The MOST Important OPTION TRADING Factor (For Profit!)
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- Опубліковано 11 вер 2024
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My Stock Portfolio & Options Tracker: / pandreafinance
How to use implied volatility to make money trading options. Options for beginners - it's important to understand how implied volatility works and how it affects your option price. Once you understand this you can better determine how to make option trades, and what will bring you profit, and what will lose you money (..so you can not do that lol).
it is a pity you don't make videos anymore, one of the best channels on UA-cam explaining options
Guess u can just watch them all lol
so true
Back baby
Possibly the best "teacher" I've ever experienced.
A true master of explaining complex topics in a easy to understand way. Great examples.
I realized that the secret to making a million is saving for a better investment. I always tell myself you don't need that new Maserati or that vacation just yet. That mindset helped me make more money investing. For example last year I invested 80k in stocks (with the help of my Financial Advisor of course) and made about 246k, but guess what? I put it all back and traded with her again and now I'm rounding up close to a million.
The pandemic came and taught everyone the importance of having multiple stream of income, unfortunately having a nice paying job doesn't mean you are financial secured anymore. So we all need to put in an extra-income earning chance, like investments.
@@miralucian5571 I agree with you, Covid taught us the importance of having a plan "B" income. You are not safe with just one paying job, when nobody knows what will happen next. Look at what happened to so many of u...
Job will pay your bills, business will make you rich but investment makes and keep you wealthy, the future is inevitable 💵
@@SimonKelly7836 What is your advice for a new beginner like myself, I have been trying to practice using a demo accounts, but I am scared that I don't know enough to start trading all by myself. What to do next.
@@Maricel_oronan Be careful not to jump into trading without any proper training because it can be very detrimental. Many folks jump into trading only to suffer great loss at the very beginning. Do not try to imitate a professional traders, better still ask questions. Get the services of a professional stock expert or a licensed broker.
I think every video you do should have an example. This is really hard to digest and I need to rewatch it over and over again.
Feel free to check out my new options trading channel as well...almost all my videos include charts and visuals in my explanations :)
Another great informative video ! Really appreciate what your doing :)
So how do you know implied volatility is high? Is there a way to see past implied volatility on a daily chart?
Hopefully your trading platform offers you the ability to look at a historical implied volatility chart for a given stock. Then you can simply assess visually if the current IV is high or low based on the past.
use vwap indicator
Thank you Alex! Great explanation!
Thanks man I have learned a lot from your videos 😊
these videos are gold
best explanations I've ever come across
can you make a video on trading earnings with options?
I'll be putting out some videos on this very topic for this upcoming week :)
So how do I find out if it is relatively high or relatively low?
🤔
Hopefully your trading platform offers you the ability to look at a historical implied volatility chart for a given stock. Then you can simply assess visually if the current IV is high or low based on the past.
use vwap indicator
where we can see the IV?
Excellent video bud. Options are incredibly challenging to learn, but worth it. Thank you for your efforts, and always making it fun to watch. I'm going to study up more on how to read IV now.
The point is vola is low when markets are complacent, flooded by money e.g.. In such cases valuations are also high which for a contraraian investor (buy low) is something that could be a holdback. What do you think?
What’s a good amount to start with? What type of options trading should I start with first?
In my opinion, it's best to start with defined-risk strategies like credit spreads, debit spreads, and iron condors. Once you gain more confidence and experience, you can attempt more risky strategies like selling cash-secured puts, covered calls, strangles, etc.
I love you man... I love your videos... You've been a great inspiration for me. I really don't like the format though... I miss it when you used to joke more and prep better for the video...
I'm saying this out of love. I have a lot of respect for you and wish you all the best
Probably losing interest of speaking about the intricacies of options. It’s truly boring stuff. But necessary to understand how to utilize them properly
So that's good explanation basically easy to understand. But How do you go about doing a vertical spread? Do you use the Put bear spread, Call bear spread? and use it in the credit/debit spread? I can see using it on a stand alone buying or selling option. Maybe you can do another episode explaining on using volatility on doing the four type of vertical spreads? That would be helpful! It would be nice if you can have sample scenarios. A picture/photo is a lot better than a thousand words.
keep it up this is a great video. thanks for the info
How many investments apps do you use and should you spread your money out among them? There are dozens of apps that do all sorts of things so i just want to get your take on how many is too many and if you suggest certain ones over others or certain ones for certain activities or goals
In my view, I think it's best to do all your trading/investing with a single broker and app. Far more simple that way, especially since most trading and investing apps are very similar nowadays.
I have leaps options that down 80%. I don’t know what to do. Should I close it now? Please help!
Thanks Alex, but I don't understand. So does the VIX only matter at the time of the trade or does it play a continuing factor as you hold the option? I have successfully sold puts on GOLD with VIX around 30-40. Seems like once the option is purchased the deal is sealed. Obviously, I'm still learning.
Both. Knowing the VIX at the time of the trade can help maximize premium.
Knowing the VIX as you hold can help you know if it’s a good time to close or buy back your options to secure a larger portion of your premium.
Side note: yes the deal is sealed once the option is purchased but you can always close the option prior to expiration if you want to avoid getting assigned or want to secure profit
I’m of
Delim75 VlA Te le gr am.....📧✅🇱🇷
....
This current dip is a huge opportunity to buy the dip and also higher volatility to yield more profit for day traders.
This recent Cryptocurrency Crash Is a Once in a Lifetime Opportunity To Be a Dollar Millionaire.
youtube and its bots man, fucking trash.
@@gracehicks876 This is the kind of information that we don't get from most UA-camrs I will get in touch with him right now👍
Can you sell put before the closing date?
I uses Moomoo & Tiger SG for charts mainly. But they shows current IV for option only, didn’t show any IV chart I thought. Don’t know where to tracks high & low? High & low prices could be seen only. Unless we photo everyday for a specified Option card. Any recommendation for IV tracking?
What is considered High and Low implied volatility?
Hello Alex, I am buying calls and puts. Should I exercise my contracts, when the bidding price is really low?
Unless you're at expiration, you should just sell your contracts. Exercising early will cause you to lose a lot of your profits.
@@scottreesetradinginvesting7936, thanks for the information. I will subscribe to your channel.
@@williammorales6142 Sure thing! And thanks for the sub, I appreciate it! :)
great video!
When is volatility high and low what percentage?
When you say Buy Options & Sell Options, I'm confused if it refers to Calls, Puts or both.
check out Pandrea's channel, he has videos that explain buying/selling Calls and buying/selling Puts
Buy options (Buy Calls and Buy Puts) and Sell Options ( Sell Calls and Sell Puts). its just general wording that you can either Buy or sell Options.
What’ll really spin your head around is that selling a Put equates to agreeing to buy 100 shares of a stock while selling a Call obligates you to sell 100 shares and buying either one of those gives you the right to do the opposite. 🤪
Don’t worry, you can figure it out, you just need to keep trying to understand options and watching videos and it will eventually start to make sense. Options are confusing for everyone at first. It might help you to know that NO ONE understood options when they were first invented. It took a couple of analysts finally creating a formula for the price of an option for people to finally understand how they even worked or how to calculate them. It’s kind of crazy. All this stuff about the Greeks? Yeah, nobody understood any of it back when it all started.
Buying options refers to buying either calls or puts....same for selling options.
Where do we see the mean and average of the IV? I’m using TD. Thanks 🙏
use vwap indicator
@@ErikaMartinez-vf7yo okay thanks! Will try it out
8:00
Nice
Keep your annoying ads to yourself....jk Good info.
You lost me......
As usual
Bro you loosin it. More graphic please and pinch of yo silly jokes would be great
Thanks. These videos really help me.