Here is how options work in the stock market. Let me know if i should make a part 2 #options #stockmarket #investing #trader
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Here is how options work in the stock market. Let me know if i should make a part 2 #options #stockmarket #investing #trader
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@janniehayes7175
He's learning as he's posting. When he learns the next step, he'll put up another cut off video
@Melissv.e
Videos cut out too soon unsubscribed
@Sghappy.trader
Finally found a platform that makes sense for casual options traders like uSMARTsg. Provides 0 commision and Free Tesla stock.
@farrgone
Excellent job, but I believe that we can all agree that we need a full video.
@splitzfiftyfifty9475
First thing you need to know is the spread how about the spread you know in the spread anything higher than the spread then you make money if it doesn't you lose money
@nickgrace1997
Thank you that was simple
@sherifelrashidi1190
Tuesday before close at 2pm Fort Collins co time u feel Boeing low u pick up a call or 100 at 1 percent above current price key is not pay more than one percent u feel Boeing to hi u pick up a put or 100 and use strike price 1percent lower than current price…SPECULATION EQUALS PROFIT GOLD SO SMART U CAN BUY THE SAME SHIRRT AGAIN IN A CENTURY GOLD HOLDS VALUE VOLITILIT.e creates it!!! Sell tomorrow morning immediately is pro ride the stock until it expires on Friday I say no butt it your ass ETs not mine…
@sherifelrashidi1190
Ba Tuesday close to Wednesday morning best play wait a week if u need too
@sherifelrashidi1190
Jumbo.done say no way I say explain they say do way buttwholesdonotgetit!!
@sherifelrashidi1190
Jumbo dung MOPE I WROTE dumbo.donkeys sure are dumb! Edit bible which diete r u ones i eat your already gimme your Rickie mint oysters RAW!! I chew!!
@JustinP22
You just made it so simple thanks
@DanB3286
I’m confused why not buy at its lowest sell at its peak
@AMB_REELZ
More like 20 options lol
@djkidjoker
lol
@willabates88
Didn’t even finsh
@ariannachance6706
please do put option
@ariannachance6706
i can learn from you many oddly i do not understand you keep it simple and easy as a person lower income your free lessons are bless my income thank you for every free tip and all your knowledge most have your knowledge want money zero free help God Bless you
@ashbazookaG
your explanation is clear. luv it
@madnotez
You were doing pretty good then it abruptly ends
@DaddyDayTrade
Bro quick question 🙋🏾♂️
If a stock’s price fills a gap during after-hours trading, is that gap considered officially filled? For example, Meta closed at $551, and there were two gap levels at $738 and $717. After the market closed at 4 PM, the stock ran up past both gaps and reached $695 in the after-hours session. Would that count as a true gap fill, or does it only count if the move happens during regular trading hours?
@ActivatedAlways
For ya'll still confused: Don't listen when people say "it gives you the right to buy that option at that price at a future date. It's a completely unsimplified or inaccurate way to describe it. Let me explain so even beginners can get it:
A call option is: You are not buying the rights to own the shares, You are paying a price to own the profit of the shares per contract. So when you see "strike", that is the point in which you are betting the stock goes above. You then buy a number of contracts (that contain 100 shares per contract) at the strike price. So let's say the stock price is at $5. You get a strike price at 6 for 2 contracts (contains 200 shares) for every dollar the stock goes above the strike price, would be a dollar per share (since you are buying the profit you are betting on for 100 shares). If it went up to $8. It would be $3 per share x 200 shares of 2 contracts would be $600. profit. Now Ill explain the difference in strike price why there's different numbers lower and higher. If you are getting a strike price $5 lower than the current strike price for example. Lets say the stock price is $20 and you get a strike price of 15. If you get a contract for the lower strike price you have to pay more upfront to own the profit what profit you make, but the difference being it protects you more from losses percentage wise than a higher strike price. Because essentially, if the stock price drops below the strike price or remains at it to expiration, you would lose all your money no matter what. If the stock went from $20 to 19 in this scenario, having a $15 strike price, you wouldnt lose all your money but a smaller percentage since you paid more upfront, but if you got a strike price of 20 and the stock price went to 19, you would have lost 100 percent of the money. Then there's the bid pricing which is what you're bidding to pay per contract. If it says 1.5, that's $150, 1.25- $125(multiplies by hundred). Finally, intrinsic time value plays a role according to the expiration date you set. Later expiration dates cost more since there's more time to collect profit. How to measure intrinsic time value lost. 1) Picture a squared graph from the top left to the bottom right. Instead of a straight line, it would act as a half circular line from those two points with a half circular line closer to the top right not bottom left corner. the horizontal element representing time, the vertical measurement representing value. Like as if you're on top of a sphere the further you run away from the center (time decrease)the faster you fall down off the sphere (value). Closer you get to expiration date, the faster the contract loses its value.
So a quick re-configuring: The quantity section next to strike is the number of contracts you want. The bid section is what you're bidding to pay per contract. The strike section is what you're betting the stock goes above but if you choose a lower strike price, your profit will be the same just the percentage of what the profit is lowers since you have to pay more upfront but it leverages you with less risk if it drops below rather than a strike price right near the current stock price. (since if it drops below strike price your at 100% loss no matter what as i mentioned earlier). Following all this is as time gets closer to expiration, the value of per profit of shares starts to decrease slowly then rapidly if the stock ain't steadily moving higher
I tried to explain all the factors for anyone including beginners. If any questions you cant get answered, I'll try to get back in the comments.
@trungphan-j7s
Thank you for this valuable content!
@TheRealPaul_Morphy
It’s really simple, but it’s not correct
@keking2178
It's not the price u buying it's beta
@KRFii
What a sweet explanation please post the full length video 😭