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.
I can only agree with the other comments on this video, and that is, it is truly the best video on option trading on youtube, or anywhere else. It is second to None. Thank You!
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!
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!!
James you are a fantastic teacher! I have been flailing trying to keep up with the beginning options 12 week class and I couldn't pick up the underlying detail understanding AND all the "lingo." The detail that you provide in this class is superb and I hope to find more like this - can you direct me to more option strategy classes like this? there is so much education it's a little daunting to try and hunt through all the course listings.
Michele. Going through the 12 week series over and over again will help and many people do that. Make sure to review the two option courses designed for beginners. They are: Options for Beginners: Income Strategies and Directional Options: Single Options and Spreads. Also select a strategy and paper trade it a lot and attend the specific strategy webcast. One example would be Long Options. It is hard to learn all strategies at the same time so it can be helpful to initially choose one or two strategies and focus there. I hope this helps. ^CH
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)
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
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?
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
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
ATM is simply the strike price closest to the current stock price. Sometimes it could have intrinsic value but some sometimes it won't. There is not anything defined on a template. ^CH
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.
James, When I go to sell a covered call on live TOS for 100 shares of a stock that I own, in the order confirmation window max loss is showing as infinite. Is that an error in TOS? Also, at the bottom right of the window there is a check box for "create covered call strategy". Should that be checked?
LMF. You don't need to click the box for Create covered call strategy in order to sell the call. If you do select the box it will bring up a Strategy Roller interface which you don't need but is an extra tool for when you are rolling calls. ^CH
i enjoyed the lesson, but was confused at the end with the covered call. having to do with why the seller would by a contract back. are you saying that no buyer has purchased the contract or that the buyer of the contract has not yer exercised the option? if the latter, i am confused as to why the buyer would allow the buyback seeing that if the trader exercised the option at that point they would make much more. any help is appreciated.
Hello and thank you for reaching out. While we can only offer limited support through social media, our specialists are happy to assist. To discuss your concern with a broker, please call 800-435-4000 or initiate a secure chat session on Schwab.com, available 24/7. ^^CH
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
This is the best Options training I have seen to date. Thank you...
I watched number of videos on covered calls but in this one I understood the covered calls 100%. This is the best video to watch.................:)
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.
These are the best explanations of options on youtube.
Wow...such an good explanation. I will watch this again and again to make sure I understand. But the best explanation on the subject
I actually appreciated the longer training overview here. This gave me a better understanding covered calls than I've gotten recently. Thanks! 😊
I can only agree with the other comments on this video, and that is, it is truly the best video on option trading on youtube, or anywhere else. It is second to None. Thank You!
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!
This is an awesome tutorial
Thanks for the lesson
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!!
Very clear and informative
I think you are a brilliant teacher, I appreciate being taught in this manner, thank you
Great class, thanks for providing the details for each step.
Excellent explanation on covered calls. Thank You👍👍👍👍👍
Good explanation
Great video. Went over many of my questions.
Thank you. He made this easy to understand.
James you are a fantastic teacher! I have been flailing trying to keep up with the beginning options 12 week class and I couldn't pick up the underlying detail understanding AND all the "lingo." The detail that you provide in this class is superb and I hope to find more like this - can you direct me to more option strategy classes like this? there is so much education it's a little daunting to try and hunt through all the course listings.
Michele. Going through the 12 week series over and over again will help and many people do that. Make sure to review the two option courses designed for beginners. They are: Options for Beginners: Income Strategies and Directional Options: Single Options and Spreads. Also select a strategy and paper trade it a lot and attend the specific strategy webcast. One example would be Long Options. It is hard to learn all strategies at the same time so it can be helpful to initially choose one or two strategies and focus there. I hope this helps. ^CH
@@CharlesSchwabthank you I will do that I appreciate the suggestions
What a great explanation! Thanks!
Thank u .,,, superb
do you have a class ?
Very nice explanation on covered calls for beginners. Thanks,
Suburb explanation my friend
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)
This is so depressing they deleted all of the old td videos I wish I downloaded them first
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
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?
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
@@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?
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
@@CharlesSchwab i got ya now thank you for explaining it to me!
Where is ATM position in Schwab template?, Please explain
ATM is simply the strike price closest to the current stock price. Sometimes it could have intrinsic value but some sometimes it won't. There is not anything defined on a template. ^CH
Do you need to change the Spread from single to covered call?
Yes, you could do it that way. You could also buy the stock and sell the call separately, still using the single category. ^MF
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?
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.
@@CharlesSchwab Thank you. That answers my question.
James,
When I go to sell a covered call on live TOS for 100 shares of a stock that I own, in the order confirmation window max loss is showing as infinite. Is that an error in TOS? Also, at the bottom right of the window there is a check box for "create covered call strategy". Should that be checked?
LMF. You don't need to click the box for Create covered call strategy in order to sell the call. If you do select the box it will bring up a Strategy Roller interface which you don't need but is an extra tool for when you are rolling calls. ^CH
How many covered calls can I have active in thinkorswim?
Can I open 3-4 covered calls per week?
thank you
I don't believe there is any limit as long as your account has the capacity. ^CH
i enjoyed the lesson, but was confused at the end with the covered call. having to do with why the seller would by a contract back. are you saying that no buyer has purchased the contract or that the buyer of the contract has not yer exercised the option?
if the latter, i am confused as to why the buyer would allow the buyback seeing that if the trader exercised the option at that point they would make much more.
any help is appreciated.
Hello and thank you for reaching out. While we can only offer limited support through social media, our specialists are happy to assist. To discuss your concern with a broker, please call 800-435-4000 or initiate a secure chat session on Schwab.com, available 24/7. ^^CH
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
Are you referring to future dated options on stocks? ^BW
@@CharlesSchwab yes my question is how long I can allowed to hold future contact stock of Microsoft Tesla and google
😮it says illegal
I don't get it
Very confusing not enough explanation. You need to be thorough on all of it.
looks to me like schwab just charged me $400 to sell a covered call...
Trading BOEING on 911 is wild.
Too risky for me lol
Dude made it too long. And complex.
how so?
if u don’t have 45 mins to learn then this isn’t for you