Trading Options What is the Difference Between Selling a Call & Buying a Put
Вставка
- Опубліковано 16 вер 2019
- In this video, you'll find out what is the difference between selling a call and buying a put. Rights and obligations are different, and that is precisely what we will focus on.
I'll explain to you in detail the entire process of buying a put and selling a call a graph. Also, we're going to go through some examples in a trading panel.
#buyingput #sellingcall #tradingpanel #tradingobligations #tradingstocks #stockmarket
Posted at: tradersfly.com/blog/sell-call...
🗨️ Join Our Facebook Group
FB Group: hi.clickyes.me/fb
👇 EXCLUSIVE PREMIUM TRAINING & WORKSHEETS!
🍒 New To Options? Start Here: hi.clickyes.me/start
🎏 Transform Your Trading Strategy Into a Profitable One: hi.clickyes.me/flow-strategy
🏦 How to Operate a Multi-Million Dollar Trading Business: hi.clickyes.me/flow-trading-b...
💰 Make a Passive Income Trading Options: hi.clickyes.me/passive-income...
🚩 Build a Portfolio Portfolio with Options: hi.clickyes.me/profitable-por...
🧠 Improve Your Mental Game of Trading: hi.clickyes.me/flow-inner-game
⭕ FASTEST WAY TO LEARN OPTIONS TRADING:
Options Black Belt Coaching Program: hi.clickyes.me/programyt
One-on-One Coaching: hi.clickyes.me/coachme
🌐 WEBSITES
Options Coaching Programs: optionsblackbelt.com
Free Videos: tradersfly.com
Technical Analysis: criticalcharts.com/
Course List: rise2learn.com/
📑 ABOUT THE CHANNEL
Hey, I’m Sasha, and I help people learn to trade options, create a consistent monthly income, and build your retirement account even if they have never traded before, are terrible at picking stocks, or have failed for many years! My goal is to help you learn and navigate the markets to profit consistently.
We have various training materials that you can get for free on our website. We also run group coaching and classes; you can work with me directly. Schedule a Free 20 min call at → hi.clickyes.me/strategycall
🛑 DISCLAIMER
All of the stocks mentioned in this video and any other videos we have are opinions and not investment, financial, or legal advice. These videos are for general education, information, and entertainment. Do your due diligence and consult with a registered financial advisor before taking any position since everyone has a different risk tolerance.
So if I want to limit my losses while trading options i should focus on buying calls if i think the stock will go up or buying puts if i think it'll go down? Cause that way my losses are caped and my earnings are potentially endless? Did i get that right?
Your handwriting is too good for a dude.
Outstanding,...as usual. Merry Christmas for 2020
Merry Christmas. And a happy new year. Wish you another great year ahead
Спасибо, супер информативно )
Can you tell me if I have 100 shares and I sell 2 calls and buy one call and receive a credit what happens if the stock rises above the strike price of the 2 calls I sold?
If you have 100 shares you can only sell 1 call if you’re doing covered calls. If the price rises above your strike you start losing more and more money if you want to close out of your position early but you limit your losses if you just let it get assigned.
Go video, but still cant wrap my head around it. But im not giving up, keeping at it!
Check the getting started page on the website. At tradersfly.com
how you doing with this Puro? A good way I have learned is to teach the concept im trying to understand - Explain to me this concept bc I bet you will explain it in a way I will understand it as i am where you were when you posted this reply - very interested to hear back on this
Hi Sasha. Imagine I buy a put at $0.29 and now is worth $1 dollar. I know, that I can exercise the put option however can I just sell it? and if so, what if no-one wants to buy it? Could that happened ? I I would be stuck with a very profitable trade but I have zero buyers in the market place.
If you're trading liquid stocks and options you won't get stuck with it. But the short answer is yes you can get out of the contract itself for more money or value. You don't have to deal with the stock.
I dont know why people cant explain these puts and calls kind of easier. I watched many videos and really dont grasp it well as every video seems to explain it differently and in a more confusing way.
You may want to check the getting started page on our website at tradersfly.com. It is more broken down
Same, it's frustrating. I've been watching and reading for days and still don't get it. They say if you can't explain something easily, then he don't understand it themselves.
can I sell a dynamic iron condor for 45 DTE and still collect 50% credit
What does a dynamic iron condor mean to you? I'm not sure I've heard of a dynamic iron condor. What does it imply in terms of the trade
@@tradersflyofficial it means when delta selection are unequal .
Okay so you are saying an unbalanced or skewed iron condor... So yes any option trade you can get out early so yes you can get out of that one earlier if that's what you choose to do
Can you do a video of the difference at expiration
Yeah I didn't get it either, the graphs make it more confusing
It’s very simple - as the buyer of a put contract, you can just let it expire if the stock price goes up. You lose what you paid for the premium. There’s no obligation for you to sell 100 shares at a loss. You just let the contract expire.
As the seller of a call contract, you are the one who is obligated to sell, if the contract is exercised. If the stock price went up, and you don’t own the shares to cover the sale, you’ve got to buy them from the market. You’re F’d in the A at that point lol. They call that a “naked call” - if you’re selling calls on shares that you don’t own, and there’s no call contracts that you own that you can exercise to cover your losses in play.
What’s the difference between selling a covered call and buying a put
I don't get it? I but a put and how do I make money as it goes down? Why do I make money as is goes down? Do I have to pick a number and gamble on it? I just don't get it.......So I but a put.... What happens from there? If goes down down and I'm selling it for less how am I making money?
Tons of questions in this single comment. Too long to answer here but if you check the getting started page on our website it should help. Https://tradersfly.com
What happens if you sell a call and then you don’t buy before the contract expires?
That would depend on where the price lands. As long as it's under your call strike then you're fine. If it's above it then you'll be forced to the contract terms. In other words you owe the shares
Hi Sir, I have one query about future and option.....
1) What is the difference between Buying a future and selling a put, 2)what are the advantages and disadvantages of both...
3) under what circumstances,or conditions do we prefer to exercise these two things? I am confused....pl try to clarify this doubt..
This is a lot of questions to answer in a UA-cam comment. You may want to book a coaching session at tradersfly.com
The person selling the call contract is always going to be taking on more risk due to unlimited loss potential on their end. That’s why premiums are so high on volatile stocks. Look at AMC premiums right now.
Not always . It will depend on what you are trading. Spx for example puts have a bigger skew on the downside since they are more violent when they sell off
if you sell a call or put can you buy it back at anytime
Yes you can
Quick answer: Volatility
Thanks for watching and sharing
How is it that an up arrow is called a down arrow In your explanation? This is why I don't trade options because every time I watch one of these informational videos I go away more confused!
why will one want to sell a call if they don't own the stock compared to just buying a put
The way money is made is different and the risks... Buying a put you have theta or time working against you
nice explanation. i'm new and learning, but pls correct me if i'm wrong... when buying a put you said profit is "unlimited," however a stock's price can not go below $0 (yes, i know a stock going to zero is highly unlikely) but the max profit on buying a put is cut if the stock price goes to $0. correct?
Instead of options, imagine how much money you would have made if you just bought $SHOP and held
There are a lot of things in my life I could imagine but the reality is you never know which stocks will break out nicely as there are many that fail.
You do not have unlimited profit when you buy a put because the most a stock can go down to is 0.
Yeah yeah if you want to get super technical yes... But from a risk profile though it is not capped unlike the other strategies like a vertical or iron condors, the profits keep accelerating because of the delta.
That explained you side still was same for both, ridiculous
you made this more confusing than you needed to. i suggest re-doing this video.
I have other videos related to this topic. Updated multiple times and explained with different examples
Terrible explanation.
Thank you for your feedback
Agreed. I watched a couple of his videos and now I actively avoid his videos. As a beginner it's not helpful when in the very few minutes of the video he pulls out some weird counterintuitive graph.
I appreciate your effort, however your instructing leaves something to be desired. You need to think through what you are trying to say and then what is the best way to explain it. This video is not good.
Thanks for the tips!
This guy is an awful teacher. His content is great, but he really needs to learn how toteach
That’s the point. The video is meant as an advertisement for his website with paid coaching services