What's Our "Edge" Trading Options? - Options Strategies - Options Trading For Beginners

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  • Опубликовано: 4 авг 2024
  • Every successful business has some sort of "edge" that gives them a long-term advantage over someone else or in the marketplace. As traders, our edge comes by way of implied volatility always exaggerating the expected move of a stock's price, thus meaning that long-term all options are theoretically overpriced and expensive.
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Комментарии • 12

  • @tradingpsychology2024
    @tradingpsychology2024 5 лет назад +66

    This is absolutely the best presentation I have ever seen for options writing and understanding the process. Well done Kirk!
    Superb presentation. I’m an option seller since many years and it’s so good to refresh my basic concepts with videos like yours!

  • @johnspalding7941
    @johnspalding7941 8 лет назад +95

    Outstanding video explaining the importance of trading small so your edge can yield big results in the long term. Use of analogies and visual aids along with clear explanations makes this a great presentation.

  • @TC-wc1uc
    @TC-wc1uc 7 лет назад +15

    Just beginning to learn this. I actually understood. Thank you.

  • @TheBearsjunkie
    @TheBearsjunkie 5 лет назад +5

    Great video. Thank you for sharing your knowledge and wisdom.

  • @jamesedgar7221
    @jamesedgar7221 7 лет назад +2

    great stuff great teacher

  • @alexslater5263
    @alexslater5263 7 лет назад +6

    You say in your videos that you mostly teach "selling options'. Doesnt this take alot of margin? For people starting with 5 or 10k, this might be a problem. I have TOS and I dont really understand how much margin I need to sell options

    • @OptionAlpha
      @OptionAlpha  7 лет назад +24

      Nope - you can use credit spreads and make trades that only require in some cases $60 of margin and are defined risk. Therefore, you can sell options even if you have $3k in your account or less, of course understanding that your not going to quit your day job with this amount of capital.

    • @alexslater5263
      @alexslater5263 7 лет назад

      I see. What would be a healthy amount of capital, assuming you know what your doing. to "quit your day job" and do this full time

    • @OptionAlpha
      @OptionAlpha  7 лет назад +10

      Depends on your income level needed to live - just reverse divide roughly 20% by your required income per year and you'll get a rough estimate.

  • @agamgoyal4130
    @agamgoyal4130 7 лет назад +1

    Sir great video but I don't understand few things. Like in an insurance there have to be huge no. of buyers for insurance company to make money. Same way here we are the insurers. But we will be selling a single contract(may be 10) in a month that to at a same price. What if price of stock shoot up higher than that value. We will loose in all of them. How is that sinerio taken care of.
    As you said that if IV is high we should sell contract . But in this scenario changes of us loose will be more as price movement will be more.
    Similarly in case of Low IV as price movement is very low , chances of us loosing oney will be high as there are more chances that price will not cross the strike price

    • @OptionAlpha
      @OptionAlpha  7 лет назад +12

      That's where position size matters which is why we never have a position over 5% allocation