You forgot the effect of volatility on options. Buying calls when volatility is high means you are buying an overvalued option. When volatility drops, your option value will decrease quickly and you will be caught in a so-called "volatility crush". Also, buying ITM LEAPS with a delta of 1.0 is not a good choice. The acknowledged sweet spot is a delta of 0.70. It will cost significantly less and its delta will increase toward 1.0 as the stock price increases.
Retired with a 7 figure portfolio and Receiving about $43k in dividends. I have been in the Stock market about 20 years. Am I worried? Am I selling? Absolutely not. I have purchased growth stocks too a little at a time over the past few weeks. I am going to sit back and observe how this all plays out, adding more at a time. my investment strategy with my FA actually calms me down. Eye on the prize, stay the course!
@@frederickscott2762 Haha you don't have to be surprised about expert Mrs Laura trading service she's really good and everyone love genuine services, she has helped me recover what I lost trying to trade on my own
Mrs Laura Kathers is a sincere woman who understands the challenges faced by beginners.i started trading bitcoin under her guidance after seeing her interview with CNDH.she does not request for any chargers to teach investors on how to trade and generate profit for themselves .
That means a lot! I was always confused when learning options so my number 1 goal is to break everything down into easy to follow steps. Doing my best here :)
I LOVE the way you explain options! I appreciate the info! Wish I would of seen this video about a month ago 😪. Lost like $1,200 (house profit money-still hurts though) on a Draft King options call contract 😕 ... ya live & learn. Thanks again for the lesson! 🙂
Thankyou Alex for bothering to state the obvious. It's really reassuring to us newbies & removes much of the fear & uncertainty! Love your videos! Used the selling a put strategy to buy shares cheaper than l thought l could. Next l'll sell a covered call with them & start shopping for my first leap. Really appreciate you! Subscribed!
You can always reduce the capital requirements of LEAPs by either trading them on much cheaper stocks or by selling shorter-term options against them :)
Hey I appreciate your channel thank you so much for the videos the way you explain and talk makes it so much more clear compared to the other videos I have seen please keep making more videos I do have a question though about the short contracts aren't they good when there is like an upcoming Catalyst coming and you know that may drive the stock to go up or down in the short term
First, you have to make more videos. We need more information. I love you material man! Second, so your trade cost like $18k did you ever see it loose money in those 3 months if so how much? Third, I think I remember you said you can sell out if you want at any time before expiration is that correct?
Hey Jose! I literally just uploaded a video about stock splits and exactly how your option positions will be adjusted! Check if out if you're interested... ua-cam.com/video/hxfF3g9mKrM/v-deo.html
There are some good points. Buying LEAP Options makes sense to insure his stocks. But to make profit there are a dozen of other strategies that have more benefits. Some sentences like "I think the price of Aaple will be at" is more gambling than it has to do with trading. Even the best analyst can't predict the price over a long term because there are so many variables
Alex so you can buy a LEAP contract in the money 1.5 - 2 yrs out. Then write contracts against it all the way to expiry. Basically the same as a covered call ?
Yup that's the basic structure of the Poor Man's Covered Call...very similar to a regular covered call using stock but requires significantly less capital!
Every financial goal requires 💯patience dedication and consistent spirit knowing that investing is currently the most lucrative business in the world, both NFT, real estate and Crypto shares are really positively changing people's lives, I know the problems for technology believers will end soon.
Simple step-by-step process, excellent communication and response times.The service was extremely streamlined and friendly throughout. Would recommend them to anyone give Sophie Arthur a try.
Sophie Arthur really knows her way around trading, its evident from her deep knowledge of how the market works, reading signals to perfection, l feel very safe trading with her.
There is really no doubt about Sophie Arthur. I have made $15,000 profit with an initial of $5000. She is really good at what she is. I feel safe trading with her. She is top class at what she does.
Can someone answer this? I usually get the nearest otm line. For example with Apple today So if strike was $174.35 and i chose otm $175. I’m trying to understand why not thi method compared to deep in the money?
Dexter, good question! The advantage is delta, but everything in "options world" is give and take. So, the OTM call will cost you less, but will have a lower delta. You are paying less, but the option is not as "potent" as a high delta one. I buy deep ITM (Delta .8 or larger) because I want to exercise the call and capture the delta-minus-one. Also, if you plan on exercising the option, I recommend going with relatively low IV underlyings. That way, you can quickly sell the shares you just bought and feel confident in what you will get paid for them.
Options that are at the money have a lot more extrinsic value than in the money contracts. Their overall prices might be cheaper, but a significantly larger percentage of that price is wasted on that extrinsic value.
To obtain financial freedom, one needs to be a business owner, an investor or both generating passive income particularly on a monthly basis... Thank to Mrs Louise O'Brien for helping me achieve this.
I have traded with a lot of individuals but I have never come across anyone as good as Mrs Louise O'Brien, just by applying her strategies, I now trade independently. she is the best I'd advise any novice in investing to trade with her
Amazing I also just started trading with her, she is the best at what she does with an initial investment of$1400 i made up to $5230 in just a week of trading with her. her strategies are mind blowing.
When's the best time to sell LEAPS? Let's say the option expires 2 years from now, should you sell with ~2 weeks to expiration or keep holding? This obviously depends on a lot of things but in general when is the optimal time to sell so that you don't get destroyed by time decay?
A common approach is to sell the contract at a certain percentage of the initial debit paid. For example, if you bought a LEAP contract for $1,000 and wanted to take profits at 50%, then you would aim to sell the contract once its price reaches $1,500.
Alex, thanks for the video! I hit that like button. I am still a little confused on LEAPS. If you buy one call option of AAPL (for example), in the money or out of the money options- I can “control” 100 shares while paying a premium. If the stock price rises over time, how exactly am I making money? 1. Selling the LEAP option back to another investor? 2. Or am I exercising the option, then buying the stock, controlling 100 shares? So would I need an additional amount to purchase the 100 shares of apple? Or am I just selling the option back? John
Pretty simple John ! It’s one. You’re making money on tue premium, by selling back the option to the market once it reaches a higher value than what you bought it for. take emotions away from investing.
@@chatomeza1 Okay that makes sense. And the price of the stock would dictate the ‘sale’ price of the option once sold? Which is why the “Greeks” are so important.
@@jbenso128 yes. Just compound percentages until you can afford 100 shares of a desired stock and sell covered calls & puts until you build enough equity on you portfolio to get loans against securities from brokers like fidelity or eameritrade to acquire real state and invest & real businesses. The right people will listen to that.
John, this depends upon your delta, and how deep ITM the call is. So, for example, if you buy a LEAPS that is ITM and the delta is .7, you are able to capture 70% of the gains but only using a fraction of the capital. Importantly, the higher the delta, the more that option will cost. A huge advantage of LEAPS is the low theta, so be patient!
Good Morning, Thank you for the videos and input. Very informative. I am a new investor and would like to get into trading options. I only have $500 in my Robinhood Acct and do not own any shares. I am also on Level 2 on Robinhood's option's so that limits me from several option strategies. I am not able to upgrade to Level 3 yet. With a smaller cash acct, no stocks and being a Level 2 what are a couple of good strategies I could use to trade options. I would appreciate any advice you you could provide. Thank you in advance for your time.
Hey Alexa,thank you for your videos, you are still my no 1 finance guy on UA-cam, my question is this, I bought a deep in the money leap options of one of the EV charging companies with a delta of 0.9 ,expiration is about 3yrs, good volume and open interest but as the stock price went slightly down( my strike was at $5, stock price was at $11, new price change was $10.50) my premium paid also went down even when the new stock price was still nothing close to my strike price, can you explain why they happened?.
@@user-fb8bo3ys2f if that happened .that means if I buy Tesla leaps if it drops to .. 600 then back to 800 I will still be in the loss cuz it dropped so violently
@@ericaroundtheworld if you’re buying the leaps AS it’s dropping violently yes. The premium would be higher as IV increases the price of premium. If you were already in before the big move you’d sleep a little better at night. But that’s literally why I don’t play TSLA at all
Let’s not forget that the biggest payouts in the markets don’t come from great performances but rather it’s great promotions. Stay invested, diversification for streams of incomes is very important, I am grateful to Jane Marie Kunak.
When it comes to stocks and investing, most people don't know where to start. Fortunately, great investors of the past and present can provide us with guidance.
investing in cryptocurrencies are the best way forward to build wealth, investing remains a priority. The stock market has many opportunities for decent payouts, with the right skills and the right understanding of how the market works. I pray that anyone who reads this will be successful in life.
And yes! to any novices searching for a good broker out there I strongly recommend my own broker… I don't usually do this, but I have to because I really want everyone to benefit from her good strategies and advices. I’ve been trading with Maya Payson for a year now and everything she taught me and told me are all true. Don’t hesitate or sleep on this….. she is one of the specialties in this trading and investing game and anyone can be successful in trading with her.
@@dannyrose5762 Wow please I would like if you refer me to your personal investment professional. I will also want to know, if while they handles my Investment, is my investment still accessible by me to monitor and authorize any action on the Investment portfolio?
@@angelmiguel133 Your investment portfolio is 100 percent accessible by you alone. Mainly what Mrs. Maya Payson my broker does is create investment decisions for you that will yield a good percentage rate of profits with zero percent risk of losing and invest in it on your behalf. All you need to do is monitor the profits rate, accumulations and withdraw earnings as you wish.
It's called time decay and implied volatility contraction. As time moves forward and stocks climb higher, your long options will lose value as a result of those two things. Of course, they can be offset by a significant move higher in the stock price, but if it's only gradual, then you will still lose money. This is why it's very difficult to profit when buying options...and also why I only sell them.
Just closed out my first covered call at a profit and have another open now along with a put. Never would have been able to do this without your explanations and screenshots. THANK YOU!
Have you ever thought of investing and making much profits more than your expectations? Why not give it a trial investing with Mr Ken Anderson. I have gotten $12300 earlier and I am still expecting to get more per percentage being invested with the help of Mr Ken Anderson.
I was wondering if you think this is a good trade. I sold a $22.00 put for .47 for BBBY. I got assigned and the stock was dropping to $19 and change. I then sold a $22.00 leap call for $725.00. I don’t care if I have to sell my shares for $22.00. Do you think I did good collecting $47.00 and $725.00 in premium or am I missing something?
Not really that seems pretty bad ,your still down $300 on the share and now you have to hold that option for 3 years,you’d be better off selling weeklies or monthlies a 22$ call for one month out is $154 premium or you can sell weeklies for like $30-$40 a week with your and with your long out leap if the stock goes to $100 in the next 3 years your forced to sell at $22 with weeklies and monthlies you can predict it much better and use theta decay to your advantage
I have watched so many videos trying to get an answer to this, I don't understand how options trading equals more profits than stocks. From what I have seen and learned on my own Robinhood account in almost all situations you need the same amount of capital that you would need to buy the stock because robinhood needs collateral or you have to end up buying the stock at the end to "exercise" and realize your "profits". So it seems miss leading to say you can do this with way less money... The only benefit I see is lowering your risk &/or losses. I've done so much math & can't find a single option trade that beats traditional stock trading & i'm not talking about the ROI on the money you "risked" I mean having a bigger ending balance in the same amount of time. Am I missing a piece of the puzzle? Can you offer any clarity or make a video about this?
Awesome video! Quick question: Once the underlying for an ITM call moves past my break-even point, would I make more money by exercising this ITM call, rather than selling it? That is, if the Delta is less than 1? Thanks!
If there is any extrinsic value remaining in the contract, it is pretty much always better to simply sell the contract. Otherwise, if you exercise it, you will forfeit that extrinsic value...basically like lighting some of your profits on fire.
It's been a year and it looks like you lost 100% of your money. But if you just purchased the stock, you'd be up 10%. Or did you sell some of it early?
I love your content so much and your sense of humor. To that, I'm buying a call option for the number of subscribers on exp date the 1st day of 2022 will reach 35k.
One thing I dislike about videos like these is he hyped it up so much like you can make thousands trading options (which you definitely can) but he made those massive returns off of an initial $18,000 investment. It can be done but don’t play all your money away. Take profits earlier than later.
Yup you're right. Only 1 in 1 million will get lucky like this. Not trying to take anything away from this guy, but anyone trying to throw money at OTM options will almost certainly get burned.
Hey, great video, thank you! Just a quick question to make sure I'm wrapping my head around this correctly. Regarding the SPCE LEAP you reference that returned $157K... Was your initial investment for the premium $180? or $18K? Thanks!
Hey! My initial investment was $18k, and I think it's important to note that at the time it was about 5% of my portfolio ( I believe). I think its important with OOTM options to go in with a small percentage of your capital. Thanks for watching!
Hello sir. I really hope you will answer this question for me as I haven’t been able to find anyone who can answer it. I’ll start of by saying the answer is not $10K or anything like that. If I put $4000.00 on Bitcoin in Robinhood and let it sit for 10 years not touching it, how much money would I (potentially have)? You have to factor in the rate of return for Bitcoin and also the potential price of Bitcoin in ten years and that’s where people I have asked seem to get lost. I’d really be interested in your hypothetical answer please 🙏🏾.
You forgot the effect of volatility on options. Buying calls when volatility is high means you are buying an overvalued option. When volatility drops, your option value will decrease quickly and you will be caught in a so-called "volatility crush". Also, buying ITM LEAPS with a delta of 1.0 is not a good choice. The acknowledged sweet spot is a delta of 0.70. It will cost significantly less and its delta will increase toward 1.0 as the stock price increases.
Tell him about theta while you are at it cause the higher the theta the more the loss but it's always very low on theta when doing leaps
less then .5 or close to it delta on swings with less then 30% IV is also great setup
he covers implied volatility effects in other video and includes this, his videos cover all topics
@@tarrandavis2207 he covers all of this in other videos, you can only put so much info in one video per time
Retired with a 7 figure portfolio and Receiving about $43k in dividends. I have been in the Stock market about 20 years. Am I worried? Am I selling? Absolutely not. I have purchased growth stocks too a little at a time over the past few weeks. I am going to sit back and observe how this all plays out, adding more at a time. my investment strategy with my FA actually calms me down. Eye on the prize, stay the course!
hello! a total noob here, your FA if you don't mind can you link me ?
Growing affluence is such a lovely thing to see
sure! she goes by Rita Wildrin Mora, you can search her up to connect with her
Cool, I’m trying to gain and improve myself in the stock market
This is literally the FIRST time I have actually been able to grasp options. I finally feel like I get it! Thank you!
Hello what's the best way to get started with trade cos I've been making my personal research for a while now
@Andian Yisa That is true, you need an expert broker and account manager to make good profit from Bitcoin trade
How can someone know a professional account manager that is trustworthy when legit ones are hard to find this days
@Br. Ben Really you know her? I even thought I'm the only one she has helped walk through the fears and fall of forex trading
@@frederickscott2762 Haha you don't have to be surprised about expert Mrs Laura trading service she's really good and everyone love genuine services, she has helped me recover what I lost trying to trade on my own
Mrs Laura Kathers is a sincere woman who understands the challenges faced by beginners.i started trading bitcoin under her guidance after seeing her interview with CNDH.she does not request for any chargers to teach investors on how to trade and generate profit for themselves .
Man love this guy so much! Every word in every video makes sense and actually works. Cheers bro!
That means a lot! I was always confused when learning options so my number 1 goal is to break everything down into easy to follow steps. Doing my best here :)
found this channel and these videos yesterday and ive become addicted
I LOVE the way you explain options! I appreciate the info! Wish I would of seen this video about a month ago 😪. Lost like $1,200 (house profit money-still hurts though) on a Draft King options call contract 😕 ... ya live & learn. Thanks again for the lesson! 🙂
Thankyou Alex for bothering to state the obvious. It's really reassuring to us newbies & removes much of the fear & uncertainty! Love your videos! Used the selling a put strategy to buy shares cheaper than l thought l could. Next l'll sell a covered call with them & start shopping for my first leap. Really appreciate you! Subscribed!
And leaps are ridiculously expensive, you could sell before for a profit as well. No need to hold until expiration day
You can always reduce the capital requirements of LEAPs by either trading them on much cheaper stocks or by selling shorter-term options against them :)
I look forward to your videos every week!
You explain everything so clearly and have amazing production value too.
Please keep up the great work.
I complete agree. He does a solid job.
Wow, the way this guy explain is really good.
I been searching for some answers for long time. You give me clear answers that I was so confused. Thank you so much 😊🎉
Hey I appreciate your channel thank you so much for the videos the way you explain and talk makes it so much more clear compared to the other videos I have seen please keep making more videos I do have a question though about the short contracts aren't they good when there is like an upcoming Catalyst coming and you know that may drive the stock to go up or down in the short term
Very enjoyable video . I didn’t lose focus one second.
Liked subed looking forward for more videos. Ty again
Much appreciated._For consultation on trading, Investing and proper earning. helpline is shown above. Seen a direct message right away
First, you have to make more videos. We need more information. I love you material man! Second, so your trade cost like $18k did you ever see it loose money in those 3 months if so how much? Third, I think I remember you said you can sell out if you want at any time before expiration is that correct?
@WhatsApp➕①②①⑥②⓪②⑧⑤⓪⑤ no thank you. But I’ll text your mom.
Yup you can always close an options position at any time prior to expiration! :)
Outstanding Commentary!!! Thank You!!!!
What if there is a stock split? Does your strike price stay the same or does it change with the split?
Hey Jose! I literally just uploaded a video about stock splits and exactly how your option positions will be adjusted! Check if out if you're interested...
ua-cam.com/video/hxfF3g9mKrM/v-deo.html
Thank you this is very educational🙏🏽
There are some good points. Buying LEAP Options makes sense to insure his stocks. But to make profit there are a dozen of other strategies that have more benefits.
Some sentences like "I think the price of Aaple will be at" is more gambling than it has to do with trading. Even the best analyst can't predict the price over a long term because there are so many variables
fire info ty for ur great value that you bring to all traders keeep up the great work
Alex so you can buy a LEAP contract in the money 1.5 - 2 yrs out. Then write contracts against it all the way to expiry. Basically the same as a covered call ?
Yup that's the basic structure of the Poor Man's Covered Call...very similar to a regular covered call using stock but requires significantly less capital!
Every financial goal requires 💯patience dedication and consistent spirit knowing that investing is currently the most lucrative business in the world, both NFT, real estate and Crypto shares are really positively changing people's lives, I know the problems for technology believers will end soon.
Simple step-by-step process, excellent communication and response times.The service was extremely streamlined and friendly throughout. Would recommend them to anyone give Sophie Arthur a try.
Sophie Arthur really knows her way around trading, its evident from her deep knowledge of how the market works, reading signals to perfection, l feel very safe trading with her.
There is really no doubt about Sophie Arthur. I have made $15,000 profit with an initial of $5000. She is really good at what she is. I feel safe trading with her. She is top class at what she does.
@@anneliesegeorge1130 Wow😮 How can I reach her?
@@ameliaroy5245 kindly reach her easily through whatsaap 👇👇
Your a Good man. May God Bless you. Mate
came here from watching interview of andrei . thank you
Best video!!! Thank you for explaining options strategies , I learned a lot
I called it that you were feign to stay "seaps" haha!
Can someone answer this? I usually get the nearest otm line. For example with Apple today So if strike was $174.35 and i chose otm $175. I’m trying to understand why not thi method compared to deep in the money?
Dexter, good question! The advantage is delta, but everything in "options world" is give and take. So, the OTM call will cost you less, but will have a lower delta. You are paying less, but the option is not as "potent" as a high delta one. I buy deep ITM (Delta .8 or larger) because I want to exercise the call and capture the delta-minus-one. Also, if you plan on exercising the option, I recommend going with relatively low IV underlyings. That way, you can quickly sell the shares you just bought and feel confident in what you will get paid for them.
Options that are at the money have a lot more extrinsic value than in the money contracts. Their overall prices might be cheaper, but a significantly larger percentage of that price is wasted on that extrinsic value.
heck yeah.. loved your explanation..
If your expiration is at the end of the year and you’re making profit can you sell parts of the contract?
Nope, you have to sell the entire contract.
To obtain financial freedom, one needs to be a business owner, an investor or both generating passive income particularly on a monthly basis... Thank to Mrs Louise O'Brien for helping me achieve this.
wow.. amazing to see others who trade with Mrs Louise O'Brien, i'm currently on my 5th trade with her and my portfolio has grown tremendously.
She's often interacts on Telegrams, using the user-name below.
@INVESTWITHTAMYLOUISE
I have traded with a lot of individuals but I have never come across anyone as good as Mrs Louise O'Brien, just by applying her strategies, I now trade independently. she is the best I'd advise any novice in investing to trade with her
Amazing I also just started trading with her, she is the best at what she does with an initial investment of$1400 i made up to $5230 in just a week of trading with her. her strategies are mind blowing.
When's the best time to sell LEAPS? Let's say the option expires 2 years from now, should you sell with ~2 weeks to expiration or keep holding? This obviously depends on a lot of things but in general when is the optimal time to sell so that you don't get destroyed by time decay?
I would sell way before to lock in profits cuz your gains those last two weeks will likely be minimal
A common approach is to sell the contract at a certain percentage of the initial debit paid. For example, if you bought a LEAP contract for $1,000 and wanted to take profits at 50%, then you would aim to sell the contract once its price reaches $1,500.
wow man i know its late since uploaded, but CONGRATS on that huge win.
Alex, thanks for the video! I hit that like button. I am still a little confused on LEAPS.
If you buy one call option of AAPL (for example), in the money or out of the money options- I can “control” 100 shares while paying a premium.
If the stock price rises over time, how exactly am I making money?
1. Selling the LEAP option back to another investor?
2. Or am I exercising the option, then buying the stock, controlling 100 shares?
So would I need an additional amount to purchase the 100 shares of apple? Or am I just selling the option back?
John
Pretty simple John ! It’s one.
You’re making money on tue premium, by selling back the option to the market once it reaches a higher value than what you bought it for.
take emotions away from investing.
@@chatomeza1
Okay that makes sense.
And the price of the stock would dictate the ‘sale’ price of the option once sold? Which is why the “Greeks” are so important.
@@jbenso128 yes. Just compound percentages until you can afford 100 shares of a desired stock and sell covered calls & puts until you build enough equity on you portfolio to get loans against securities from brokers like fidelity or eameritrade to acquire real state and invest & real businesses. The right people will listen to that.
John, this depends upon your delta, and how deep ITM the call is. So, for example, if you buy a LEAPS that is ITM and the delta is .7, you are able to capture 70% of the gains but only using a fraction of the capital. Importantly, the higher the delta, the more that option will cost. A huge advantage of LEAPS is the low theta, so be patient!
Good Morning, Thank you for the videos and input. Very informative. I am a new investor and would like to get into trading options. I only have $500 in my Robinhood Acct and do not own any shares. I am also on Level 2 on Robinhood's option's so that limits me from several option strategies. I am not able to upgrade to Level 3 yet. With a smaller cash acct, no stocks and being a Level 2 what are a couple of good strategies I could use to trade options. I would appreciate any advice you you could provide. Thank you in advance for your time.
Hey can you make a video on spreads please? Credit and Debit Spread!
Very informative! Thank you ☺️
Hey Alexa,thank you for your videos, you are still my no 1 finance guy on UA-cam, my question is this, I bought a deep in the money leap options of one of the EV charging companies with a delta of 0.9 ,expiration is about 3yrs, good volume and open interest but as the stock price went slightly down( my strike was at $5, stock price was at $11, new price change was $10.50) my premium paid also went down even when the new stock price was still nothing close to my strike price, can you explain why they happened?.
Implied Volatility
@@user-fb8bo3ys2f if that happened .that means if I buy Tesla leaps if it drops to .. 600 then back to 800 I will still be in the loss cuz it dropped so violently
@@ericaroundtheworld if you’re buying the leaps AS it’s dropping violently yes. The premium would be higher as IV increases the price of premium. If you were already in before the big move you’d sleep a little better at night. But that’s literally why I don’t play TSLA at all
Alex - why do you recommend buying Leaps in the money vs Leaps way out of the money? Thnx in advance!
Let’s not forget that the biggest payouts in the markets don’t come from great performances but rather it’s great promotions. Stay invested, diversification for streams of incomes is very important, I am grateful to Jane Marie Kunak.
I did read about Jane Marie Kunak on the web., quite an interesting lady with an amazing track record
When it comes to stocks and investing, most people don't know where to start. Fortunately, great investors of the past and present can provide us with guidance.
Truly Stocks, ETFs and Mutual funds are the best investment decision you can make both short term and long term for steady money flow. Kudos
I googled the lady you mentioned, and after going through her credentials, I can tell she's a pro, I'll be writing her a mail shortly.
Can you get assigned if your deep in the money with a buy call???
Can only get assigned when selling calls, not buying.
Great job friend!
Thanks
But what about if I buy option for one week expiration. But close to earnings report, is a good strategy??
I'm new to options. Why are we concerned about liquidity of the options in the future? Can't we just exercise the options to close?
Do you have any updated videos on How to trade leaps on Robinhood?
investing in cryptocurrencies are the best way forward to build wealth, investing remains a priority. The stock market has many opportunities for decent payouts, with the right skills and the right understanding of how the market works. I pray that anyone who reads this will be successful in life.
And yes! to any novices searching for a good broker out there I strongly recommend my own broker… I don't usually do this, but I have to because I really want everyone to benefit from her good strategies and advices. I’ve been trading with Maya Payson for a year now and everything she taught me and told me are all true. Don’t hesitate or sleep on this….. she is one of the specialties in this trading and investing game and anyone can be successful in trading with her.
I agree with you . Investment is the key to sustaining your financial longevity. And not just any investment but an investment with guaranteed return.
@@dannyrose5762 Wow please I would like if you refer me to your personal investment professional. I will also want to know, if while they handles my Investment, is my investment still accessible by me to monitor and authorize any action on the Investment portfolio?
@@angelmiguel133 I agree with you! Absolutely
@@angelmiguel133 Your investment portfolio is 100 percent accessible by you alone. Mainly what Mrs. Maya Payson my broker does is create investment decisions for you that will yield a good percentage rate of profits with zero percent risk of losing and invest in it on your behalf. All you need to do is monitor the profits rate, accumulations and withdraw earnings as you wish.
Please do a video about closing out contracts and how we can be more nimble in closing out contracts so we do not have to wait until expiration :)
do you train individuals in options trading ?? or where is the best place to learn
Any thoughts on PYPL LEAPS?I was looking out to Sept 2023 $310 strike it has a 25 Delta just don't know when to pull the trigger?
Hopefully you didn’t buy them after what happened today
@@tylersullivan350 No any thoughts on PYPL?
I cant win. Msft went up about 4 pts today. I'm holding 5 call options and still lost money. How does this happen?
It's called time decay and implied volatility contraction. As time moves forward and stocks climb higher, your long options will lose value as a result of those two things. Of course, they can be offset by a significant move higher in the stock price, but if it's only gradual, then you will still lose money. This is why it's very difficult to profit when buying options...and also why I only sell them.
Just closed out my first covered call at a profit and have another open now along with a put. Never would have been able to do this without your explanations and screenshots. THANK YOU!
Have you ever thought of investing and making much profits more than your expectations?
Why not give it a trial investing with Mr Ken Anderson.
I have gotten $12300 earlier and I am still expecting to get more per percentage being invested with the help of Mr Ken Anderson.
That is AWESOME! Love to hear this. You rock, Taylor!
I was wondering if you think this is a good trade. I sold a $22.00 put for .47 for BBBY. I got assigned and the stock was dropping to $19 and change. I then sold a $22.00 leap call for $725.00. I don’t care if I have to sell my shares for $22.00. Do you think I did good collecting $47.00 and $725.00 in premium or am I missing something?
Not really that seems pretty bad ,your still down $300 on the share and now you have to hold that option for 3 years,you’d be better off selling weeklies or monthlies a 22$ call for one month out is $154 premium or you can sell weeklies for like $30-$40 a week with your and with your long out leap if the stock goes to $100 in the next 3 years your forced to sell at $22 with weeklies and monthlies you can predict it much better and use theta decay to your advantage
How many contracts ?
Just one.
Ok, I was hoping to get assigned early. Guess I still have a lot to learn. Thanks for the input.
@@lilipier2995 we’re all learning that’s why we’re here. You’re already ahead of the game.
i dont have enough money for leaps lmao there like in the K's
Might have to find some very cheap stocks or trade call debit spreads instead...there's always a way to adjust a strategy to fit any account size! :)
Anyone know what program he is using in his phone??? For the life of me I can't figure out how to trade options on Tradingview
Robinhood
Can you sell most recent added position instead of always sell your oldest purchase in your position in Robinhood?
What would be a good volume and open interest number?
How do you not hold the contract till expiration how do you close the contract?
hey Alex @pandrea finance , which broker do you use for options trading and why?
tia
I have watched so many videos trying to get an answer to this, I don't understand how options trading equals more profits than stocks. From what I have seen and learned on my own Robinhood account in almost all situations you need the same amount of capital that you would need to buy the stock because robinhood needs collateral or you have to end up buying the stock at the end to "exercise" and realize your "profits". So it seems miss leading to say you can do this with way less money... The only benefit I see is lowering your risk &/or losses. I've done so much math & can't find a single option trade that beats traditional stock trading & i'm not talking about the ROI on the money you "risked" I mean having a bigger ending balance in the same amount of time. Am I missing a piece of the puzzle? Can you offer any clarity or make a video about this?
Market is down a LOT today, good time for leaps?
What were the major keys you looked for when buying leap options?? Thank you
Ty!
hi pandrea!
what is the difference in terms of buying in the money and out of the money leaps? what are the pros and cons ? :)
Itm vs otm in terms of difference is just the price, Greeks and IV.
You are awesome , Thank you.. Liked And Subscribed.
What about theta decay on a 1 year call? How doesn’t it effect you?
Is there a way to close a put sell option on Robinhood before expire date?
If you sell before expection date? Do you lost all your premiums?
So are you looking to actually be assigned the option, or just hold it and sell it for a profit?
What is the minimum volume that is considered good ?
Alex I don't understand how much you paid for the 90 option was it 2.00 an option?
Amazing video.
Deep in the money calls makes the most sense lol am I right?
when buying a call (you have the right too 100 shares)
so when expiration day comes if strike is ITM are we forced to purchase 100 shares?
Awesome video! Quick question: Once the underlying for an ITM call moves past my break-even point, would I make more money by exercising this ITM call, rather than selling it? That is, if the Delta is less than 1? Thanks!
If there is any extrinsic value remaining in the contract, it is pretty much always better to simply sell the contract. Otherwise, if you exercise it, you will forfeit that extrinsic value...basically like lighting some of your profits on fire.
Very handle on
Do you have a paid course? How do we signup for it?
Really interesting video with tons of info on leaps. Really helpful!
Have you donde that video yet for the selling leaps?
This is such great channel, looks you stoped? Thank for sharing
Nice video. Your PD is larger than normal :p iykyk.
It's been a year and it looks like you lost 100% of your money. But if you just purchased the stock, you'd be up 10%. Or did you sell some of it early?
JUST LIKED & SUBSCRIBED
Your videos are becoming better with text :))
Text my broker☝️for assistance and guidance
Do you have a link to your selling LEAPS video?
Thanks 😊
Much appreciated._For consultation on trading, Investing and proper earning. helpline is shown above. Send. a direct message right away
Your Nov 15th video shows a balance of $1.871,675 while this one shows a balance of $1.712,243. What happened to $150,000 ??
Don’t you remember the massive red two weeks?
How do you start option trading when you have little cash and only a few shares ??
Hey what camera/mic do you use?
How do you find a good leap
I love your content so much and your sense of humor. To that, I'm buying a call option for the number of subscribers on exp date the 1st day of 2022 will reach 35k.
Iam like you can iam soping small things like
Could you do rolling covered calls in a future video??
You look exactly the same as that Alex magician ! He also has a youtube channel called Alex Pandrea
Just watched a 5 min ad I thought was the video. Wtf
One thing I dislike about videos like these is he hyped it up so much like you can make thousands trading options (which you definitely can) but he made those massive returns off of an initial $18,000 investment. It can be done but don’t play all your money away. Take profits earlier than later.
Yup you're right. Only 1 in 1 million will get lucky like this. Not trying to take anything away from this guy, but anyone trying to throw money at OTM options will almost certainly get burned.
Hey, great video, thank you! Just a quick question to make sure I'm wrapping my head around this correctly.
Regarding the SPCE LEAP you reference that returned $157K... Was your initial investment for the premium $180? or $18K?
Thanks!
Hey! My initial investment was $18k, and I think it's important to note that at the time it was about 5% of my portfolio ( I believe). I think its important with OOTM options to go in with a small percentage of your capital. Thanks for watching!
@@PandreaMoney Cool, thanks for clarifying. :)
Hello sir. I really hope you will answer this question for me as I haven’t been able to find anyone who can answer it. I’ll start of by saying the answer is not $10K or anything like that. If I put $4000.00 on Bitcoin in Robinhood and let it sit for 10 years not touching it, how much money would I (potentially have)? You have to factor in the rate of return for Bitcoin and also the potential price of Bitcoin in ten years and that’s where people I have asked seem to get lost. I’d really be interested in your hypothetical answer please 🙏🏾.
As always enjoy the content and “jokes”. They are so bad as buying OTM weekly options 😀
Haha I do my best to make the jokes as bad and yet as good as I can :))
Great video
Do I need to wait until expiration if I am selling a call or a put?
No
Wish he would show live trading results