How Shorting Options Works (Step-By-Step Demonstration)

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  • Опубликовано: 30 сен 2024

Комментарии • 27

  • @projectfinance
    @projectfinance  10 месяцев назад +1

    ✅ [Free PDFs] How Shorting Options Works, Put Credit Spreads, 0DTE Options Trading Intro, Options Trading for Beginners PDF (170+ Pages): geni.us/options-trading-pdf
    What did you think about this video? Leave comments/thoughts below.
    -Chris

  • @mixingjd
    @mixingjd 10 месяцев назад +2

    Selling/writing a option contract is not shorting. It could be construed as the trader’s long or short bias. Also just as with actually being long or short the stock you should have a stop loss and cover your position when the trade goes against you. In your first example of Apple, you failed to point out a added risk with selling options. That risk being the buyer of the option could exercise said option causing you to be on the hook to sell 100 shares per option. Also just as in having a stop loss, you should consider when to close your position with profit instead of letting it go to expiration.

  • @TakingTheRedPill69
    @TakingTheRedPill69 10 месяцев назад +2

    Agreed! I would never sell naked options! I sell options all of the time but I either have cash or shares to protect myself! Never pick up pennies in front of a steamroller! 😅

  • @zo9fg
    @zo9fg 10 месяцев назад +1

    A dive into margin requirements for risk management purposes would cover what others have not

  • @7red7green98
    @7red7green98 9 месяцев назад

    Brother thank you for you. l have question plz
    This Option better than forex market ?
    And if l have small capital 15000 $ I can grow it in long term ?
    I

  • @khongtapatheuangsin1543
    @khongtapatheuangsin1543 5 месяцев назад

    Any body have thoughts on buying puts on stocks that are doing a reverse stock split?

  • @huplim
    @huplim 10 месяцев назад +1

    Thank you Chris!
    Thanks for the dedication of teaching this - dumbing things down for the lay person!

  • @nermaal70
    @nermaal70 10 месяцев назад +1

    Great and effective learning. Thanks for sharing your knowledge.

    • @projectfinance
      @projectfinance  10 месяцев назад

      Thank you for the feedback! I’m glad it helped!

  • @aresera22
    @aresera22 10 месяцев назад +1

    Thanks, Chris love your content 👏

  • @blessedbless977
    @blessedbless977 10 месяцев назад

    Thank you so much Chris God bless you

  • @abdulghaniosman2534
    @abdulghaniosman2534 10 месяцев назад

    tq very educational

  • @tanidasaksit1295
    @tanidasaksit1295 10 месяцев назад

    Hi Chris, I am taking your course, but I have a very small account size. What minimum account size you would suggest?

    • @projectfinance
      @projectfinance  10 месяцев назад +1

      I would say $2,500 would be the bare minimum, ideally $5,000+. I am working on a new section now though that will have single-contract costs that will be very accessible in a $2,000-$2,500 account (even $1,000, but the % of account at risk goes up with smaller accounts which is why I recommend more).

    • @tanidasaksit1295
      @tanidasaksit1295 10 месяцев назад +1

      @@projectfinance Great thank you for replied I'm looking for..

    • @projectfinance
      @projectfinance  10 месяцев назад

      @@tanidasaksit1295 You can leave comments in the course below the videos too

  • @seanburke4107
    @seanburke4107 10 месяцев назад +1

    Just to be pedantic, you can't go "short" an option. You can only buy/sell to open/close.

    • @projectfinance
      @projectfinance  10 месяцев назад

      I see what you mean if we define shorting as borrowing

    • @merchantmareed
      @merchantmareed 10 месяцев назад

      ​@@projectfinanceI felt your whole video should be about "naked short calls and puts"
      The way you speak about it doesn't seem to match up with the terminology I have found common in options tutorials and articles.

    • @kashifmehmood-ca
      @kashifmehmood-ca 10 месяцев назад

      Please do not cut corners by giving just half information. Most brokers do not allow them without having margin account.

    • @andrewm6786
      @andrewm6786 10 месяцев назад +2

      You are being pretty generous here. This whole comment section is complaining about the word short but every professional in finance I've ever heard talk about this uses short the way you are using it in your video.
      The people nit picking here do not know what they are talking about imo

  • @Mora41
    @Mora41 10 месяцев назад +1

    ALL shorting should be banned

    • @c.s1393
      @c.s1393 10 месяцев назад +3

      Nope, has valid uses

    • @mixingjd
      @mixingjd 10 месяцев назад

      His terms are not correct. Selling a naked call option is NOT shorting! Buying a Put option would be considered “short biased” or “bearish”.

    • @唐唐琦-d4q
      @唐唐琦-d4q 10 месяцев назад

      ⁠​⁠@@mixingjdwhy selling naked call is not shorting. can u plz explain . Im starting to study options.