OPTIONS TRADING FOR BEGINNERS 📈 How To Trade Stock Options

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Options trading for beginners is today’s video! Justin discusses how to trade stock options, the basics of call and put options and all of the basics a beginner needs to get started with trading stock options. Options trading can be difficult for beginners to understand. Watch this options trading for beginners video to learn how to trade stock options like the professionals!

Special thanks to Justin from Road To The 2 Comma Club for making this options trading video for beginners. He is documenting his journey of building up a seven figure trading account. Make sure you subscribe to him and thank him for making this video!

Justin’s Channel: https://www.youtube.com/channel/UCrnF9GyCjvh0i47eD_XPRWg

Justin’s Instagram:
https://www.instagram.com/jrskatr/

Comments

Ryan Scribner says:

Special thanks to Justin from Road To The 2 Comma Club for making this options trading video for beginners. He is documenting his journey of building up a seven figure trading account. Make sure you subscribe to him and thank him for making this video!

Justin's Channel: https://www.youtube.com/channel/UCrnF9GyCjvh0i47eD_XPRWg

Jackie Comitino says:

Hey Ryan I'm setting up a Tradeking account and was wondering if you could make a video or point me in the right direction as far as the new account process. Not sure if I should pick balanced, growth & income, growth, max growth…etc. thanks!

linop412 says:

Thanks for the vid. You made everything really easy to understand. Been trading for over ten years now, but always like you did when you started buy simply buying, holding and selling. Now all I see and hear about is options. It was time to finally learn and your video helped a lot, so thanks again. I do have one quick question though… how do you figure out what your option will be worth if it goes over the strike? So say I buy 1 call option contract of apple for Oct, 08, 2017 with a strike price of $150.00. The ask is $5, so I pay $500.75 total. I understand that I can lose the total amount, but how do I know how much I will make if it goes above the strike price?

Viper says:

I traded options for a while but there is way too much babysitting and it was getting on my nerves having to keep track of my portfolio constantly. Portfolio volatility is ridiculous, and dont even get me started on theta decay.

InThEgYm24/7 says:

Bro, thanks for the explanation of stock options. You made it very easy to understand

Christian James says:

could you do a top 3 or 5 energy companies to invest in video

Alvin Jones says:

Finally a video that explains Options in English.  Thanks. Big thumbs up.

Kappa123 says:

Lol that Amazon Call. Already way in the money on that one. In that case, would you sell th contract or wait for expiration and buy the shares?

Andreas Jure Markota says:

Hello Ryan!
I want to start with investing in a fund. Its called MS INVF US Advantage A. It says that after a period of 3 years it gives you a +93,8 return on your investment. I am trying to find 2 or even 3 funds i can invest around 1,000 dollars in each. And then monthly or every 3rd month i will put in 2-300$ in each funds. So I wont "only" invest 1,000 dollards and wait 3 years. I have no hurry and im in it for the long run. Do you think this type of investment is a good or bad choice? And have you ever heard of the fund "MS INVF US Advantage A"? I think almost 100% return in 3 years seem alot, but judging from the growth rate it seems like you can make a lot of money with this fund. I also found a lot of others that has a growth of 30-70% over 3 years. Would that be a better or more secure fund? Note: I only invest money i have saved up and can afford to lose, but of course i am hoping to make money =) Thank you!

Mick'Arooney Gonzales says:

Great video! I did not know what options were until now and will try them out.

Icetech2 says:

Hey man, What do you think about SNAP? Do you think it is worth investing in? I got in at 21 but it went down a good amount.

Bryan Geonzon says:

You have no idea how many people this video will help.

Gregory Hunter says:

Not related, is it worth buying 1 share of Amazon

Joel Zook says:

thanks for the good video very helpful

Robert Caldwell says:

I'm stunned….like I just watched a 50 wagon train barrel into 10 school buses full of children, derail and hit a chemical plant that released toxic gas and killed the entire town type of stunned. …..like….where to begin….

1. Buying options is a terrible investment in the long run, it is usually used in concert with other trades in order to protect positions or make synthetic ones. For example, buying stock and buying a put protects the stock from falling, but just buying a Put will surely see a downturn in your account eventually.

2. Why is buying bad? Well, simply put, stocks usually have market makers that position price spread. When these market makers have increased volume throughput within a small time scale during the day, they normally will reduce their individual trade position per strike, which leads to the stock moving at a faster pace…..which also increases the "ATR" (average true range), and subsequently, the volatility of the stock itself. When volatility goes up, option prices go up based on an elliptical curve, and this is reflected in the extrinsic price of the option. This means that if a stock is moving around too much, then options will be overpriced, and since most market makers base their intrinsic on black-scholes formula, options are never underpriced.

There's usually a strategy where you buy options when IV% is less than 7%, but it hardly happens, and the profits are very slim….compared to waiting for a stock to hit over 20% IV and sell the options instead.

3. NEVER Buy/Sell at market (MKT)…..that's terrible practice. Naturally stock spread is very small, but option prices have a big enough gap that you can actually squeeze quite a bit of money out of a trade just by setting a limit instead. You also never know how many "lots" have been set at the price you are looking at (in the example of the AAPL split option order, some were bought at price X and the rest at price Y)……this means that you could have a guy selling at much higher than you expected behind the "wall" price, if you smash through that wall, you'll end up paying that guy's price for the rest. This is usually the same pitfalls as stop orders being run over by quite a distance.

If you need any help with options, managing risk, taking profits, etc., just ask…..I've always wanted to a youtube howto, but I have stage fright.

Road to the 2 Comma Club says:

Thanks so much again for allowing me to explain options on your channel! Quick note for the viewers, I forgot to talk about "out of the money" so I had to put it in when editing so it shows up real quick but if you pause the video you can read it and hopefully it should make sense. I'm also a little behind on my vlog but will be uploading a ton of videos this week/weekend so you'll have lots of new content to watch 🙂 Thanks again super grateful for you guys! Hope you like the video!

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