Options Trading Basics EXPLAINED (For Beginners)

Share it with your friends Like

Thanks! Share it with your friends!

Close

Learning the basics of options trading can be very confusing at first, especially as a beginner.

The video starts by discussing the benefit of trading options, which is the ability to leverage returns and potentially have lower loss potential compared to simply trading stocks.

Then, we’ll explain basic options trading concepts by walking through each concept and explaining them intuitively.

We’ll start by discussing the two options types:

1) Call Options
2) Put Options

With each option type, we’ll go through some hypothetical trade examples so you can understand scenarios when buying and selling calls and puts can be profitable, and when the trades will lose money.

More specifically, why the option prices make complete sense based on where the stock price is relative to the option’s strike price at expiration.

If you’d like specific guides on each of the options strategies discussed in this video, check out the videos below:

Long Call Strategy: https://youtu.be/vvAND3hDRwc
Short Call Strategy: https://youtu.be/InMZhTY5n2s
Long Put Strategy: https://youtu.be/k9uiYBQJfOs
Short Put Strategy: https://youtu.be/RO0ezQEWXdM

Options Trading for Beginners [PLAYLIST]: https://bit.ly/2qZ3mXs

=============

Ultra-Competitive Commissions. Close Trades for Free.* $10 Commission-Cap Per Option Leg.**
https://www.projectoption.com/tastyworks/

Our Options Trading Courses:
https://www.projectoption.com/options-trading-courses/

Comments

projectoption says:

Ultra-Competitive Commissions. Close Trades for Free.* $10 Commission-Cap Per Option Leg.**
https://www.projectoption.com/tastyworks/

minds4game says:

This was super helpful… Just gotta watch it a few more times haha

Glennes Bacha Nodado says:

Many thanks, I've been looking for "what is options" for a while now, and I think this has helped. Have you ever come across – Jenameron Penny Smackdown – (search on google ) ? Ive heard some great things about it and my buddy got cool success with it.

Comments are disabled for this post.