"Owning call options is not just like having leveraged shares; owning shares for cheaper, there's characteristics to options that are unique to options, and this is one of them called time decay."
"This is by far the number one distinguisher between those people who are successful in this business and those who aren't: understanding how options are priced, understanding the Greeks, how implied volatility and time decay and all of that stuff impacts an option's price."
"Vega is my personal favorite. I believe that this is where we make all our money as an options trader."
"Understanding the risk and reward of different vertical spread strategies can significantly enhance your options trading expertise."
"Thinking about options as insurance is the best way to understand the way they are priced."
"We never buy options as a way to guess the direction of the underlying stock; we actually trade them in a way to take advantage of this time decay."
"It's better to pay more for in-the-money option contracts because it's going to give you a higher probability of actually profiting."
"So today, we will investigate my favorite options trading strategy that I've used with great success in recent history."
"Understanding how to trade options can help you both lower your risk and make more money in your investments."
"Options trading can be a powerful tool if you use them right; it can help you reduce your risk and increase your returns."
"Options trading can be very, very lucrative and you can absolutely grow a small account with options trading."
"It is freaking stressful and it is very risky."
"The people who are net option sellers have a distinct long-term advantage over option buyers."
"Options profits aren't linear. The higher the stock goes, the faster your potential profits can accumulate."
"But the move has to be big enough and quick enough to make up for the effects of time decay, which erodes the contract's value."
"This is the most important concept that you'll need to learn if you want to be successful trading options."
"In this week's video, I'm going to go even deeper into understanding risk and the business of options trading."
"Hopefully this video serves as a great guideline for options pricing, and just the idea that we need to be more cognizant of how much money we're taking in, relative to the probability of actually losing on the trade."
"Understanding options chains and how to read them is crucial for options trading success."
"Selling naked options... you have theoretically unlimited loss potential."
"Options can be a beautiful tool to help you earn more consistent profits."
"Thinkorswim is geared for people who approach options trading as a business versus as some sort of gambling activity."
"Trading weekly options is a high-risk high-reward activity."
"Toyota's Woven City: an attempt to automate caregiving so that families have extra time for what really matters."
"Think about options premium as paying for extra security. The more premium you pay, the more insurance you have."
"Covered calls are so beautiful because the more market trades sideways the more money you make with them. It's beautiful."
"Covered calls are a solid way to collect extra money."
"You cannot be married to a stock... You cannot be afraid of assignment... You will be assigned."
"When we are writing options, guys, your goal is to write that option, collect that premium, and get out as fast as possible."
"Live and learn, get assigned, go back, sell a put against it, collect some more premiums, do the wheel, and you'll be fine."
"Diamond handing options is like burning hundred dollar bills."
"Finance school is not going to teach you how to buy an option."
"Options are about probabilities and risk versus reward."
"A covered call strategy is where you own an underlying investment."
"Covered calls will make you so so so much more money."
"Five times the return using options versus buying the actual stock."
"Selling a covered call, there's not really much risk to it... your risk is minimizing your profits."
"I still trade options on the Robinhood app because, to be honest, it's slick and I really like it."
"Remember, one of the biggest issues I see is people being too aggressive with their time frame in options trading."
"Expiration dates uh calls on the left puts on the right Always by the ask on these and these are all your premiums."
"You want IV to be low when you're entertaining buying call options."
"Covered calls are probably one of the best things you could do."
"It's a safer way to engage in the options market."
"Does it make sense to let options expire, or should you take profits early?"
"When to take profits: a formula for options traders."
"My rule: buying back options at 90% of maximum profits."
"Options are incredibly risky. Especially the way that I am trading them. I'm expecting to lose nine times out of ten."
"In this market you want to just be a shareholder or do you want to be a shareholder um and an option writer at the same time."
"Options give you protection and they give you leverage."
"We know how to hedge getting into the market, we know how to sell premium on options so that we can get paid to wait."
"There's a responsible and an irresponsible way to play options."
"Through options you can literally generate any type of trade you like. A bullish trade, a bearish trade, a neutral trade. You can barbecue it, boil it, broil it, bake it, sauté it."
"The skew is still about 60% calls versus 40% puts."
"Options involve risk and are not suitable for everyone, but with options, you have different options to have strategies to make money even when the stock price is going down."
"When you short, one of the best ways to do so is generally going to be options."
"Short strangles are high-probability neutral trades with options far out of the money."
"Congratulations, you have learned so much about options trading."
"When you are trading options, you want to stick to stocks that are very active."
"Just because an option has an expiration, it does not mean you have to hold until expiration; you can close the trade whenever you want."
"I've been doing this for seven years now, and my goal with this video was to package up everything that I would put into a beginner course and give it to you for free."
"I probably did 300 hours of reading and research before I even made my first options trade."
"Congratulations to you if you made it this far."
"Observing is a very powerful learning tool in the options trading universe."
"I really hope that you got a lot of value from this video."
"If you understand implied volatility, you can make money with options."
"This, my friends, is the secret to consistent gains with options."
"Buying calls has limited loss potential and unlimited upside potential."
"Call options go up when the stock price goes up, and put options fall when the stock price goes up."
"Trading liquid options will make it far easier to enter and exit positions without losing a lot of money from slippage."
"Buying LEAPS takes away some of that time-sensitive risk."
"The options income strategy that allows you to make consistent money whether the market goes up or down or sideways."
"...the 10 Delta put credit spread is a terrific beginner strategy that can win in a number of different Market environments."
"In my 16 years of trading options, I think this is the most underutilized strategy that everyone should be utilizing, meaning anyone who's trading stocks or ETFs should be utilizing, but many of you do not."
"Even experienced options traders will learn something about the foundations and basics of options trading that encourage and enhance their ability to understand more advanced strategies."
"The reality is that if you buy call options all the time, you're going to see more losers than winners."
"You have to ask yourself what's the break-even price and do I think the stock is going to exceed that break-even price."
"It's always, always, always about the Greeks."
"If you have a stock that has a delta of 0.8, then a lot of people would say you have an 80% chance of this option expiring in the money."
"Options with a high theta are good for credit spreads."
"Options price themselves off of fear and opportunity. You have to appreciate an option's sensitivity to volatility if you're going to be strategic about it."
"The delta is on your strike drop down, so when you click on the strike drop down you have your strike price, you have your premium, and then you have your delta."
"Selling the 50 delta and buying back the 25 delta maximizes the income that you're receiving at the same time minimizes the risk that you're taking."
"The primary call option influences are changes in the stock price volatility expectations and the passage of time."
"I'm purchasing a call option with a strike price that is very close to the current share price."
"How creative you can get with options to really create the payoffs and the strategies around the different types of outlooks that you may have on an underlying stock."
"These time spreads are one of the most creative ways to utilize options to offset your bullish or bearish view."
"Covered calls are literally one of the best strategies."
"So when you're selling a straddle here, what you're doing with a butterfly, and a condor with a butterfly, what you're doing here is that you're basically saying that I don't want to take on that unlimited risk."
"The best way to get wealthy with option trading is to do consistent things with lower risk."
"Buying a call allows greater leverage than buying the underlying stock."
"American style options trade on the CBOE... American style options can be exercised anytime until expiration."
"Options are always going to be with us, and so it's something that we have to understand."
"The VIX helps determine fair pricing of options based on the volatility of the underlying stock, sometimes called the 'fear index.'"
"If the index closes between the prices of all the calls and all the put positions, the entire iron Condor expires worthless."
"As long as the stock is above your short strike, then you do nothing."
"The basic idea behind a diagonal spread is you buy an option that's a little bit in the money in the back month, so in this case, that would be March, and then you sell an option that's a little bit out of the money in the front month, so in this case, that would be February."
"Most options trades do not go in the way that we want them to go. Understand all the possible outcomes before entering the trade."
"Anyone who says that options trading is too complex has never heard of the three strategies we just shared with you today."
"Iron condors are one of the few strategies that allow you to bet on a stock going in any sort of direction. It can go up, it can go down, it can even trade sideways."
"So, if you're afraid of this happening, you need to close your options before they expire to avoid this altogether because if the options don't expire and you sell them or close them before they expire, then you don't run this risk."
"It's like being long 50 shares, right? But if I short five of these calls, it's like getting short deltas."
"So today is really talking about creativity. Time spreads, I think, are a very creative way to utilize options to give you unique payoff graphs that you can't really create any other way."
"...when you trade a time spread, what we're doing is we're trying to do the same thing that we generally do with the debit spread, which is offset the cost of that long call with a short call..."
"...so by buying an option, you're actually collecting premium, so this is really what we're doing when you're trading a time spread."
"Don't just apply these types of blanket rules to all option strategies."
"You can only lose the amount that you pay for the put option, making it much safer than shorting 100 shares of stock."
"Just like the cash secured put, you have two possible outcomes when you sell that cover call: the stock can either be below the strike price or it can be above the strike price."
"The logic behind employing the iron condor option strategy is to capitalize on theta decay while expressing a neutral outlook on the underlying stock."
"Options are an amazing tool and can be used in so many different ways whether it be to generate income, hedge risk, or even bet on a direction. You can really be as conservative or as insanely risky as you want and everything in between."
"As long as the share price of the stock stays below what you sold a call at, then you're going to be able to collect the premium."
"Almost nobody I personally know in my 10 years of experience is really crushing it on a long-term basis as an option buyer."
"One of the benefits of buying an in the money option and selling an out of the money option against it is that you can structure the trade in a way that you don't need the stock price to move for your strategy to break-even."
"Iron Condors are designed to benefit from time decay as time passes and options contracts move closer to their expiration dates."
"The five things that you need to know about options: options do have a strike price, options do have an expiration, options are either call options or put options, you can actually buy options or you can sell it, and there's the important concept of premium or also theta decay."
"Sell calls when you expect the stock to go sideways or drop."
"Options trading strategies: buy calls when you expect the stock to go up."
"Buying options has a debit, selling options has a credit."
"Theta decay represents how much an option's time value decreases over time."
"Options trading strategies depend on your outlook for the underlying stock."
"When selling options, you keep the premium as long as the stock stays within certain price levels."
"If you understand them and how to overcome those hurdles and turn them into opportunities, options trading can be incredibly rewarding."
"Most people lose money trading options because they don't really understand them."
"Trading options has its dangers as we just shared with you, but if you understand them and how to overcome those hurdles and turn them into opportunities, options trading can be incredibly rewarding as well."
"It's just been uncanny how good these levels have been, Brent is just an expert here in options."
"Weekly options is one of the most popular topics among options traders."
"When you sell your first covered call or write options, your first covered call is a moment."
"So, even if you're an options trader in general you learn something from that perspective."
"And I hope that also for those of you that are not currently trading options on futures you know when you're thinking about selling premium on certain products that you might want to consider doing it on options on futures versus options on ETFs."
"Stock is... you're getting a delta one option with no expiration so I kind of like that."
"If you're going long options when in doubt give yourself the gift of time."
"Option prices Drive implied volatility not the other way around."
"The secret to making money with options is to be on the winning side based off of probability."
"Understanding implied volatility is key to successful options trading."
"There are many [strategies for options trading]."
"Selling puts is something that I do instead of buying stocks outright. My intention is to either collect the juicy premium or, worse comes to worst, get put the shares of stock at that strike price that I pick."
"Selling puts is basically like an insurance policy. Someone would buy puts to protect their portfolio. Well, when you sell puts, you're selling insurance, since that person is buying the insurance on their stocks and you're the one selling it to them."
"You're essentially ensuring that if their stocks crash or their stocks fall, well, you're ready to purchase for a lower price."
"Number one, you should sell puts on a stock that you wish to own for a cheaper price."
"When would you actually want to be selling puts? Well, pretty much, it's always a good time to sell puts as long as the stock is a fairly good stock."
"So, taking a look at Tesla, had you done a strategy for put selling, you would have literally almost never gotten put since the stock is in a massive uptrend for the past six months."
"Bank of America is another phenomenal stock to sell put on because it's so low volatility. It doesn't really go up and down."
"You can roll your call up, pulling money off the table and lowering your risk level."
"Selling puts and running the wheel strategy are the two best strategies that I have."
"Don't be greedy that's how you win in the options game."
"You turn $100 into $500 that's how options works."
"Managing risk is number one, especially with short-term options."
"You know, one of the great things about buying options is if you're wrong, you're just going to lose your premium."
"The writer of a covered call has profit limited and loss unlimited."
"If you're going to trade options for me, I'd make it right a thousand times. Options are wasting assets."
"So interesting. So if you buy a call or you sell a call, breakeven is strike plus premium. Good. So remember that, call up, put down. That's what people say a lot."
"Index options provide exposure to a variety of securities instead of focusing solely on the stocks of a single company."
"Short-term options have a brief expiry period, ranging from one week to a couple of months, making them ideal for quick results."
"By investing in short-term options you can sell them at any point before their expiry date and earn a profit."
"Long-term options are an incredible opportunity for first-time investors, especially those who are interested in studying the market while reducing their risk exposure."
"Options offer incredible levels of profitability, unlike any other trading instruments."
"Options trading is incredibly interesting and exciting."
"Step into the world of options trading and become a successful trader."
"But if we wanted to take even a closer look, we could actually scroll down on Baidu. We can see today's option statistics. We can see a whole lot more calls were traded today than puts. It's a lot more volume on the call side than the put side."
"The optimal expiration date for a call credit spread is 45 days to expiration."
"So just like any other put option that you purchase, cutting losses at 50 is a good practice."
"That's effectively what a caller strategy is."
"Maybe you buy a put option and it doesn't work out, and you're in it for three or four days, and what you effectively lose is time value for three to four days."
"The reason you do a call debit spread is you're buying this call. That's going to be losing value every day as the premium erodes."
"Understand option pricing if you want to buy or sell options."
"If you sell a cash secured put and you're bullish on the stock you've done your research and the stock you know uh goes up you just got paid and you keep that money that's very low risk."
"If you buy an option that has to have a massive movement that's high risk and your chance of success is very small."
"If you like making money and you want to have an advantage over other option traders, then learning what the Greeks are and what they do can definitely improve your option trading skills."
"Short puts is a strategy that you should be deploying far more often than perhaps you currently may be."
"...a certain option strategy that allows a trader to acquire a call option without any outlay of cash and actually very little risk but the potential for a really large win if the market really responds strongly to an earnings report."
"Long options benefit from increased implied volatility."
"Short options profit from volatility decrease."
"At the money options hold on to a lot of extrinsic value until the final weeks before expiration."
"Understanding what's going on behind the scenes is crucial when trading options."
"The wheel strategy has got to be the best way for beginners to get their feet wet inside options and inside options trading strategies."
"If you can get the hang of it and learn to be versatile in puts, calls, buying them, selling them, synthetic longs, calendar spreads, ratio spreads, condors, all that type of stuff, it's a beautiful way to generate perpetual income."
"...this tutorial is for any of you who are beginners and you are just stepping into the options world and you don't know where to start how to trade options."
"...why I stopped buying stock a long time ago and replaced it with this incredible options trading strategy called buying deep in the money call options..."
"...capture fifty four thousand dollars by selling covered calls now this is income that this person didn't know it would exist or didn't know that they could actually do this."
"...immediate cash into your account cash that you you didn't have yesterday and cash that you may never know that could even exist."
"...selling options can bring in will always bring in immediate cash into your account."
"...he was paid sixty thousand dollars into his account free and clear sixty thousand dollars that he didn't have yesterday."
"The fun thing about being an options trader is that I can dictate what types of trades I put on at different times."
"If you're intimidated trading options this is meant to be kind of pretty basic kind of get in there and start understanding simple selling puts and calls and buying puts and calls so kind of go over all those and walk through how you might do this on fidelity."
"Anthony Saliba, an options trader of 40 years."
"I kind of think of options as a technology, not as a product."
"Options make money in so many different ways which is what makes them such a great tool."
"Unlike stock, people can trade options not only to bet on a direction but also to profit from time passing or volatility changing."
"There's nothing wrong with selling iron condors around volatility and premium. Just understand that... you know, the risk that you're taking. It's a perfectly valid strategy."
"Call options pay off if an index closes above the strike price of the option on the day that the option expires."
"Professional options traders understand this well and know how to make money using options in lots of different circumstances."
"The dividend keeps on being paid, and I can compound that cash flow with covered calls."
"Call options are risky, if you're wrong you can lose that premium."
"Options are a bet on volatility, how much and how fast things move, not the direction."
"Most options are exited not through expiring worthless."
"When we're selling premium, we want the prices to decrease so we can buy back that spread for a lower price to reap those profits."
"If you've ever wondered what a backspread is, or how to use it, this presentation will answer those questions."
"If you're sharply bearish, a put back spread may be where it's at."
"The Yield Max Tesla Option Income Strategy ETF is an actively managed fund that seeks to generate monthly income by selling call options on Tesla."
"Moomoo is an advanced brokerage firm that comes with commission-free trading for options, ETFs, and stocks."