on TH-cam. Essentially Ben Stein meets Peter from Office Space. Keep up the great work!
17 minutes until I can start YOLOing my money professionelly again.
How is it going ?
@@shitshow2061 -95% But I will come back ;)
@@yilisavwer that was fast
@@andrewthag Well I am a professional
I'm not used to this level of production quality from you Ben, nicely done!
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.
For a successful long-term strategy you have to seek guidance from a broker or financial advisor.
@@HelenaBonham-pz4ly With the help of an investing advisor, I diversified my $400K portfolio across markets, and I was able to earn over $900k in net profit from high dividend yielding equities, ETFs, and bonds.
@@PhilipMurray251 Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
@@margaritasbunny My consultant is Elizabeth Pan Holt She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
@@PhilipMurray251 Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
I'm positive that the present market has an equal chance of yielding high-value gains or losses, so I'm careful with my selections; however, I heard that a trader made over $850k in this market, and I could really need tips on how to earn similar profits.
The market is volatile at this time, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
@@ThomasHeintz wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
@@ThomasHeintz Thank you for this tip. it was easy to find your investment advisor. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Brought to you by, 'definitely not a bot comment chain'
Never seen this channel- also never laughed so hard while simultaneously learning so hard in my life
m.th-cam.com/video/XKPmtbCmkE4/w-d-xo.html
This is his legendary Yolo videos from Wallstreetbets
Dude you are by far my favourite TH-camr, I watch countless hours of content, but when I came out of emergency heart surgery after a heart attack the only thing I wanted to do was rewatch your videos... Cheers brother
You are you of my favorite TH-camrs!😂 Your trading and business humor absolutely spot on!
One of your best yet, please do not stop making these....
Just the quality content I subscribed for!
I love your channel. Such a perfect blend of dry humor and knowledge.
You, good sir, are a 💎
Investing in the stock market is the best option to make a passive income. Virtually all the markets are crazy, most people pay more attention to the shiniest position on the graph, I'm keeping a diversified portfolio.
Investing in stock is a good idea, a good trading system would put you through many days of success.
Exactly, the trick is to diversify your investment, don't panic when everyone else is, and invest consistently.
Exactly, the trick is to diversify your investment, don't panic when everyone else is, and invest consistently.
This is the worst possible time in history to invest as so many don't back up their stock assets. More emphasis should be put on day trading as it is less affected by the unpredictable nature of the market. I have been trading with *PRISCILLA DIANE AIVAZIAN* insights and signals.
@@dannyvera8475 Lookup with her name on the web, you will find everything you need to know about her service.
Thanks for the good laughs! Always enjoy your content!
Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control. I'm still at a crossroads deciding if to liquidate my $117k stock portfolio, what’s the best way to take advantage of this bear market?
While there’s more pain to come, investors should look for stocks like Royal Philips NV and Alstom SA that have been beaten down enough that they’re a bargain or get a good portflio manager...
@Gerald Maier I'm trying to find out how to contact this FA since I'm looking for a better investment strategy.
Do what Michael Burry does. Simple as.
Love to see Ben pop up in my notifications.
This was highly informative. The put/call explanation when you put/call the risk of the hedge for it to gain momentum, only for it to fall due to the impending gains of the call of the other thousands of investors calling the implied gains of the graph line to make money in their own pockets.
I recently inherited almost $500k. I REALLY need to make this money work for me, and not just disappear over time. I've been scrambling for somewhere to put the money, where I can make an effort to use the gains to pay bills so I can quit my job . All roads have pointed to the financial market of some sort which is a good idea buh where else should I put money besides the financial market? We have a 13% RPI rate so cash is tough.
@Lloyd Bernard I completely agree; I'm 60 and recently retired with roughly 1.2 million in outside retirement funds, no debt, and very few dollars in retirement funds compared to my portfolio balance over the last three years. To be honest, the role of the invt-advisor can only be ignored, not denied. So do your homework to choose a reliable one.
@@anthonyrussell5718 well a million in profit is a nice milestone, how can i reachout to this advisor of yours?
@@lisaollie4594 Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "LISA ELLEN SHAW" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
@@anthonyrussell5718 Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
I can handle all that financial know how for yuh just trust me and I'll double it in no time
**Hides trimmed rune armor from 07**
the videos just get better and better each time, in both entertainment and educational value. benjamin dont ever stop pls we love you
Furthermore (9:30), one can say that the "sell high IV, buy low IV" works in the long term if 1) we are correct in assuming that volatility is mean reverting, and 2) we diversify across contracts, underlying, and term to maturity to improve the reliability of performance.
Also, what I would guess level 5 knowledge would be: it would probably also utilize Bennett's book and would approach options from the standpoint of a market maker. Firms like Citadel Securities are able to generate (close to) risk-free profits through a combination of bid-ask spreads (i.e., buying at the bid and selling at the ask for the same contract) or arbitrage on slightly mispriced contracts with the same underlying (e.g., if IV is relatively cheap, going long a put and short a call with the same strike and expiration and going long the underlying in a way that completely delta hedges against the options positions, the market maker can essentially no market risk but get a pick up on the underpriced IV). That said, this is much more math-intensive and is much more boring than "diamond hands to the moon" meme investing, but it really the way big institutions make money in the options market.
Where do you find the implied volatility, is that like watching the VIX.
@@guitarsoundsaroundit’s usually quoted next to an option’s price and is expressed in percentage terms.
Yo I really like how ur not so serious while talking about stocks. U make it funny so it helps me to learn more. Thank you 🙏🏼
I love this guy.. I always get a good laugh from your videos. keep up the good work!
As man whose watched lots of Khan Academy videos, repeating 'portfolio value P" in a monotone voice is Oscar winning comedy. Thumbs up.
Hey Ben, this is Ben.
I really appreciate all the info and work you put into this.
Thank you, you made me smile, I like your honesty, sense of humour and straight talking. I wish you well Ben jamin 🎼🎸
Love the way you script things, very TH-cam for dummies. Love it 💗
At this point, everyone should know that a storm is coming. Do yourself a favor and be prepared to buy more; for those who know where to look tho. Only fools sell during a crash. I accumulated over $1.8m in profits alone during the last crash and even pulled it off with ease in a bad economy.
Scammers
Rather than hold during a crash, just sell and then buy back once you see that the crash is over.
@@riverdoge Yes just sell during a crash, its so easy. Why dont all the other people think of that? You cant sell during a crash, nobody is buying. You need to sell before the crash, which is impossible unless you know the future or have insider knowledge
Today I had a whole class about options at college. I could answer to every single question of the professor correctly, even he was impressed. Thank you Benjamin 🔥
Thx a lot for the book recommendation, helped a lot! Keep the good job up !
I always look forward to your vids man, appreciate ya
I wonder how old Benjamin is thinking generation youtube would actually read a 300+ pager linked in a video description. Or if he linked it as a joke knowing that no one can actually read 3 sentences in a row anymore.
😂😂
I actually read this shit, which makes me more sad than the people that skip the link.
What? You lost me at “would actually”
@@Ferdinand208 what? you lost me at "what? you lost me at"
The time invested to skill value graph hits hard man, why did you have to do us like this
Dude, I love you man.... Like seriously, you're humorous is just... "there there are no words".... You rock brother!
Hit me up I have cryptoTrading updates???
For anyone that has watched Khan Academy - that little detail of repeating "portfolio value P" was fucking gold.
literally, the best financial video right here!
When the market was falling Benjamin answered
Hey bro, good stuff here for people looking to take it to the next level.
Great video, great layout, great flow and even a dumb fella like myself can understand plus the humor. Makes it the best options video out there!
This is a really clever thumbnail. Not super interested in the topic but clicked to support good thumbnails. Keep it up! 0:00
This video is soooo good and accurate asf. I'll put myself at level 2, everything after that feels so complicated.
Thanks Ben and keep up the good work ❤️
Ben: "We're sitting on this rock in the middle of infinity and nothing fucking matters, so you may as well spend your useless life making as much money as possible doing an activity that contributes absolutely nothing to society"
Me: Yes Ben, I think about it every day day of my life😐
Investing is not my profession, but I believe that an efficient equity market is hugely important to the stability of the modern economy. So I do think that active investors, quants and traders provide significant value to society.
@@SebastianLopez-nh1rr well not directly but indirectly but in that sense everything contributes but what can u do heart wants what heart wants
@@gauravbhayana4626 Heart wants a 911 GT3 in lime green.
@@CSpottsGaming broom broom my brother 🏎
@@CSpottsGaming 😂
Awesome video, laughed and learned. Thank you so much 🤙🏽
Thank you Benjamin, I watched this whole video and still have barely an iota of understanding of the complexities of option trading.
today is a fantastic day. benjamin uploaded a new video.
Stinky
the fact that i understood this video was reasonably informative but ended up understanding nothing tells me i'm a genius for staying as far away from options trading as possible. Instead, I'll just keep to either going long or short in stocks and lose my money that way.
Really depends, I know a few people that make a killing selling premium, and only buy when there is some major miss pricing. For example, I bought unity at $33 yesterday aiming for the rebound. Had I bought the $35 option at 0.20c about to expire, I could have taken bits out as it went all the way up to $5 and made 25 times my money for a small risk.
Its all about finding asymmetric risk reward.
@@scottydog9997 i understand that of all the people who do it, the top 15% of people are making a killing. In fact, i've tried day trading for a while and i totally understand that some people are really good at figuring out what's going to be a good 1:3 Risk/reward in as little as seconds. That's not me, at least right now. I'd be more likely to feature in WSB's top losers if i tried because i can't quite get my head around it, and more power to you if you can.
@@scottydog9997 what
@@ItsGamein Just buy and hold on strong revenue growth mate, that's the easiest time tested strategy.
Don't worry about options unless you are willing to do the homework.
The TH-cam gods just forwarded me your Channel. Im so thankfull, great content.
Thank you for teaching us to feel again Benjamin...
I will forever appreciate this channel, you've helped my family alot, your videos, advice, lessons and funny words are inspirational and helpful to us. My husband and I have been able to be minimal, conscious in spending, saving and investing wisely, I now earn every week. You're such a blessing to this generation. we all love you
Thanks I will love to be your friend as well as sharing some experience and business lesson about your earning
@@lisaeibergs338 You're welcome, can share some business tips that helped me,
1. Plan towards it
2. Be minimal on spending
3. Save money wisely towards retirement 4. Save to invest, it's a proven way to get richer.
@@carolineM479 Please share more details, I don't want to remain out of ignorance
All about finding the right opportunity in the market and take advantage of it
@@Africa7278 point of correction friend....
this video is a masterpiece. informative, funny, philosophical with a bit of satire
Another Banger Per Usual. It'd be cool if you tested another options strategy. Very fun to watch and educational
Thank you bro. this video really lifted my spirits
You explained so nicely, that I understood everything without much effort :)
I fell in love with options trading . I love the different strategies the math behind it the skill and emotional control you need to have and the fact I can work anywhere and not have to deal with people
I did not understand all of it but i think im gonna be in this rabbit hole for a while. New subscriber here great job!
i love how these videos are satirical but these videos are more informative than most trading gurus
Remember, the less you know, the faster your portfolio grows
For sure there is a thing such as overanalyzing stocks and options.
The people who made the most money with stocks are the ones who had a gut feeling an whent with it.
More degenerates the more money for Theta !Love your content man ,dry wit+humour=Funny.I love how each level has a downward arrow .
Man your videos are just polished as fuck, keep these coming benjamin im counting on you
Been following this channel since 8k subs :)
15:48 this graph and your reaction was the funniest shit - especially considering the drawing joke you made at the beginning hahaha
Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60, therefore I need suggestions on what investments to make.
I've been in touch with a financial analyst ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
@@marcelrobert9569 Would you mind, how do i find the F/A guiding you on dis??
@@charlotteflair1043 I happen to know "Julie Anne Hoover. She has been my fin coach since 2018, no major losses has been recorded. Totally recommend her too.
Amazing, -10 / 10 would recommend again.
Lost only 69% in comparison to the usual 42069% on Robinhood
Love your art style, makes me feel better about myself
Best video about stocks on the internet for all of time. Thank you.
The 5 levels are just the amount of "o"s in the yolooo
So basically options trading is how I can gamble despite being banned at casinos, Neat!
Gotta tell ya. Man do I look forward to your videos man.
I didn't really understand options, but your gourd example really nailed in the concept.
I shorted the nasdaq because of Benjamin 🥰
Ok, great video. I've watched about 5 mins but that seems enough to extrapolate what you'll be saying in the last 12 and as I understand it the message is: "Buy puts. On GameStop or something." Right? Did I get that right? Ok, good. I'm gonna go buy puts. Awesome. 👍
Great video witty and full of humor!
First video of yours I’ve ever seen and it was amazing start to finish lmao
I just sold a covered call on a bank stock this morning... I sure hope I'm at least child level lol
Love how there is a robinhood level and that it is below the child level 😂😂😂
been watching this for a good mjn now…
i feel smart, stronger, my teeth feel whiter. i’m doing good man doing good
Yo bro this is such a breath of fresh air you are so funny with that dry wit dude and it just reminds me that everything is going to be okay
I feel like this had been your funniest video yet! Also thank you for all the value you offer in such an enjoyable way
The detail, theme, and execution on this video is top tier entertainment. We’ll done, Ben.
Hit me up I have cryptoTrading updates???
Have been trading options for 12 years.. this is such a cool description, of how traders think
I am hooked with these comedy investment channels.
I've been using collars to protect my downside(on my long holds) at a fraction of the cost. I also have done quite well with simple puts on the nasdaq and S&P. I do work in asset management for a BB investment bank, but think if people use options as a hedge and not a YOLO, they are great instruments.
P.S. Love the home alone music at the end! Keep up the content - even us institutional guys find it entertaining!
are you people even real
Really nice job, I love the emphasis on losing money and the meaninglessness of it all, this is essential options trader knowledge! Level 5 recognizes 2 key concepts, the first is that you can take a whole options position or portfolio and break it down and aggregate it in terms of its risks (delta, gamma, vega, and skew, and others), and that because of put/call parity puts are calls and calls are puts, just with offsetting underlying stock positions. So we manage and take views on those underlying risks. Delta is directionality, gamma is short term realized volatility, and vega is implied volatility. The second is that unlike a stock, options and portfolios of options and their hedges are what we call "path dependent" meaning that the path the underlying asset takes can determine our profit and loss not just where it ends up at expiry or the time we sell it if it were a stock, so we need to be constantly managing our risks in order to hope to make (lose less) money. And then finally key to level 5 you need to recognize that you can and will lose money and dont sell lottery tickets.
sorry I didn't quite catch that could you please repeat in level 1 terms
Too long don’t read
Assuming you have purchase an option that is ITM, Why would you hold until expiry other than to exercise it? Theta eats away at the options extrinsic value
@@Killingfrenzy4161 this is why no serious person or professional buys ITM options. Any position that is ITM is better represented by a combo of the underlying stock and ATM options. If you buy an ITM option and just exercise it you are basically just setting money on fire.
@@Killingfrenzy4161 no serious person or professional buys ITM options, because you essentially are overpaying for your position. Any ITM options position can be better expressed as some of amount of the underlying stock and ATM options. The reason you buy an option in the first place is for the time value, which is reduced to 0 if you exercise early, which is why you dont do it and you hold to expiry or much more regularly, simply sell the options you are long (and are ITM) rather than exercising them, that way you get paid for the time value (extrinsic value).
The algorithm has been good to me today. I'm glad this was recommended today.
How the heck you manage to put so much information in this short video, and your knowledge of the topic is impressive.....