Bill Poulos & Profits Run Present: The Power of Options Delta When Trading (What Is Delta)

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  • Опубліковано 1 жов 2024
  • Bill Poulos & Profits Run Present:
    The Power of Options Delta When Trading (What Is Delta)
    The power of options delta in how it relates to options trading is explained in this simple training video.
    If you've ever been confused by the concept of options delta in the past, this video will clear up any confusion you may have had.
    Whether you trade call options or put options, you can take advantage of options delta to help you limit risk and maximize profits every time you trade options.
    Also, if you're looking to learn how to trade options, understanding options delta is an important first step. "What is options delta?" or "What is delta?" are questioned answered in this video.
    You'll see why you don't really need to understand the complex Black-Scholes model calculations that determine the actual delta values or the various greeks. You just need to understand the power of options delta to advantage of it as explained in this simple video.
    For more training, get my free "dummies" guide to options trading here:
    www.prtradingre...

КОМЕНТАРІ • 59

  • @kingcountyband
    @kingcountyband 4 роки тому +9

    you know someone crushes trading options when he can calculate the time value and delta effortlessly in his head, holy shit, trading goals

  • @sonnypruitt6639
    @sonnypruitt6639 8 років тому +30

    The more I learn, the more confused I get!

  • @DANIEL-ls5ku
    @DANIEL-ls5ku 9 років тому +28

    newbies, don't just jump buying call options straightaway, this presentation does not include vega which is the volatility, if you buy call when the volatility is high, you could end up not make any money (or even lose) even when the market hits your target.

    • @fantasticworld7859
      @fantasticworld7859 6 років тому

      +Fantastic World Cheers for this, I been tryin to find out about "vol trade" for a while now, and I think this has helped. You ever tried - Genubrey Mispriced Infiltration - (should be on google have a look ) ? Ive heard some pretty good things about it and my brother in law got excellent results with it.

    • @nuthinbutbusiness
      @nuthinbutbusiness 4 роки тому +1

      I see what you are saying but The premise of this video is for us to understand DELTA and not volatility, Vega etc..

  • @paulpena5040
    @paulpena5040 8 років тому +9

    They say a majority of people who trade options lose money and I think I know why.
    When most retail traders buy a call option that costs say $700. In their mind THAT is the stop loss.
    They say to themselves "Hey I could make several thousand and I'm only risking 700".
    NO!!
    You should NEVER lose the entire premium of your call option, don't be a sucker! If, in a normal stock trade you would set your stop loss at a 10 % negative move. Then you do the same with options. If that option drops to $630, I don't care if it's because the under lying security went down, or it's just time decay or volatility abnormalities, or whatever. You sell when the premium drops to $630.
    Personally I have better than 80% success rate with options (though only 15 % rate equity success due to stupid losses in non-option (outright futures' trades)).

    • @beezusdebonair6475
      @beezusdebonair6475 7 років тому

      Paul Pena thanks for this, love it because this is very helpful

    • @paulkaz1752
      @paulkaz1752 4 роки тому

      The problem is that the trade often moves against you initially when you buy options and then Mau move in your favour. In my opinion, 10% of premium paid is too small as a stop loss. Or are you saying that you need to make sure that your entries are so tight that 10% of premium is reasonable? Thanks.

    • @beatballermusic
      @beatballermusic 4 роки тому

      Paul Pena Intersting Kudos. How often do you buy OTM options in your experience especially for swing trading.

  • @lesteredwards1891
    @lesteredwards1891 4 роки тому +2

    I'm new to learning about options. You explain the concepts very simply. Painless education! Thanks!

  • @dixiedoll9944
    @dixiedoll9944 6 років тому +3

    Great explanation of Delta!!! I learned a ton from my brother, but you helped give the full picture and fill in what I was missing. Thanks!!

  • @youngscooter6290
    @youngscooter6290 7 років тому +2

    Buying calls should be for quick pops in the underlying, yes it's better to buy ITM call options because of the higher Delta, but try to have the option expire many months later to avoid Theta decay. Buying calls/puts are directional bets for more sophisticated investors, Selling premium is a great way of income for new investors, with very high probability of success.

    • @paulkaz1752
      @paulkaz1752 4 роки тому

      How can you safely sell premium without the risk of blowing up your account?

    • @youngscooter6290
      @youngscooter6290 4 роки тому

      Paul Kaz tons of professionals do it, but I wouldn’t recommend it being the only strategy. There is a risk of blowing up if you’re not careful with your risk management, if you buy a lot of single contracts, with enough multiples of single contracts bought, your probability of them expiring in your favor are 70%...but don’t expect more than 10% a year, that’s when people blow up their accounts unfortunately. But if you do learn how to trade properly one day, (I recommend learn from a professional, with a real background you can look up in the financial industry like a successful prop trader etc, hedgefund trader) the leverage from directional and pair trading is enormously powerful tool for compounding, with less risk than common stock. Don’t pay much attention to videos or comments on UA-cam, you won’t gather any real or reliable information, just noise.

    • @kkpa104
      @kkpa104 4 роки тому

      @@youngscooter6290 hi shalvin what's the best way to contact you?

  • @argonaut119
    @argonaut119 9 місяців тому

    Hey Profits Run Todd: Interesting videos. Checking ProfitsRun out. Also just subscribed. Can you tell us which Charting tool are you using for this video (Trading View, Stock Charts, etc)? Which charting tool do you recommend for a basic beginner? Any videos on how to use this Charting tool? Yes, T or S, Active Trader Pro, Trader WorkStation all have their charts, but they are more complicated to learn, use, run... Just looking for an outside charting tool without all the bells and whistles. And easy to learn features. Thanks

  • @sandrojlu
    @sandrojlu 4 роки тому +1

    Good video. I felt better about being on the red with the option trade I bought yesterday. I need to watch video at least once more. Looking forward to it. Thanks for helping us novice traders learn. Sandro

  • @stevekaldi1619
    @stevekaldi1619 9 років тому +3

    Excellent video HOWEVER what Delta value are we looking in a trade ? Say a call vertical ???
    Thanks

  • @tmills86
    @tmills86 5 років тому +2

    Great video. Watch on 1.5 speed.

  • @PC-mh4uh
    @PC-mh4uh 4 роки тому +1

    That was the best explanation of Delta I have seen yet. Thanks!

  • @jasonwshannon5000
    @jasonwshannon5000 7 років тому +1

    It hasn't quite sunk in yet, however the more I watch this over and over it begins to make sense.Thank you very much for the tutorial,

  • @sudhirpatil3434
    @sudhirpatil3434 3 роки тому

    i watched video over n over again just to make myself clear about Greeks in options- ,the subject although remains much confusing for newcomer like me .
    Let me thank you n for putting up video in simple language n also UA-cam for giving me chance to view priceless information free of cost !

  • @sasikalam1531
    @sasikalam1531 6 років тому +1

    thanks for this clear and simple explanation

  • @jaysant6958
    @jaysant6958 7 років тому

    Okay so if the stock price moves up one dollar, the option price also goes up according to the delta value. What I'm wondering is if the stock price moves up one dollar FROM WHERE, will the delta value then be applied to the option price? From the previous day? From the opening of the day? Where??

  • @shalice8455
    @shalice8455 3 роки тому

    good video

  • @jammerp226
    @jammerp226 9 років тому

    Great explanation on a difficult subject

  • @joein954
    @joein954 9 років тому +1

    great video, easy to understand

  • @JoseLuisTV1
    @JoseLuisTV1 6 років тому

    Yes, watch Vega(Try Sell High Vega and But Low Vega)-Reserach it. Also something not said Delta also tells you the probability of the options ending ITM (In The Money)

    • @abhijitbanerjee8326
      @abhijitbanerjee8326 5 років тому

      that is not true; it is major approximation to treat Delta as ITM %. Delta, by definition is the change in options price due to a change in the underlying

  • @1minutetomastery881
    @1minutetomastery881 5 років тому +1

    It's options, and not aptions grandpa!

    • @conq3097
      @conq3097 3 роки тому

      Wrong, it's "stacks and aptions"

  • @riy99
    @riy99 9 років тому

    It's a simple video, but it's worth it. So, if you are one of the weekly options traders you should determine what is the trend for this week, is it up or down, and base on that buy Call or Put in money. Is that true?

  • @manugupta3409
    @manugupta3409 8 років тому

    the delta in so in the money is going to be atleast 125 %in up side and not just 1 dollar premium it will be atleast 2 to 3 doller premium

  • @jessflores9966
    @jessflores9966 7 років тому

    You make it beco
    Me very simple,luv the way you explained Boss.

  • @scarfo441
    @scarfo441 8 років тому

    nice,ive never looked at delta this way.ditmo is the way to go

  • @chewie1355
    @chewie1355 4 роки тому

    Delta neutral is my goal

  • @XX-rr6lg
    @XX-rr6lg 5 років тому

    Nobody better than a greek like Bill to explain the options greek terms.

    • @AnitaCock
      @AnitaCock 5 років тому

      BULL $HIT! Read 'it's (AS IN '$HIT!) reviews: Why is this WORTHLE$$ POS EVEN ALLOWED TO MARKET HIS '$CAM' ON UA-cam??? www.forexpeacearmy.com/forex-reviews/3407/www.profitsrun.com

  • @TheQuesoJC
    @TheQuesoJC 3 роки тому

    Thanks Bill!

  • @ogilo201
    @ogilo201 8 років тому

    Delta is just the piece of the puzzle here. The farther out of the money you are, the more intrinsic value you lose as well. IV or Implied volatility also play a crucial factor. If you jump into an option with over inflated IV you could lose money as the underlying stock goes up if the IV crushes on you.

    • @ByZenok28
      @ByZenok28 6 років тому

      Samson can you please explain what you just commented?

  • @kapurshah8602
    @kapurshah8602 7 років тому

    Use full information, enjoyed

  • @ethanallen7648
    @ethanallen7648 9 років тому

    awesome videos!

  • @billyforkner6198
    @billyforkner6198 6 років тому

    Quality explanation

  • @forexformulasuccesstrading
    @forexformulasuccesstrading 9 років тому

    Nice video..

  • @jasonwshannon5000
    @jasonwshannon5000 7 років тому

    Thank you Bill.

  • @ErikLessmann
    @ErikLessmann 8 років тому

    Helpful

  • @janeyfarha9394
    @janeyfarha9394 8 років тому

    This app really delivers. Try it.

    • @janeyfarha9394
      @janeyfarha9394 8 років тому

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    • @1minutetomastery881
      @1minutetomastery881 5 років тому

      Which app sis?

  • @OlegYarkayev
    @OlegYarkayev 9 років тому

    thank you!

  • @jerrynix5206
    @jerrynix5206 5 років тому

    Excellent video! Very easy to understand.

  • @TheSilkoth
    @TheSilkoth 9 років тому

    First time i've ever understood options