The BIG Basics of Day Trading Options [Online Guide]

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  • Опубликовано: 18 июн 2024
  • If you are brand new to the stock options market and wanting to learn how to trade options, then this online guide is for you! Let's talk about the big basics of day trading stock options. In this online guide I will show you the various areas of stock options that will help you best understand them in the quickest amount of time. What is the options market? How does the options market work? How much money do you need to trade stock options? I will cover those questions and many more. One of the biggest benefits of the stock options market is how it allows traders with smaller accounts to get involved with higher priced stocks. This will open up many more opportunities compared to having to trade penny stocks and other shady stocks that exist online. As a far warning, if you are someone looking for a massively in-depth mathematical based course on options, this will not be the online guide for you. This guide is intended for those beginners who want to day trade options, but have a very little understanding of how options work. My goal is to insult your intelligence as I show you just how easy understanding options can be and help get you started in pursuing your options trading journey! Let's get to it!
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Комментарии • 209

  • @deyashalash7976
    @deyashalash7976 3 года назад +28

    Best thing about Clay he always simplifies complicated stuff. thank you

    • @claytrader
      @claytrader  3 года назад +5

      Happy to help!

    • @tecnolover2642
      @tecnolover2642 3 года назад

      Actually none of investing, trading etc is very complicated. Its just stuff not known by everyone. None of it requires high math skills for example,, just simple arithmetic.

    • @claytrader
      @claytrader  3 года назад +1

      @@tecnolover2642 agree

  • @MakeMeEggs
    @MakeMeEggs 3 года назад +5

    I have been watching your live day trades and I am extremely inspired/motivated to learn how to trade options. I’ve made decent profit from swing trading them but also I have lost a decent chunk of change. It’s time to stop being so lost and confused in the market. Really appreciate your knowledge and wisdom Clay.

    • @claytrader
      @claytrader  3 года назад +1

      I hope you consider my program!

  • @davidandronicomusic
    @davidandronicomusic 3 года назад +15

    Thanks for another amazing video, Clay. This is exactly what I've been planning on sitting down to learn and you're a great teacher.

  • @vendrickthegreat7774
    @vendrickthegreat7774 2 года назад +12

    You explained it extremely well. Thank you for making my life easier!

  • @KeiraR
    @KeiraR 3 года назад +2

    Great video Clay. I really appreciate your simple and unpretentious teaching style 😁. I also get a laugh out of your lighthearted responses to trolls in the comments on your videos. Keep being you and keep up the great work! 😊

  • @eugenejackson9956
    @eugenejackson9956 Год назад

    thank you Clay. you are amazing. simple with no fluff.

  • @lbjoshbal
    @lbjoshbal 2 месяца назад

    Thanks for this. It took me about five times watching this to understand the basics of options. I know that you made it as simple as possible. I’m just that slow at understanding it. Awesome video.

    • @claytrader
      @claytrader  2 месяца назад

      Glad it was helpful!

  • @Ezel21love
    @Ezel21love 3 года назад +1

    This is the best Trading Channel on RUclips. I have been subscriber since 2017 and I learned a lot. Thanks man

  • @jamesramos124
    @jamesramos124 3 года назад

    Thank you so much for this class professor. 👍

  • @SwiftlyKing
    @SwiftlyKing Год назад

    Thanks for helping me understand! Is there a video I could go to next to learn about the more advanced stuff like that bid/ask stuff?

    • @claytrader
      @claytrader  Год назад

      Those videos all exist here claytrader.com/takecontrol

  • @AhmadAlZA
    @AhmadAlZA 3 года назад +2

    This is absolutely basic, if I was new this would be great. Well done

    • @claytrader
      @claytrader  3 года назад +3

      Thanks for confirming the "basic" nature that was intended. Cheers!

  • @grantmullins3913
    @grantmullins3913 Год назад

    This video is the first one that made sense to me I was able to stay engaged the whole video and learn

  • @ExploringAlpha
    @ExploringAlpha 2 года назад

    You're amazing. The way you simplify things to the absolute tee is amazing. God bless you.

    • @ExploringAlpha
      @ExploringAlpha 2 года назад

      The idea of putting cup for call and toilet for put is a great idea :D :D

    • @claytrader
      @claytrader  2 года назад

      Happy to help!

  • @Jnunez17
    @Jnunez17 4 месяца назад

    100% Correct. I’m no expert but this is the only video that I’ve seen that explains the following.
    Buying a Call option and stock price rises: Option Value Rises
    Buying a Put option and stock price lowers: Options Value Rises
    *people usually get confused when buying a PUT thinking the value of the option will lower if the price of the stock lowers.

    • @claytrader
      @claytrader  4 месяца назад

      Yeah, that part can get a bit confusing for people.

  • @williamp2359
    @williamp2359 3 года назад +1

    I've noticed that you've been trading options lately. Since I tend to trade stocks for longer periods of the time during the day (still a day trader, just not looking to be done in 30 minutes), I prefer to short calls. If you get in at the right times, the decay works in your favor.

    • @claytrader
      @claytrader  3 года назад

      Thanks for the thoughts!

  • @lucatonipeperoni
    @lucatonipeperoni 6 месяцев назад

    Hey clay, hope you see this comment.
    Thanks to you, I started trading options in the beginning of 2021. Reason was my small cash account of 5k and with options I had a faster settlement.
    I focused 100% on trading options only, managed to get to 25k and changed to a margin account. Since then I trade mostly vertical spreads in either direction. It‘s not all from trading but I‘m just about to hit 100k, and things starting to really take off. I do trade besides my normal job and hope I can someday trade fulltime, even if its in 10 years 👍🏻

    • @claytrader
      @claytrader  6 месяцев назад

      I hope you consider joining our community! Lots of option traders in there :-) claytrader.com/team/

  • @aak48
    @aak48 3 года назад +1

    Once again, you are the GOAT,
    May the universe shower you with infinite blessings and gifts, may you and your family thrive in all areas in life.
    Thank you ❤️

  • @matthewfelker907
    @matthewfelker907 3 года назад

    Thank you. Options hurt my brain far less now. I needed that.

  • @sunshineandhappiness6014
    @sunshineandhappiness6014 2 года назад

    Thanks clay great teaching !!!

  • @RemusDBD
    @RemusDBD 3 года назад

    great explanation. Thank you Clay.

  • @alexandrerodrigues4434
    @alexandrerodrigues4434 7 месяцев назад

    Thanks for this amazing video, I didn't have a knowledge about about Trading Options, but now I'm starting to understand it. 😁😁

    • @claytrader
      @claytrader  7 месяцев назад

      Glad it was helpful!

  • @lilweirdo_o7859
    @lilweirdo_o7859 Год назад

    This helped me out so much I really do appreciate it

  • @ExploringAlpha
    @ExploringAlpha 2 года назад

    Question when multiplying the value of the contract by 100 to find out how much money you need in your account to buy that contract. Do you multiply 100 by the strike price? or the bid/ask price? Thank you very much.

    • @claytrader
      @claytrader  2 года назад

      I cover this in the video.

  • @franciscosanchez3153
    @franciscosanchez3153 3 года назад

    omg tks so much that help me a lot👍👍👍

  • @isaacsogunro5179
    @isaacsogunro5179 Год назад

    Great explanation! I understand now. Thanks!

  • @Papa3Boys
    @Papa3Boys 3 года назад

    Love the training. Was wondering though if you would be willing to Group together all your options video together...all your stock videos together...all your day trade videos together...etc? It would help me go from one video to the next on the same trade topic ...

    • @claytrader
      @claytrader  3 года назад

      My structured learning is here: claytrader.com/takecontrol/trading-freedom-pathway-how-it-works/

  • @aquahit2622
    @aquahit2622 Год назад +1

    still the best explanation I've seen on all of youtube fs.

  • @drewfickett9555
    @drewfickett9555 2 года назад

    Hey Clay I was interested in your course for trading, but its a little out of my price range. is there a book on options trading that you would personally recommend. love the no bullshit personable videos. seems like your a regular guy that's just passionate about trading. all about the process. lmk thank you.

    • @claytrader
      @claytrader  2 года назад

      You could do this: claytrader.com/takecontrol/trading-freedom-pathway-how-it-works/

  • @joweefaithcorona8540
    @joweefaithcorona8540 2 года назад

    thank you for this!!

  • @bwasfpv
    @bwasfpv 3 года назад +1

    awesome stuff bro,,this will help me tremendously

  • @MH-pr2gc
    @MH-pr2gc 3 года назад +1

    You're very good at teaching!

    • @claytrader
      @claytrader  3 года назад +1

      Thanks! Glad it could help!

  • @brandonchezem7250
    @brandonchezem7250 Год назад

    Blessed to have your guidance

  • @datugyud
    @datugyud 3 года назад

    Hi Clay. I haven't done any short vol strategies yet (complex to me) and just buy calls or puts. When someone is short volatility, I'm assuming its a mixture of buys as well as sells (option writing). Is this the reason why funds are called 'hedge funds' because of these mixture of legs?

    • @claytrader
      @claytrader  3 года назад +1

      Exactly!

    • @datugyud
      @datugyud 3 года назад

      @@claytrader Ah ok, thanks!

    • @claytrader
      @claytrader  3 года назад

      @@datugyud you're welcome!

  • @bhii9426
    @bhii9426 3 года назад +1

    Would it be 100x the bid / ask? Then after that multiply it by the # of contracts? Hopefully I'm understanding that correctly.

    • @claytrader
      @claytrader  3 года назад

      it's the value of the contract. No matter if it is the 'bid' or the 'ask'.

    • @bhii9426
      @bhii9426 3 года назад

      @@claytrader Thanks for replying, keep up the great videos.

    • @claytrader
      @claytrader  3 года назад

      @@bhii9426 cheers

  • @ims0done346
    @ims0done346 3 года назад +1

    Let’s get it clay been watching for a bit and I just got into the stock market 📈 5 months ago you’ve helped me gain knowledge and give me confidence ! Turned my 1k to 15k in 3 weeks keeps the videos coming!

    • @claytrader
      @claytrader  3 года назад +3

      I hope you consider taking a small piece of that $15,000 and join our community!

    • @moistdlux3863
      @moistdlux3863 3 года назад +1

      @@claytrader ive been watching for a few years now, and i was scared,no confidence to really do it. Debt didn't help either. I intend to join soon. Thank you for everything you've put out for free on here. Helped a lot of people. Even if it was only 10 or 20 bucks at a time. Thank you.

    • @claytrader
      @claytrader  3 года назад

      Cheers and thanks!

  • @zakirelias4799
    @zakirelias4799 Год назад

    Thanks clay I learned a lot from this video

  • @gidsmono8044
    @gidsmono8044 2 года назад

    This guy is damn good. Watched his futures videos.

  • @thatsketchyboi6688
    @thatsketchyboi6688 4 месяца назад

    they say if you can explain something complicated simply then you have mastered it. ..... this guy is definitely a master.

  • @valiantvee8516
    @valiantvee8516 3 года назад +5

    I remember it: "Call" rhymes with "Tall(high)" and "Put" rhymes with "Foot(Low)"

  • @itsmldvn
    @itsmldvn 3 года назад

    Thank you for this, could you show us how to initiate options?

    • @claytrader
      @claytrader  3 года назад

      This broker offers options ($0 fees) - claytrader.com/videos/the-stock-trading-platform-for-traders-on-a-budget-best-app/

  • @ahmega
    @ahmega 3 года назад +1

    Microsoft is looking kind of double toppy on the daily chart. I might get some put contracts on Monday.

  • @jayalias2335
    @jayalias2335 2 года назад

    I started with the wheel strategy about 4 months ago, because my dividends weren’t building fast enough. It’s been going well but, I have a feeling I can make more money swing or trading options. Will starting off with a sell and swing trading it with a buy be a good strategy? This why time will work for me not against?

    • @claytrader
      @claytrader  2 года назад

      if you're interested in "talking options/stocks/trading in general", you are more than welcomed to join my private community - claytrader.com/team/

  • @007meri
    @007meri 10 месяцев назад

    Thank you !!!

  • @jpwillkill
    @jpwillkill 3 месяца назад

    Thanks I got it.

  • @aidanstapleton8665
    @aidanstapleton8665 2 года назад

    other than the fact an option has a time difference what's is the diffrence between buying 1 put Contract and buying 100 shares of a stock ?

    • @claytrader
      @claytrader  2 года назад

      Much less money required.

  • @preetbhele7924
    @preetbhele7924 Год назад

    perfect video for someone new

  • @Comrade4213
    @Comrade4213 5 месяцев назад

    Great video! love the quality.

  • @moesadr3342
    @moesadr3342 Год назад

    What are your screening criteria recommendation to find good options for day trading? (Calls or Puts only). What should I look for (e.g. IM.Volatility, Volume, Open Interest , Liquidity or .....)?

    • @claytrader
      @claytrader  Год назад

      These are the types of things I talk about with premium members, and if you're interested in "talking stocks/trading in general", you are more than welcome to join my private community - claytrader.com/team/

  • @stocktalk9302
    @stocktalk9302 3 года назад

    What’s collateral in options and when do they come up in options?

  • @rochester3
    @rochester3 3 года назад

    nice...can you please make a video about selling calls and put options for income

    • @claytrader
      @claytrader  3 года назад

      That's part of this: claytrader.com/takecontrol/

  • @morganhemingway5262
    @morganhemingway5262 3 года назад

    This might be out-of-line go ask but what about , sense he seems to be the tech behind the scenes, having nick do a video about setting computer scene up. Not the build but the actually screen. Kinda the way you have it on most if your daily reviews...
    Again sorry if the question was out of bounds....
    Col. Morgan Hemingway

    • @claytrader
      @claytrader  3 года назад

      I offer this: claytrader.com/videos/trading-computer-my-day-trading-monitor-setup-explained-how-to-guide/

  • @LolTroll217
    @LolTroll217 2 года назад

    Never heard the toilet explanation but it works great 😂 love it

    • @claytrader
      @claytrader  2 года назад

      LOL... cheers

    • @shannonp4037
      @shannonp4037 2 года назад

      I came up with "short put" like shot put.

    • @claytrader
      @claytrader  2 года назад

      @@shannonp4037 makes sense to me! good one!

  • @couchpotato684
    @couchpotato684 2 года назад

    Thanks.

  • @marlonbarrentine6268
    @marlonbarrentine6268 4 месяца назад

    Thanks man

  • @chistianjoshua9498
    @chistianjoshua9498 Год назад

    Quick question, so I need a broker and a trading platform ?

    • @claytrader
      @claytrader  Год назад

      Yes. This is a good starting one: a.webull.com/i/ClayTrader

  • @harjinderkhabra5780
    @harjinderkhabra5780 2 года назад

    Thanks

  • @Annisa_Jordan
    @Annisa_Jordan 4 месяца назад

    Thank you for a response video. Watched it learn a lot from it. I need help clay wish I can reach out and learn more from you.

    • @claytrader
      @claytrader  4 месяца назад

      Join my community here: claytrader.com/team/

  • @zabimerzai9937
    @zabimerzai9937 Год назад

    thanks buddy

  • @Digitalsoundmachine
    @Digitalsoundmachine Год назад

    Thanks clay!

  • @nickalgiere8280
    @nickalgiere8280 2 года назад

    Video deserves more views

  • @zukomemes190
    @zukomemes190 2 года назад

    22:00

  • @aplacetorelax1171
    @aplacetorelax1171 2 месяца назад

    Clay, so if at expiration date your option is at the strike price you will not make any money right? You always want to be above your strike price with a call, below with a put, strike! your out?

    • @claytrader
      @claytrader  2 месяца назад

      If you're day trading them, that is irrelevant.

    • @aplacetorelax1171
      @aplacetorelax1171 2 месяца назад

      @@claytrader I have a cash account and I am learning about options, a lot of things are confusing.

    • @claytrader
      @claytrader  2 месяца назад

      great!

    • @aplacetorelax1171
      @aplacetorelax1171 2 месяца назад

      @@claytrader so am I right?

    • @claytrader
      @claytrader  2 месяца назад

      @@aplacetorelax1171 somewhat. There are other variables that need to be factored in. Harder to explain here.

  • @Nobility209
    @Nobility209 10 месяцев назад

    what about a sell call and sell put?

    • @claytrader
      @claytrader  10 месяцев назад

      Then you would want the opposite.

  • @tydortch3063
    @tydortch3063 6 месяцев назад

    So where would the options theory and mathematics videos be at?

    • @claytrader
      @claytrader  6 месяцев назад

      I'm sure someone on RUclips goes into all the equations.

  • @drezpodcast
    @drezpodcast 3 года назад +1

    Why do you see 'PUTS' that have a strike price higher than the price of the stock. Example the stock is trading for $8 and you see 'PUTS' with a $9 or $10.00 strike price. Thanks

    • @claytrader
      @claytrader  3 года назад +2

      Because that is a price level associated with the stock. "Why" or "If" it matters depends on your personal strategy.

    • @drezpodcast
      @drezpodcast 3 года назад +1

      @@claytrader when I think of a put I think of the stock going below $8 not going up to 10 if I buy a PUT, that's all.

    • @claytrader
      @claytrader  3 года назад +3

      @@drezpodcast right, at "that" moment in time... but what if the stock goes up to $11... at that moment maybe the $10 put would make sense.

  • @sweardesigns
    @sweardesigns Год назад

    Great

  • @jahkotime
    @jahkotime Год назад

    can you show us different strategies

    • @claytrader
      @claytrader  Год назад

      I do that as part of this: claytrader.com/takecontrol/

  • @AdrianoC_
    @AdrianoC_ Год назад

    So if a contract value goes down you are loosing money, and if a contract value goes up your gaining money?

  • @johncoruna
    @johncoruna 3 года назад

    👍🏻👍🏻

  • @alexreddick6970
    @alexreddick6970 2 года назад

    lol clay acts like he would really completely FORGET what a put option is without the toilet reference

  • @jammydodger222Xxd
    @jammydodger222Xxd Год назад

    Man no matter how many people try and explain options to me I still don't get it 🤣.
    People talk about selling options as if you're 'writing' them so then if the option is exercised by the buyer you have to buy the stock at market price and then sell it to them at the strike price.
    But can you also sell an option you've bought back to the market at whatever the price of the option is when you sell it?
    And if someone does exercise an option you've sold what happens then? Does the broker automatically buy the stock at market price and charge you for it?

    • @claytrader
      @claytrader  Год назад

      Those are not the "basic" questions. I address all those in my advanced classes.

    • @jammydodger222Xxd
      @jammydodger222Xxd Год назад

      @@claytrader okay, in fairness I haven't reached the options part of the claytrader University yet so I take it those questions are all included in that?

    • @claytrader
      @claytrader  Год назад

      indeed

  • @saurabhakumbhare
    @saurabhakumbhare 3 месяца назад

    Can we trade options from the UK?

    • @claytrader
      @claytrader  3 месяца назад

      I believe so. I don't think they're illegal there or anything.

    • @saurabhakumbhare
      @saurabhakumbhare 3 месяца назад

      @@claytrader just struggling to find a platform which can help. On another not, your videos are great. Keep up the good work.

    • @claytrader
      @claytrader  3 месяца назад

      look into Interactive Brokers

    • @saurabhakumbhare
      @saurabhakumbhare 3 месяца назад

      @@claytrader yeah looked. Extremely costly. Might give tastyworks a try.

    • @claytrader
      @claytrader  3 месяца назад

      they're good too.

  • @daddyinspanish
    @daddyinspanish 9 месяцев назад

    The matrix numbers 😂

  • @hectorcastro9399
    @hectorcastro9399 10 месяцев назад

    I love you

  • @devinhoaglin7088
    @devinhoaglin7088 Год назад

    What’s funny is if people pay for his course they’ll make their money back in a day 😂

    • @claytrader
      @claytrader  Год назад

      But, but, but... didn't you know I'm a scammer for charging money?

  • @onlyvans8519
    @onlyvans8519 2 года назад

    Call up.
    Put down

  • @hanumantham9238
    @hanumantham9238 2 года назад

    Amza

  • @spontaneousbootay
    @spontaneousbootay 3 года назад

    Technically they are signed in blood. By whomever loses lol

  • @jayalias2335
    @jayalias2335 2 года назад

    Call up , like a phone. Put down like an insult

  • @raymundvalderrama
    @raymundvalderrama 2 года назад

    I day trade options cause time decay is a bitch

  • @thirdiview1230
    @thirdiview1230 3 года назад +14

    If you make your content absolutely free you will bring an unprecedented amount of subscribers because the 99% are broke and that’s in the millions clay...

    • @claytrader
      @claytrader  3 года назад +6

      I have lots of free content.

  • @lexlevi1
    @lexlevi1 Год назад

    He wanted to get a million views like everybody else 😂

  • @timepiecetrading5684
    @timepiecetrading5684 3 года назад

    Clay just put all your money on AMC bud and you’ll be able to afford the Rolex you always wanted. You know it’s gonna be a short squeeze just watch the Ape Father on RUclips he mention you in his videos. He called you a weak ape lol.

    • @claytrader
      @claytrader  3 года назад +5

      He called me a weak ape? That's insulting he called me an ape at all!

  • @akinorikosaka2753
    @akinorikosaka2753 3 года назад

    A new Bitcoin Mining Council has been created to improve the crypto-currency's sustainability, following a meeting of "leading" Bitcoin miners and Elon Musk.

    • @claytrader
      @claytrader  3 года назад

      Thanks for the comment, I'm not quite sure the relevance to this video though?

    • @akinorikosaka2753
      @akinorikosaka2753 3 года назад

      @@claytrader why do you say so?

    • @claytrader
      @claytrader  3 года назад +1

      @@akinorikosaka2753 ummmm

  • @ZhangtheGreat
    @ZhangtheGreat 3 года назад

    Instructions not clear, keeping my OPTIONS open
    *sound stupid joke horn*

  • @tya1687
    @tya1687 3 года назад

    basic lol nothing is basic in trading, get ready to lose money lol

    • @claytrader
      @claytrader  3 года назад +1

      Why do I get the feeling you didn't actually watch the video?

  • @billjohnson1898
    @billjohnson1898 Год назад

    Bro there’s a way easier way to explain this.. no offense but any beginner who finds this video is gonna be immediately confused right off rip. Don’t overcomplicate things man just say what you’re saying. You talked about options contracts for 10 minutes without even saying what the hell they are 😅 🤦🏼‍♂️

    • @claytrader
      @claytrader  Год назад

      No offense taken. Also, no offense to you, but if you think you speak for "all beginners", then yeah... you're living on Mars.

  • @younisazizi
    @younisazizi Год назад

    waste of time

  • @dyonisis7681
    @dyonisis7681 14 дней назад

    you talk waaaay too much about nothing. I know more about toilets now than I do about options. why don't you actually have option order box set up and walk through the process from start to finish? Not a chance in the pit of Hades would I spend a dime on your course. 32 minutes of my life wasted on your gas passing. Your video, is no different than a car salesman trying to sell a car to someone, with no car. Never again will I waste a second on you.

    • @claytrader
      @claytrader  14 дней назад

      Thanks for the feedback. All the best to you on your journey!