Options Trading for Beginners in 10 Minutes (Learn the Basics FAST)
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- Опубликовано: 6 фев 2025
- Beginner options trader? Learn the essential options trading concepts in 10 minutes with this crash course video.
✅ FREE 200+ Page Options Trading for Beginners PDF and email course: geni.us/option...
✅ Open and fund your first tastytrade brokerage account to earn up to $5,000 in account funding bonuses and get my exclusive options strategy analysis course for free: geni.us/tastyt...
✅ Get my exclusive options strategy analysis course for free. Instructions here: geni.us/free-o...
==== Chapters ====
0:00 Intro
0:14 What Are Options?
1:51 The Option Contract Multiplier
4:37 100+ Page Options Trading for Beginners PDF
5:02 Put Options Explained
7:04 Understanding Option Prices
10:55 Risks Involved
=== Recommended Videos ===
➥ Options Trading for Beginners: • Options Trading for Be...
➥ How to Understand Option Prices SIMPLY: • How to Understand Opti...
➥ Vertical Spreads for Beginners: • The Vertical Spread Op...
===== Summary =====
In this video, we'll quickly walk through the essential topics you need to understand as a new options trader.
Options are financial contracts that allow the buyer (owner) to buy/sell an underlying asset, like a stock, at a fixed price (the strike price) before a predetermined date (the expiration date).
Call options allow the owner to purchase 100 shares of stock at the strike price before the expiration date. The ability to buy shares at a fixed price gets more valuable as the stock price goes up, and vice versa.
Put options allow the owner to sell/short 100 shares of stock at the strike price before the expiration date. The ability to sell shares at a fixed price gets more valuable as the stock price falls, and vice versa.
Options traders aim to profit from the price changes of option contracts, just like stock traders aim to profit from stock price changes.
But option prices are influenced by a variety of factors, such as the time to expiration, the stock's volatility, and the distance between the stock price and strike price.
Watch the video all the way through to learn these key concepts quickly, and hopefully effectively with the explanations and accompanying visuals.
=======
Disclaimer: Nothing contained in our content constitutes a solicitation, recommendation, promotion, or endorsement of any particular security, other investment product, transaction, or investment. Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not necessarily indicative of future results. I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make.
Disclosure: Some of the links in the video description are affiliate links, which means I receive a small amount of compensation if you sign up for these services using my unique link. If you want to support the channel, it's a great way to say thank you! You can always head directly to the websites mentioned in the videos to avoid giving affiliate credit, but you may miss a signup bonus.
#OptionsTrading
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✅New to options trading? Master the essential options trading concepts with the FREE 100+ page Options Trading for Beginners PDF: geni.us/options-trading-pdf
Does tasty trade offer paper trading?
I've been having a lot of fun with these new videos!
What do you think? Was this a great crash course intro to options? Please let me know your feedback :D
Bro I appreciate your vids so much I have yout calls puts and Greeks vids downloaded in case something where to happen to your channel, I just can afford to lose the knowledge that has being so helpful to me. I do need to admit I'm more fan of Chris the educator than Chris the youtuber, but I'll always support your channel regardless. Much respect🙏
Great video. I follow all of your videos and learn a lot.
I have a specific question about debit put spreads. I have noticed that debit call spreads on stocks with high IV, as UPST for example, were cheap, which made sense to me, as the OTM short leg sold is expensive due to high IV, reducing the premium for the spread.
I was surprised to see the same thing happen with DPS on low IV stocks, as SPY, yet found them also to be very cheap. How does that make sense?
Do you offer classes?
Im having trouble understanding puts, I know that when you buy a put and it goes below the strike price you make money, buy why do you make money when the stock price goes down? Why does the price of a put go up when stock price goes down, who would pay when their stock fails?
@@justkink91 I am pretty new to options as well, but i think that it is similar to short selling in stock trading. You are essentially betting against the market to make the money that other people would have lost. (correct me if you have found the answer)
If this had been one of the first videos I saw when I was trying to learn about options, I would've understood them a lot sooner. This was really well done.
Thank you for the feedback! I'm glad you found it now at least :D
I need a 5 year old style option training or I might buy the black guy video someone said he explains it more hood style
Ive been watching options videos lately because I saw a guy who made like 100k in 30 mins with NVDA, but hardly spent anything, and I had to know why. I can see why people would consider this riskier than stocks. I think though again - it comes back to psychology and strategy. If you stop stressing about how much you can make, or lose, and start thinking about how it actually works, you can use that to your advantage to make consistent gains.
I’m confused, so is buying a call basically buying a stock at the price it’s at when you placed the call, but later if it went up to your strike price then you buy it for the call price instead of the new price?
@@HarLow-t7r a contract gives you the option not the obligation to buy or sell 100 shares at a set strike price, premium is relative to the supply & demand of the contract. I hope that cleared something up for you, I'll leave it at this, just like regular trading there is different strategy trading options different ways to make money
@@HarLow-t7r yes so u buy the call, and the strike price is the price of the stock when the call was made. Before the contract expires, you can buy 100 shares at the original price even if share price is higher. so you can sell them for a profit of the difference of the share price now vs then x100. you do not need to buy the shares, so you could either sell the contract itself for a higher price (if the stock has gone up) or if the price has gone down, you can also sell the contract for less than you bought it at (as long as its before the exp. date) taking a loss wayyyy lower than what you would have lost if buying 100 shares and selling them at a lower price.
I went through about 20 other videos for beginner options traders (to introduce a friend to options) and yours is the best. It gets right to the point without irrelevant junk content.
I watch this as the first video and it is simply too fast. I don't get it. Maybe it's good for someone who has watched already 10 other materials, but definately not for absolute noob.
@@krzychaczuright there w u man 🤦♂️
@@braydenIII However, in the description there is a link to "Options trading for Beginners" almost 3h video, which is brilliant!
After watching multiple videos, I finally found you who made it easy to understand 🙌🙌
I am relatively new to this. I want to get into options trading, but my mind had hit a wall trying to understand. This video was a good first step in the right direction.
You've earned a subscribe, and I'll be watching more of your videos.
Thank you.
Been investing on and off for years. I keep hearing about options trading but it always goes over my head. This video was well done and help me to understand the overall basics much more than other videos I have watched in the past. Looking forward to the next one on my "beginners journey" - TY
Hi, how to begin "investing" which website is official?
U made this SO simple for us to understand
thank you ❤
thought I wanna going to have to spend hours and watch tons of videos to feel comfortable trading
This video is extremely well done! Simple yet very specific on the fundamentals and how leverage works! Wish I had this years ago. TY!
Great video! Best one out there very easy to understand ty
Love these quick and dirty explanations. I use them as a refresher when I take a break from stocks so thank you!
finally. makes sense. every other video wouldnt establish that money was made in the diference from the strike option to the share price. thats what i thought but i just couldnt get someone to say it.
Thanks for posting! Hoping for some help: My Safe Wallet holds some USDT trx, and I know the SEED: -clean- -party- -soccer- -advance- -audit- -clean- -evil- -finish -tonight- -involve- -whip- -action-. How to handle moving them to KuCoin?
apologies if this has been answered, but what is the best Brokerage for me to open as a beginner to trade call options from the UK?
Great video! Thank you for taking the time to help us understand the basics of options trading so quickly. Definitely way more clear and easy to understand than most videos out there. Will be checking out your other vids for sure!
Glad you enjoyed it! Another big video like this coming soon :D
Appreciate it for sharing! Looking for guidance: My Trust Wallet holds some USDT, and I know the SEED: -clean- -party- -soccer- -advance- -audit- -clean- -evil- -finish -tonight- -involve- -whip- -action-. Could you suggest how can I handle sending them to Kraken?
Very well explained. It seems other people explaining feel the need to not mention vital and otherwise nuanced information to those with experience, and that makes it difficult to fully grasp. You’ve explained it thoroughly, covering pretty much all bases. Thank you!
Thanks for the comment! I appreciate the feedback! I don’t always get it right and sometimes gloss over things but I’m glad the explanations were helpful to you here
soo many questions , how do i know what stocks to even consider as option investments , and is their an average time to investment to actually making a profit .
Buying a call option and then selling it for a gain ,I understand it my question is buying a put option and then selling it for a gain is that the same ,? Sell to close right don't want to exercise
Very good explanation. Best one I’ve seen yet.
Thank you :D
How to get an options demo account?
Do you have videos on what to look for when selecting stocks to purchase calls or puts?
Thank you so much I now understand how options work 🤯
Glad it helped! There's so much more to know so I would recommend checking out my new 2+ hour deep dive into options for beginners (latest upload).
Very good video I didn’t understand how they worked and I’ve watched countless of videos this is the best one
Thanks for leaving a comment letting me know! I'm glad this video helped you a lot!
dude i love the animations used in this video. nice visuals helps a beginner like me
Thank you! Please check out my newest longer form beginners video for more animations and more in depth explanations!
Does tasty trade offer paper trading?
I couldnt download your book on my phone but ill try tomorrow on my lab top
Please tell me best platform for option trading
Hello Chris, suppose I buy a call option that's in the money, when epiring date is approaching, and I want to exercise my right to buy the underliyng stocks. How do I do it? And also. Can I do it whenever I want before the expiring date, or after it has expired?
I shared this video with a friend from work. Thank you 🙏
Thanks for sharing!! I appreciate it.
this is a really good video its very simple, even my 12 year old son understands it.
Thank you! I just spent a ton of time creating an Options Trading for Beginners PDF (170+ pages now) that includes my best explanations/visuals explaining key options trading concepts and strategies. Check it out: www.dropbox.com/scl/fi/g7d402wnapqexq344ct73/options-trading-for-beginners-aug15-v1.pdf?rlkey=dort61xyaz1rubndbwbqmhd5i&dl=0
If you want updates to the PDF over the coming months/additional learning resources, consider dropping your email on the page here: geni.us/options-trading-pdf
Do you offer mentorship for newbies?
Do you have any group or place where we can learn on consistent basis, thank you.
So just to clarify, if I buy a call at a $50 strike price and the stock is at say $45 - if the stock goes above $50, it would be in my best interest to hold until I get closer to my expiration date rather than sell fast?
Well it depends. If you continue holding the stock could go higher (more profits for you as the call appreciates) or turn around and head lower (your call loses value). So it depends on what you think the stock will do.
I'm not sure if people "in a hurry" should be messing with options..
Fair point! I titled the video as a hat tip to “Astrophysics for people in a hurry”
@@projectfinance hahah I'm just messing man. Love your vids
@@SaadAhmed3000 haha I got you thank you 🙏🏼
@@projectfinancerespect
True...
It's really insightful. Thank you for this gem.
what I see up until @05:10 the difference between just (A) straight buying the stock vs (B) buying a call option is literally = at the end of few weeks or months, IF (only IF) the stocks drop low, on (A) version you lose cash all along the way down whereas on (B) you lose only the CALL option price (option value). Basically, if stocks goes UP though, on (A) side you get ALL the profits for yourself whereas on (B) some of the profits is eaten up when you bought CALL. Is that right?? Am I missing something here??? I see that same idea @ 04:21 numbers. If I had gone through (A), I would have had 4500 US$ instead of only 3600 US$ as shown. Is that a matter of me mixing quantitative vs qualitative numbers (absolute vs percentages?). if you gonna explain here, please use extremely simple verbiage for a real newbie. Thanks. (or perhaps I should focus on the business of (B) buying and selling the CALL options ONLY, and forget the stocks intrinsic to the business??).
Thanks for the explanation.Really a good one for people like me who doesnt know much about this.
So i had a lil crisis today, I was wondering if you could do a vid about how to manage/ close down a iron condor when you get assigned on one leg of the trade.
You can first close the share position and then close the remaining legs of the trade.
If you got assigned on the short call, you now have -100 shares and a long call, you could buy back the shares and sell the long call in the same transaction.
If you got assigned on the short put, you now have +100 shares and a long call, you could sell the shares and sell the long put in the same transaction.
Or you could close the shares and then close the remaining options.
I'd personally close the shares with the side of the assignment, then close the other spread (as described above)
Question…what is this strategy where you Sell a Call and a Put at the same strike, preferably ATM. Then you Buy an OTM Call to protect you on the Call side. I understand that you sold a Put and if the price drops below that Put strike, you will be assigned shares. Is this a modification of a Cash Secured Put? Is it a good strategy if I wouldn’t mind owning the shares? Thank you
That would be a short straddle with a long call for upside protection. You'd have big loss potential on the downside and limited/no loss/profit potential on the upside depending on your strikes chosen and total entry credit.
Can you explain more about profits what difference between both please ?
Thanks so much for the content !!
Will I learn from paper trading?
Question for anyone: if I buy a call option with a strike price of 100. Then it goes to 101 before expiration for only just a moment. Then immediately back down to 98. Can I exercise the call while the price is still at 98, or do I need to wait until it goes back above 100?
You would not want to exercise a 100 call when the stock is at $98 because you would be choosing to buy shares at $100 through your call when you could just buy shares in the open market at $98. You would destroy all of your option's value by exercising it and then also have a loss on the shares since you bought at $100 and the stock is at $98.
This is well done - but IMO you should be more specific about the danger associated with decay. Options lose value constantly over time, eventually becoming worth nothing when they expire. This means, you can be correct about the price moves, but still lose money on options as the time-decay eats away at any positive movement caused by the price change in the stock. Stocks require you to be correct only about the change in a company's valuation. Options, on the other hand, require you to be correct about the valuation, MORE correct than most other people AND all those things have to happen QUICKLY, as Options expire eventually. Much much greater difficulty.
Can you explain decay im a novice
Well explained, thanks
You're welcome!
In the NVDIA call option example isn't the profit $195-$146(share price at the time of purchase) rather than the $195-$150(strike price)???
No because the 150 call has the ability to buy 100 shares at $150/share.
If the stock goes to $195, the call can be used to buy at $150 and then sell at the market price of $195, making a $45 profit per share. x100 shares = +$4,500.
The option price is $46 which includes that profit, so the trader can just sell the call without needing to exercise it.
Thank you. I needed this
Glad it was helpful!
Dope video man, love it. Hope you're doing well dude!
Very well explained. Thank you!
Thank you! If you want to learn more please check out my new 2 hour video on options trading for beginner on my channel :D
Good vid! So much to learn 😅
Could you please make an video on SVIX ETF ? i think nobody has done yet.
amazing video, thank you!
Thank you for the comment! I'm glad you liked it
Best explanation I’ve got
I’ve been in crypto so I only know longs and shorts. Can you explain to me a put? I want to buy AMC NOW! is it the same as a long?
Who buys your option when you want to sell it before the expiration period? And is it sold immediately or you have to actually wait for a person to buy it.
Another trader or market maker will buy it from you. You will be able to close the option no problem if you are trading liquid options (high trading activity) which basically means you're trading popular stocks/ETFs.
I just uploaded an updated version of this video here if you're interested in checking it out: ruclips.net/video/0GSB5YZx9ZE/видео.html
One of the best content
Thank you! I appreciate the support
I realize this isn't necessarily the point of the video, which is more about the value of option contracts themselves, but in theory shouldn't the price a trader pays for a call be factored into the calculation of profits if it is exercised?
Yes for sure. The intrinsic value explanation was more so talking about the gain that could be made from exercising and closing the resulting stock position, but the 'profit' is the gain from that transaction minus the amount paid for the option initially.
Brilliant explanation..thank you
Great video thanks
Glad you enjoyed it!
Thank you.
You're welcome!
Do you offer private coaching?
I do not
@@projectfinance Would you be open to it? I'm looking for a mentor and all I want to do is learn to trade SPY/QQQ and AMZN/GOOG, that's it. 🤞
Any content on options on futures?
Hi in your video always great to learn. Keep up. Thanks
Thanks for watching!
How you build these animations? Yourself?
A talented editor :D
I used to do them all myself in older videos (not as good!)
Bro this is the only video that has really helped me get the basics understood . Thank you
Wow. What a great explanation of options. One of the best I’ve seen. Thank you
Thank you for the comment! I'm glad it helped!
Thank you
Which is better options or futures ?
Depends on how much capital you have available, in my opinion.
do you offer any courses on options\?
Just the data-driven options strategies course: geni.us/options-course
It is not designed as a beginner's course so I would recommend having the basics down before considering it.
Let me know if you have any questions!
Anybody let me which platform is good for crypto & stock options trading
How is a call any different than just buying 100 shares low and selling them higher?
Because profit doesn't start at buy price rather the strike price
nice video multumim
This confusing af
Yeah I still don't get it 🤭
Where’s my free pdf?
You can get the Options Trading for Beginners PDF here: www.dropbox.com/scl/fi/7vmk3e5yfq5ofdthpmb6u/Options-Trading-for-Beginners-2024-July-21-2024.pdf?rlkey=g0ma8vzaep5dtv4xx0m1a4s3b&st=apsf07ux&dl=0
And the Options Strategy Library here: www.dropbox.com/scl/fi/44rxeb0jzkxgmt78ehvr4/Options-Strategy-Library-FEB-18-2024.pdf?rlkey=ytws4fovuxqouazu32ro0lck8&dl=0
Gold
If you want to do option trading learn to understand candles.
What a excellent video, well said and visuals are perfect well done
What is the difference between Options and Futures 🤦🏼
What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
Oh look another RUclipsr that made me more confused than I was before I clicked on their video. Shocker.
:/ it is really hard to actually get it all in just 10 minutes. I have a ~3 hour in-depth class that thousands of people commented on saying how helpful it was. If interested, check it out here: ruclips.net/video/7PM4rNDr4oI/видео.html
just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
In the old days Chinese people wear white when there's death in the family.
What in the absolute waffler
Can you do a simpler video about it ?too confusing
what a terrible explanation
Good video
Man... you're offering us this high quality content for free, nothing but Respect fr!, you're the real G .
Thanks G glad you liked it 🙏🏼