Options Trading for Beginners (WITH DETAILED EXAMPLES)
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- Опубліковано 25 чер 2024
- In this video, I'm going to explain calls and puts. I'll explain what they are and how they work, plus show you lots of examples so you can really understand. By the end of this video you will have a solid understanding of what is a call option, and what is a put option and what to do with them.
Download my FREE Options Trading Starter Kit → rosehan.com/learnoptions
TIMESTAMPS:
0:01:20 - Difference between stocks vs. options
0:08:40 - How a call option works
0:10:28 - What happens to the BUYER of a call option if stock goes UP (in-the-money)
0:12:10 - What happens to the SELLER of a call option if stock goes UP (in-the-money)
0:13:38 - What happens to the BUYER of a call option if stock goes DOWN (out-of-the-money)
0:14:35 - What happens to the SELLER of a call option if stock goes DOWN (out-of-the-money)
0:16:13 - How a put option works
0:17:38 - What happens to the BUYER of a put option if stock goes DOWN (in-the-money)
0:19:30 - What happens to the SELLER of a put option if stock goes DOWN (in-the-money)
0:20:48 - What happens to the BUYER of a put option if stock goes UP (out-of-the-money)
0:21:23 - What happens to the SELLER of a put option if stock goes UP (out-of-the-money)
0:22:43 - Summary of calls vs. puts
0:24:18 - The contract multiplier
0:23:20 - How to buy/sell options (the options chain)
0:25:15 - Summary & review
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**BOOKS I RECOMMEND 📚**
I Will Teach You to Be Rich (hilarious how-to book on personal finance for millennials)
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The Little Book of Common Sense Investing (Jack Bogle's classic advice on index funds)
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InvestED (step-by-step, millennial-friendly advice on how to pick stocks like Warren Buffett)
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Unshakeable (this book = courage. blast ALL the fears & misconceptions you have about investing)
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Rich Dad Poor Dad (#1 selling personal finance book of all time... need I say more?)
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Think and Grow Rich (the ultimate book on money mindset and wealth consciousness)
amzn.to/37N2adc
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**MY FAVORITE MONEY TOOLS 🖤**
YNAB (I literally can't live without this budgeting app, so obsessed)
www.youneedabudget.com/?ref=Y...
Wise (like Venmo but for international currencies - I use this app a LOT for my life in Mexico)
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Ledger Nano S (crypto storage hardware wallet, because "Not Your Keys, Not Your Crypto"!):
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DISCLAIMERS & DISCLOSURES ❤
This content is for education and entertainment purposes only. Rose does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
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• Options Trading for Be...
I'm only 7:30mins into this and it's already making more sense than a lot of the videos on options I've watched. Great job!
agreed
same! appreciate you Rose
Agreed you did an excellent job!
Agree!
agreed!
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
Well as you know bigger risk, bigger results, but such impeccable high-value trades are often carried out by pros.
People dismiss the importance of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for qualified consultants and came across someone with the highest qualifications. She has helped me raise my reserve from $275k to $850k, despite inflation.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Angela Lynn Schilling is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for this amazing tip. I just looked the name up and wrote her.
This the first time I didn't fall asleep watching a video on options trading. Can't wait to see your other videos. Thank you so much.
just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge
I agree, even with no experience.. I was able to make about 650k last year and all I did was seek financial guidance from a pro
how can I participate in this? I sincerely aspire to establish a secure financial future and eager to participate. who is the driving force behind your success?
"Dianne Sarah Olson" is her name. In her area, people consider her to be a genius. Look her up; she's well regarded in her field
thanks for the tip miss. I'll also look into her work and reach out to her, but not for me.. for my kids. I'm very satisfied haha
I feel like I knew half of that already, but it was all just a jumbled mess of disorganized factoids. You absolutely took all of that, organized it correctly, corrected some misconceptions I had, and then added more and fleshed it all out together. You have a gift for teaching.
Yes! This!
Such an awesome comment. I felt happy reading it. ☺️💯💪🏽! #RoseIsDamnGood
Bravo to all of that 👏🏾 ... Not sure how I found your channel but so glad it popped up in my feed. 📑
You can reach her via WhatsApp 👇
If you are interested on Investing with Mrs Rose you can reach her via WhatsApp 👆
It took me 1 hour to begin to understand call options, using a Fortune 500's internship-sponsored textbook. BUT it only took me 7 minutes to fully understand the same thing in this video. You did above and beyond making charts, explaining details, providing examples, and pointing out comparisons. Thank you so much.
Agreed 💯💯💯
it would take u more than 7 mins if u didn't spend 1 hour on Fortune 500's.
Seriously, Rose, you explain all of this WAY better than anyone else. Thank you!
So true
this is the first time someone has explained this in a step by step digestible manner that makes sense on first viewing. Thank you!
The way you explained this made it so digestible. Trust me, I paused and rewind this video a million times but I finally get it. Thank you Rose!! ❤️
Rose, I’ve finally found somebody who can actually breakdown option trading concept and TEACH it well and easy to understand. You’re a great teacher. Can’t say the same for the other videos I’ve checked out. They are all over the place trying to explain option trading, as a result, they make option trading even more confusing. Keep it up and thank you.
Finally a video that explains options in a clear and simple way. Thank you 👏👏👏
Great video! Love that you talk in simplistic language that makes it understandable for those of us who have others things to do and cant spend excessive time studying this. Thank you!
I am a beginner at options trading. Tried a couple of paid classes and viewed many videos on UA-cam. But the way you explain it is straightforward to understand. I will definitely be interested in watching more videos of yours, and I am sure I can be enlightened. Thank you so much
This was fantastically explained! One of the best videos I have ever seen on explaining options! I can tell you put a lot of work into it.
Thanks for watching chat
Mrs loveth Patrick
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F•o•r M•o•r•e G•u•i•d•a•n•c•e••••
Thank you Rose. I've been looking for a more simplified explanation. The printable quizzes are an added bonus too and will definitely help during my learning process. It's hard for me to teach myself/learn without actual quizzes and print outs. You're the first person on youtube that I've come across that has printouts.
i don't see the quiz and the print outs do you have the link?
Oh my god, I've literally read Kaplan book, took qbanks quizzes, watched kaplan guy, and THREE other youtuber channels (like 3 times, i watched each of them...3 times) to understand calls vs. puts. I actually laughed at myself half way through this video. FINALLY the light went off in my head, as someone easily explains calls vs. puts, that it actually made me laugh. Thank you, so much, for this. Seriously.
So funny. Same thing for me. Studying for the 65 and haven't been able to get my head around this for 20 years.
I'm currently writing calls and puts at a Delta of .30 and your explanation of options is better than books that I read on this subject.
Great job explaining. Been trying to get my head around this for a while and now I believe I'm starting to understand.
Out of all the tutorial video i have searched and watched on youtube that i did not subscribe but only giving likes, this is the first video that i not only liked, but also subscribed for such a clear big picture and concept with visualization that just makes my professor wasted his entire 3 hours of teaching in the class and we didn't even understand that much details compare to what Mrs.Rose said. like it is insanely clear and make so much sense that i laughed out and cried out during watching half way through the video. i am studying A one-step binomial model but i forgot some of the fundamental things on options. Thank you so so so much.
I’ve studied options before and have attempted watching numerous videos and always tap out early. You’re wonderful at explaining and simplifying! I feel like I am actually wrapping my head around it now. Thank you!!!
***Sign up for my FREE LIVE MASTERCLASS!
$1K On The Side - 3 Insider Tips To Creating Consistent Monthly Cashflow With Options Trading
www.rosehan.com/optionstrading ← SIGN UP HERE
P.S. WATCH OUT FOR SCAMMERS IN THE COMMENTS. I'LL NEVER ASK YOU TO WHATSAPP ME OR SEND ME MONEY.
great job rose
Rose, I love you and your videos but so many people are going to lose money because of this video because they don't understand vega, delta, and volume (liquidity, bid/ask spread). For everybody reading this: if you buy options their TIME value goes down every day, so unless the stock moves more than enough to cover the loss in time value, you'll lose money every day. And it loses more "time value" per day the closer it is to expiration. If you buy an option on the Wednesday or Thursday before it expires on Friday, you could easily lose 50% or 75% of the price you paid just from time decay ("vega") alone. Also study delta and volume (liquidity, bid/ask spread) before buying options. When it comes to selling options, people should also know if you aren't rich, your broker will only let you sell covered calls, which means you can only sell one call per 100 shares of the stock you own. And you can only sell cash-secured puts, which means for every put you sell you have to have enough cash collateral sitting in the account to buy 100 shares at the strike price. Practice with a free play money "paper trading" account before you risk real money!
@@MSmith-xq4xw is vega ...theta?
Never received ‘options trading starter kit’ at my email to download. Tried twice. Pls check.
@@thomaspaul8299 Check your spam, that's where I got mine.
Taking the SIE exam soon and this is the best explanation I’ve seen so far. Very easy to understand. Thank you so much.
Thank you for being a powerful communicator putting across complex concepts in clear and simple digestible form.
Great job👍
Excellent explanation Rose. Thanks for reinforcing my understanding. But one key benefit of options you didn’t mention is the upfront cash required. Instead of paying $14,500 upfront to buy 100 shares, you only need $141 upfront with all the benefits of actually owning the shares.
Rose this is one of the best videos on Call & Put Options I have come across. I have always loved your content and the way you explain complex concepts in more simplified manner. Thank you for doing what you are doing and sharing your amazing journey!! Keep up great work and keep making excellent videos. :)
Soooooooooo glad I came across this will be looking into the rest of the series. I been pulling my hair out trying to figure out calls and puts . You made it easy thanks
The Justin/Jacklyn example is the best explanation of a call buyer/seller transaction I have seen on UA-cam to date. Terrific video!
Thanks, Rose - single best explanation and illustration of basic Calls and Puts that I personally have ever seen!
I've been interested in this for several years after someone introduced it to me but this is the first time it has been explained in such an easy way to understand. Thank you so much.
Wow smart person!!! Thank you 😊
This is the most clear and concise explanation of options I’ve heard! Thanks Rose 😊
Agreed !
INCREDIBLE explanation. Broke it down Barney style, and finally I got it! Been watching so many videos on options and this is the only one that helped me actually see it. Thank you!
I've watched several videos on trading options and I thought I had it nailed until I watched this video. Everything I thought I knew I didn't know but I do now. Thank you for explaining options in detail.
WOW! Awesome job! I always thought options were irresponsibly risky, but you explained it in a way that promotes responsible investing through options. That is amazing! I'm very excited to see how the rest of your videos turn out .
Thank you so much for your detailed video, I've been learning over the week and you have simplified options trading tremendously.
You made more sense than the millions of web pages trying to explain calls and puts, not to mention options and options chain!! TY TY TY
As a beginner, it helped me a lot better in understanding about options than others’s videos on this platform. Thanks for your great work, Rose!!!
This was really great and easy to follow. I enjoyed it. Thank you so much.
I’m so excited for this series!! There’s definitely a learning curve to options but it seems like there’s a lot of profit potential as well. Can’t wait for the next video!
I got it! I had to listen to this a few times, but now it makes sense. Thank you, Rose. You taught me about calls and puts! Yippie!
Never understood options up until now. Thanks. Crystal clear.👍
Rose thanks for this, I am up £ 1,200 in profits for the month because I started again boldly
Good for, that's something worth celebrating dear
I like how simple this video is but in it's simplicity I still find it hard understanding by myself, I have been struggling to make profits. Can you guide me
@@Thyago2420 Watching videos alone don't help, if you want to be successful like I am in the market you will have to guide,I make profits because my trades are handled by an expert Mr Benjamin H. Ravies he will help you through too if you seeek his help
@@Pattier05 Surely I would prefer that over the losses I have been accumulating dear, please can you connect me to him
BENJAMIN RAVIES )a( gmal comm to leave him a message okay
You always come through with the knowledge I need 😁. Thanks for all your wise words. Class in session 🤓
This is the only video that I actually found helpful to understand calls and puts! Thank you for making this
You have organized the whole subject in a very practical manner. I have seen several videos from others so far but more and more confusing :) thank you for your time
0:46 Things you can do with options
3:06 Option
6:51
7:15
8:42 Calls 101
15:36
16:15 Puts 101
22:34
22:48
23:31 Options Chain
You're much appreciated.
This is exactly what I didn’t know I needed. I wanted to dabble in forex, tried and was like Fffff that. This is more my speed.
Thanks for watching.!
The support is very much appreciated.
For more guidance on stocks to invest in, clearification tips, support,account management and how to enroll on the master class inbox me privately using a text request to.👇
Plus One* Eight* One* Three* Seven* Zero* Four* Zero* Seven* Four* Six*
✅✅
Once again you explained this better than other so-called "Options Trading for Beginners" videos I've come across. You definitely have what it takes to be a teacher. Thank you for dumbing this down for us beginners.
Thank you so much! ive watched options trading videos before to try and learn and it just blinks right out of my head.. This was useful and retainable
This was so great! I’ve been wondering what “puts” are for so long! Thank you for explaining so clearly with the detailed examples. 💕
Hi Taz, how’s it going for you? Have you started or was it just a dive into some knowledge you wanted?
I finally understand options! Thank you 😊!
The charts helped a lot and were more valuable than the 100 words others use to explain it.
You are absolutely amazing and such a pure soul! I can read that even through a digital screen and thus I appreciate you for putting this info in such an easy access for understanding!
Awesome video! Slower paced, repetitive and articulate. Exactly what I needed 😎 Thank you!
The slower and repetitive is key. To confirm that what we understood (or thought we understood), is correct (or incorrect).
Great video. Easy to follow explanation along with examples and summary at the end of the video. Thanks Rose for demystifying the Option trading.
Option Trading - summary:
1. Stock options give the option buyer the right to buy or sell the underlying stock at the predetermined strike price, by the expiration date.
2. Calls give you the right to buy, Puts give you the right to sell.
3. For a Call to be in-the-money, the Strike Price needs to be LOWER than the Market Price of the underlying stock.
4. For a put to be in-the-money, it's the opposite: the Strike Price needs to be HIGHER than the Market Price of the underlying stock.
5. Whenever you buy the options, you have to PAY the premium upfront. Whenever you sell the options, you COLLECT the premium upfront.
Rose, I've been an investor for a long time but have never used options. This was an excellent tutorial on a somewhat opaque subject, clearly explained and illustrated with great examples. Well done, and thank you!
Rose, you are so great at explaining complicated matters. I mentioned this before, but you were the first person to help me understand index funds. Thank you for all you do!
I am a slow learner and spent months searching all over youtube and google but still find it hard to fully understand calls and puts. But finally, I found yours and although I still have to see it twice, I got it and successfully traded a few of them past few weeks. Thanks Rose!
I bet
Excellent, you have made a difficult topic clear to me. Now I can 80% understand what options are. Great job. The best part is the whole video is watchable, not boring like some of the others.
Ive watched over 15 vids on this, You have made it so clear anyone can understand this. Thankyou .
More power to you and appreciate all your efforts in making this video actionable and easy to understand to everyone.👍
I’m currently studying to take the SIE exam and this was SUPER helpful! Thank you!
You did an amazing job at explaining this. I don't think i've come across any other article, document or video that explains this complex concept as simply as you have. Cheers.
Thanks so much Rose. I like the way you explain things and take your time with it.
I spent last week working through your starter kit and have printed out the grid to ensure it sticks in my head. Honestly can't wait for your course. Thanks so much for putting us on, so much of your life resonates with me and I really wish I knew you in real life! Can't wait for the next one :)
Thanks for watching.!
The support is very much appreciated.
For more guidance on stocks to invest in, clearification tips, support,account management and how to enroll on the master class inbox me privately using a text request to.👇
Plus One* Eight* One* Three* Seven* Zero* Four* Zero* Seven* Four* Six*
✅✅
took a whole class on this last semester and was totally lost so glad I understand it better now 😭😭
What class was this ?
@@TiffanyLand Principles of Investment 😂😂
Very thorough and easy to understand ! One of the best videos on this subject I have seen thus far ! Great job ~
So excited for this series! :D
this video was the one that helped me wrap my head around these concepts. thank you!
I have the basic knowledge of buying and selling calls or selling covered calls, but you have opened my eyes to buying puts. Thank you for this video.
You explained better than so-called investing experts. I listened to other experts but always had questions or was confused.
Of all the options tutorials I've come across, yours was the most informative and understandable. I've learned more from this one video than other hour long series on this topic! Thank you so much Rose!
Thanks for watching.!
The support is very much appreciated.
For more guidance on stocks to invest in, clearification tips, support,account management and how to enroll on the master class inbox me privately using a text request to.👇
Plus One* Eight* One* Three* Seven* Zero* Four* Zero* Seven* Four* Six*
✅✅
Now I understand very clearly. Thank you Rose.
I listened to your. Ideo 10 times in a row and replayed a few frames.. today is day 1 for me and I feel confident I understand most of it, so next week I will begin this new endeavor!
This is incredible! Thank you for creating an easy-to-understand explanation. I have no idea how I stumbled upon your videos but so glad I did. Super stoked to learn more!
I'm learning so much from you Rose, thank you!
This was so helpful and CLEAR. Thank you for making this so easy to understand and also for representing women in finance so well!
I’m studying for SIE and you really helped me understand this concept. Thanks so much
Just stumbled on this. I thank God I got my act together and took paid attention to my finances. It’s not been easy but investing into the market turned out to be rather rewarding.
Levi is indeed a real stand up guy when it comes to trading. Nothing but profits trading for a year and some months now with him.
This was really good. Very detailed and easy to follow. Thanks!!
This made my concept of calls and puts so much clearer! Thank you!
this is an insanely well worded and explained video, literally the best I've seen by far
Great video. Worth adding that overall buying options has limited risk (just the price paid for option) while selling has unlimited (if you need to pay you pay as much as the movement which could be huge).
This was an amazing way of explaining calls and puts. Thank you so much.
The more videos i watch the more confused I get as a beginner. But after watching your channel...BINGO..i manage to understand the basic concept. Good job
Watched by mistake , and glad I did. Great job.
Have not seen the other vids yet, but examples miss one important concept. The $5 dollar premium per contract really cost $500 due to 1 contract=100 shares. Other than this great explanation!
She explains that near the end of the video
I'm struggling in this market. Stocks that I have held for months and made profits from are not behaving the way I'm used to so I’m quite indecisive on how to further tackle this market, any advise would be grateful.
@Asta Seppala
That sounds great and what signal do you invest with ?
@Asta Seppala
That's awesome and please how do i connect with this broker lady ?
I'm currently on her website now, her reviews is very impressive and i left a message for her. thanks alot.
If you know what you're doing, you can easily get 500-800% returns annually. No need for these "experts", most of whom can't even beat the S&P 500. You're better off buying an S&P index and selling covered calls and rolling over and up as needed.
You seem real, but I'm sure you were responding to a scammer, very careful with these fake "helpful" gurus
Thanks Rose. I've been a high school teacher for over 30 yrs, so I believe I know what great teaching is. Am seriously considering signing up with you so that you can help craft and guide my option trading knowledge and skills as I have never done option trading before. Though I've been a swing trader for 4 years now. I do ok doing it but I want to step it up and make $ on a consistent basis on both up and down markets. I plan to retire from teaching next year so option trading is what I want to do on a part time basis, 2-3 hrs/day, when I retire.
Keep up the great work.
Mahalo/Tofa,
Matt Elisara
Thanks, Ms. Han, you are a life saver. Watched 3 videos prior to yours, and this is by far the best at explaining.
Looking good lady and great content, everything is about educationg one's self first before jumping in, thanks for the asistance. Your content has been a great aid in mapping future financial choices. take care and stay safe
Thank you for doing this options series!! Im really interested in learning to sell cash secured puts and buying covered calls but I still don’t really understand the mechanics of it all…so this is perfect timing 😀
If in the learning phase, why would one want to "Buy" a covered call? And how can it be covered if you are buying?
@@aminlakhani8350 for the buyer, it’s not going to matter if the call is covered or uncovered. That difference falls on the seller. The buyer would purchase a call option if they think the price of a stock is going to increase. To be “in the money”, the Market price of the stock will need to move above the strike price of the call option contract.
A call is considered covered when the seller already owns the underlying stock. Ex: sell apple call contract, seller already owns 100 shares of Apple and can deliver the shares if the buyer exercises the option.
:)
@@literary-spice correct, I was responding to @mmcali who said he/she is interested to learn about "Buying" covered calls. Probably meant to say cash secured calls where the buyer intends to buy underlying equity at best possible price and without risking much should it tank. But thanks for explaining!
@@aminlakhani8350 oh I feel silly now! Thanks for explain that nicely :)
@@literary-spice no worries, we're all trying to learn something here. I am new to options myself and have long way to go. Happy trading!
Best explanation on this topic across all UA-cam videos! Thanks Rose!
By far the most explanatory and informative video about Options trading. Thank you, Rose!
Love this episode! The terms can be confusing. It took me a few months to get the hang of it. You have to think of options contracts in pairs. You’re either entering a trade or closing it. I hope the following terms will help newbies:
Buy Call to Open - you are opening a call position
Sell Call to Close - you are closing the position
Sell Call to Open - you are opening a covered call position
Buy Call to Close - you are closing a covered call position
Buy Put to Open - you are opening a put position
Sell Put to Close - you are closing a put position
Sell Put to Open - you are opening a cash secured put position
Buy Put to Close - you are closing a cash secured put position
Pretty nice extra, thanks!
You're the first financial UA-camr I found that has ever explained this. Crazy!!! Good job.
@@user-gf4yv5ll1n spam
You're looking at the wrong videos... lol
Thank you for the patient and detailed teaching🙏
I'm completely naive about trading in stocks which I'm now trying to get into, but you are so good explaining this such that I'm forced to call you 'a natural born teacher'. God richly bless 🙌 you 💖.
Great video! I have traded and invested stocks for years. I never bothered with options, but this is sure an interesting video. I kind of get how to do options now, so I may give it a whirl sometime.
I really just watched the video to see the doggy 🐕 in the background though. :D
😆🐶🐶
Thanks for your effort Rose.. I really appreciate this learning material about options trading
Thank you! Finally, an easy explanation to understand!