How to Trade Options for Beginners: Covered Calls on thinkorswim®

Options involve risks and are not suitable for all investors. Before trading, read the Options Disclosure Document: bit.ly/2v9tH6D
If you're a new option trader or a seasoned veteran, let us show you how to place a covered call trade on the thinkorswim® trading platform. We'll first show you what options are and how they work and then demonstrate how to enter an options strategy called a covered call on thinkorswim.
0:00-1:09 Introduction
1:10-6:48 What is an option?
6:49-8:25 How are options priced?
8:26-12:11 What is a covered call?
12:12-30:16 Placing your first options trade
30:17-46:02 Managing your options trades
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Click here for more insights and education: www.schwab.com/learn/
(0623-3DUE)

[@El-matador787]

This is the best Options training I have seen to date. Thank you...

[@nikkiring6430]

Thank you for explaining how to read the position of the option (around the 31-minute mark). That is the most confusing thing I've ever seen until you walked through each column!!

[@mateor9344]

I'll second all the positive comments - this is an excellent tutorial! Graphics were spot-on and overall was able to get this on the first go-around. Thank you sir!

[@ramz5129]

Thanks for the lesson

[@su-megalotto9545]

James....Thank you for a very insightful video on using Think or Swim in making a Covered Call. I am new to Think or Swim and Options trading. Also, I like the enthusiasm you brought to the video.

[@Miller.montana]

Very clear and informative

[@batk0427]

Thank you. He made this easy to understand.

[@sweetheartsammy222]

This is an awesome tutorial

[@jeromechrome]

What a great explanation! Thanks!

[@anthonybavry2642]

Very nice explanation on covered calls for beginners. Thanks,

[@austinb3560]

Good explanation

[@bluesky5587]

Thank u .,,, superb

[@drivendreamskev]

Suburb explanation my friend

[@speedwayman100]

Thanks for this great video john,so when the call seller decides to buy the call back,i'm assuming the initial call buyer gets screwed ? Does he benefit in any way if that happened?

[@CharlesSchwab]

Option buyers are in control of their position and are not sold out of their position by a third entity. The market maker lines up buyers and sellers and may have to take on the other side of the trade if there isn't a buyer or seller. ^BC

[@speedwayman100]

@@CharlesSchwab Sorry if i'm confused a bit lol,if the seller ends up buying the call back,the initial buyer of that call doesn't lose?

[@CharlesSchwab]

I think what is missing here is another individual involved in the transaction. Transactions are not just a buyer and seller but also the market maker, who is also taking on long and short positions. If the seller wants buy back a position and there isn't a counterpart, the market maker takes on that position and looks to unload it when another trader wants to enter that position. He is not "screwed" because that is his role, to line up transactions, and if he is heavy one side and his risk rises he widens the bid/ask spread to help compensate his additional risk. ^BC

[@speedwayman100]

@@CharlesSchwab i got ya now thank you for explaining it to me!

[@jacobbrnnum3013]

Hi - where can I find all the former youtube video on the Collars & Syntetic playlist from TD Ameritrade with James Boyd ? (it has disappeared from youtube)

[@Icy1256]

This is so depressing they deleted all of the old td videos I wish I downloaded them first

[@CharlesSchwab]

We still have the class we just changed the name to "Protective Strategies" to give James a little more leeway on what he can teach in the class. You can find it on our Trader Talk channel every Wednesday at 3:00 pm ET. Here is a link to the playlist. ^BC. ua-cam.com/video/XzJWP8v_Yec/v-deo.html

[@dc-wp8oc]

Still cloudy on the last example. Will the stock be assigned at the moment the price reaches the strike price or will assignment occur at expiration?

[@CharlesSchwab]

Hi dc. From the moment you sell the option it can be assigned. Just because price reaches the strike doesn't mean immediate assignment. It's more likely to occur the deeper in the money an option is and the closer to expiration you get. If at expiration it is in the money you are likely assigned.

[@dc-wp8oc]

@@CharlesSchwab Thank you. That answers my question.

[@user-mx8xg5ex6f]

hello sir how long I can allowed to hold future contract . Can I allowed to do future contract of Microsoft , Tesla and Amazon or not. please tell me the expiry date of future contract

[@CharlesSchwab]

Are you referring to future dated options on stocks? ^BW

[@user-mx8xg5ex6f]

@@CharlesSchwab yes my question is how long I can allowed to hold future contact stock of Microsoft Tesla and google

[@Mike-sd6dq]

😮it says illegal

[@Mike-sd6dq]

I don't get it

[@John1925T]

Dude made it too long. And complex.