I have been researching Options trading for 3 days now. This has been more useful than 50 other video's i've seen, or a dozen articles. It was very clear and concise. I wrote everything down in my notes and took screenshots for future reference. There is a lot of Jargon in this, something i am not good at. Can you explain a Call bid, Call ask, Put bid, Put ask. And what that translates into. My trading software does a sell to open, etc. but i want more in depth knowledge of what it really means. I know this is basic. But its not clicking in my brain while im looking at this after work when im dead tired. I get it in the sense of purchasing a stock, but not when it involves options.
Thanks so much for your kind words! I should probably record a video about jargon! Okay, so a “bid” is what a buyer will pay, and the “ask” is what someone is willing to sell something for. So, if you’re buying something, you’ll need to consider the “ask”, and if you’re selling something, consider the “bid”. Doing so will give you an idea of what the trade price will be. TIP: you’ll notice there is always a difference between the bid and ask prices. If you pick a number in the middle of the bid & ask, your chances of getting the trade filled are high!
Hi Rick, thanks for the videos. When I purchase a Bear Call Spread, do you just let them expire or close them before expiration? I don't want to mess with assignments or anything.
@@RickOrford I am still on the trial mode of options samurai and I have saved the scans and meanwhile I am monitoring those scans while checking the strike prices. Most of those have expired OTM, right now I have a few of the scans saved and 2 tickers have their expiration in the next 2 days, for now the strikes have been breached but let’s see how it goes until expiration. I wanted to ask whether you hold the trades till expiration?
Wait why did he not stat with the amount of money needed to even make 2K a week trading options? Like I think to make $500 is about 35K so for 2K that is more than 100K!!! Well it all depends on lots of factors but why do none of them talk about the amount of cash needed up front?
Excellent point, but as you say, it’s an impossible question to answer. Trading spreads for example, could require something very small to start… $100, $200. While selling puts on the SPY would need $50k plus. Regardless, ill certainly keep it in mind for future videos!
@@RickOrford Well yes it is impossible to answer as a rule with so many factors involved. But no when traders do trades they always know how much they had to trade with to start but tend to no talk about that first thing. Notice the thumbnail talks about how much they made or make X amount yet they don't put in the title nor thumbnail the starting amount.... can't be an accident!!
@@RickOrford No your current one is fine: I was noticing how so many traders online don't disclose stuff. It would not be a problem but much better to make sure people understand.
Hi Rick, Can you help me out. Options. Crowdstrike. Assigned 100 shares @$157.5 on my 4th roll, price $187.83 To capture the full potential of the rise in price is this the correct plan going forward? Kind regards, Ray.
Hi Ray- not entirely clear. Were you forced to buy 100 shares at $157.50? If so, you should have an unrealized gain (if you haven’t sold). What are the current positions?
@@RickOrford I sold 1 put option @ $155, [ I do mainly weekly options/strategy: The wheel ] then it was put to me after-hours trading. The price increased quickly so I rolled out and up to $157.50 taking advantage of the price increase, the price now is $184.52 [19 Oct 23]. I have noticed the premium is getting less for rolling out a week, also, if I want to roll out and up, I need to roll out to January 19th 2024. I still have the shares, I don't want to let the shares go for the $157.50 strike. I'm a beginner, learning from your tutorials. Is this the correct strategy?
@@rayrodger I'm sorry, but, something doesn't add up. I understood you got 100 shares of Crowdstrike assigned to you at $157.50 - and they currently trade for $184.52. That means the shares are profitable. But then you say, "I still have the shares, I don't want to let the shares go for the $157.50 strike." The risk in selling puts is that you have to buy shares at the strike price, and they might be worth less than you paid. So you don't have to worry about selling them for $157.50! Rather, the risk is that you'd have to buy more at $157.50.
@@RickOrford I sold a $155 put option, and then I was assigned. I then sold a call option against the shares I own. Then I rolled out and up a call option @$157.50. Now I am rolling out the $157.50 option on a weekly basis for premium.
@@rayrodger Ah ha! You were assigned shares at $155. Then you sold a covered call at $157.50. Got it. Only problem is, that call is way in the money. Continuing to roll is one way that could work, but, you'll need to watch your P&L VERY carefully. Best of luck with this trade!
🔥 Join me on Discord: discord.gg/F2UmNw7W
I have been researching Options trading for 3 days now. This has been more useful than 50 other video's i've seen, or a dozen articles. It was very clear and concise. I wrote everything down in my notes and took screenshots for future reference.
There is a lot of Jargon in this, something i am not good at. Can you explain a Call bid, Call ask, Put bid, Put ask. And what that translates into. My trading software does a sell to open, etc. but i want more in depth knowledge of what it really means.
I know this is basic. But its not clicking in my brain while im looking at this after work when im dead tired. I get it in the sense of purchasing a stock, but not when it involves options.
Thanks so much for your kind words! I should probably record a video about jargon! Okay, so a “bid” is what a buyer will pay, and the “ask” is what someone is willing to sell something for. So, if you’re buying something, you’ll need to consider the “ask”, and if you’re selling something, consider the “bid”. Doing so will give you an idea of what the trade price will be.
TIP: you’ll notice there is always a difference between the bid and ask prices. If you pick a number in the middle of the bid & ask, your chances of getting the trade filled are high!
Good for beginner, Thanks!
Thanks!!
Hi Rick, thanks for the videos. When I purchase a Bear Call Spread, do you just let them expire or close them before expiration? I don't want to mess with assignments or anything.
That’s the plan! Let them expire and move on :)
Ps: for more, feel free to join my community on discord! Rickorford.com/discord
I really like your videos. Do you have any trading group programs or personal coaching?
Thanks kindly. I don’t yet- but stay tuned :)
Is option Samurai an accurate scanner and reliable to scan options?
The data is as good as it gets and it’s definitely my favorite!
@@RickOrford Ok, thanks for the reply I have started trading options and I am monitoring all the trades based upon the data from Samurai
How’s it going?
@@RickOrford I am still on the trial mode of options samurai and I have saved the scans and meanwhile I am monitoring those scans while checking the strike prices. Most of those have expired OTM, right now I have a few of the scans saved and 2 tickers have their expiration in the next 2 days, for now the strikes have been breached but let’s see how it goes until expiration.
I wanted to ask whether you hold the trades till expiration?
Very helpful Rick. The collar strategy idea was new fo me....I think a good one to use on Tesla nowadays along with a covered call.
Not a terrible idea!
Hi Rick, Can you make one episode for using indicator for option trade.😀
Good idea! What indicators would be most interesting to you?
Liked……
Wait why did he not stat with the amount of money needed to even make 2K a week trading options? Like I think to make $500 is about 35K so for 2K that is more than 100K!!! Well it all depends on lots of factors but why do none of them talk about the amount of cash needed up front?
Excellent point, but as you say, it’s an impossible question to answer. Trading spreads for example, could require something very small to start… $100, $200. While selling puts on the SPY would need $50k plus. Regardless, ill certainly keep it in mind for future videos!
@@RickOrford Well yes it is impossible to answer as a rule with so many factors involved. But no when traders do trades they always know how much they had to trade with to start but tend to no talk about that first thing. Notice the thumbnail talks about how much they made or make X amount yet they don't put in the title nor thumbnail the starting amount.... can't be an accident!!
Ok- so what would you suggest the feature image say?
@@RickOrford No your current one is fine: I was noticing how so many traders online don't disclose stuff. It would not be a problem but much better to make sure people understand.
@donaldlyons17 ahhh yes. That’s very true!!
two videos in a hoodie
Not today!
Hi Rick,
Can you help me out.
Options.
Crowdstrike.
Assigned 100 shares @$157.5 on my 4th roll, price $187.83
To capture the full potential of the rise in price is this the correct plan going forward?
Kind regards,
Ray.
Hi Ray- not entirely clear. Were you forced to buy 100 shares at $157.50? If so, you should have an unrealized gain (if you haven’t sold). What are the current positions?
@@RickOrford I sold 1 put option @ $155, [ I do mainly weekly options/strategy: The wheel ] then it was put to me after-hours trading. The price increased quickly so I rolled out and up to $157.50 taking advantage of the price increase, the price now is $184.52 [19 Oct 23]. I have noticed the premium is getting less for rolling out a week, also, if I want to roll out and up, I need to roll out to January 19th 2024. I still have the shares, I don't want to let the shares go for the $157.50 strike. I'm a beginner, learning from your tutorials. Is this the correct strategy?
@@rayrodger I'm sorry, but, something doesn't add up. I understood you got 100 shares of Crowdstrike assigned to you at $157.50 - and they currently trade for $184.52. That means the shares are profitable. But then you say, "I still have the shares, I don't want to let the shares go for the $157.50 strike." The risk in selling puts is that you have to buy shares at the strike price, and they might be worth less than you paid. So you don't have to worry about selling them for $157.50! Rather, the risk is that you'd have to buy more at $157.50.
@@RickOrford I sold a $155 put option, and then I was assigned.
I then sold a call option against the shares I own.
Then I rolled out and up a call option @$157.50.
Now I am rolling out the $157.50 option on a weekly basis for premium.
@@rayrodger Ah ha! You were assigned shares at $155. Then you sold a covered call at $157.50. Got it. Only problem is, that call is way in the money. Continuing to roll is one way that could work, but, you'll need to watch your P&L VERY carefully. Best of luck with this trade!