Introduction to Options (Week 1 of 12) | Getting Started with Options
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- Опубліковано 21 сер 2024
- Getting Started with Options | 11-7-23
Characteristics and Risks of Standardized Options. bit.ly/2v9tH6D
You’ve heard about options in the past. What are the risks associated with trading options? What are call options and put options? Join this episode to learn why traders and investors might use options and to review the option basics: option terminology, rights and obligations associated with buying or selling options, and a brief introduction to the option greeks.
0923-3HLH
Options involve risks and are not suitable for all investors. Please read the Characteristics and Risks of Standardized Options carefully before trading.
To follow Barb Armstrong on X: @BarbArmstrongCS
Here's the link to the new Schwab coaching calendar: : www.schwab.com...
Link to the Trader Talks Webcasts from Schwab Coaching on youtube: www.youtube.co...
#BarbArmstrong #TraderTalks #SchwabCoaching
Great Content
Thank you. I'm so glad you found it helpful. ^Barb
Finally someone that I can understand when they try to explain Options. Thank you so much. I plan to look at and study all of the webcasts in this series. I have been a Schwab client for over 20 years and I was trying to learn to trade on TOS when at TD Ameritrade. With Barbara's great instruction and other coaching webinars from Schwab, I might finally be able to accomplish my dream of trading.
Thank you so much for the positive feedback. We are all here to help and cheer you on! ^Barb
Boy the new version is quite different from the previous. Great lesson thank you.
I'm glad you found it helpful. I do try and present things in different ways. ^Barb
I started watching your options webcasts in TDA. I'm thrilled that Schwab is keeping you on as a coach. I'm starting over with your getting started with option series as I try to put the option lessons together with using Think Or Swim. It's a LOT! Thanks for your patience!!
In the beginning, it IS like 'drinking out of a firehose' isn't it! Keep coming back. It gets easier and as you go through the series again, for most, it makes more and more sense. ^Barb
Great...very helpful. Looking forward to watching the entire series. Second time watching this one......(for the chart!!) Great instructor...thanks.
Glad it was helpful! ^Barb
Barbara, thank you for breaking down options trading in such a clear and understandable way. Your analogies with buying a call and buying a put using the envelope grid really helped me visualize the concepts. Looking forward to learning more in your upcoming sessions!
Glad it was helpful! Here is the link to the entire series: ua-cam.com/play/PL8a6s5nq1lPRcGlhhMLSqx1BK1rttI00R.html&si=Mnj81dNZBwdXL_0v ^Barb
Thanks for the time to explain things better. I go to school and other students tend to speak over the teacher and I missed important information. We your videos I was able to understand further about Options.
Glad it was helpful! Here's the link to the entire Getting Started with Options series: ua-cam.com/play/PL8a6s5nq1lPRcGlhhMLSqx1BK1rttI00R.html&si=qWwOHk3PZlLjnaoB ^Barb
Great instructor and course too. Learning everyday from these sessions.
Happy to hear that you are finding them helpful! ^Barb
starting over in options and I start with the best in this
Way to go! The potential for binge learning! I hope you find this series helpful. ^Barb
Thank You Barbara.
You're welcome!
great review
Thank you. ^Barb
Very useful. I am following your course at my own pace.
Excellent! Here is the link to the Introduction to Options playlist: ua-cam.com/play/PL8a6s5nq1lPRcGlhhMLSqx1BK1rttI00R.html&si=3RsHC8ydjZ4essI3 Enjoy! ^Barb
thank you for your explenations so far. I look forward to watching the rest of your videos as time allots
Glad you like them! ^Barb
good1
Thanks. Looks like you are 'binge' watching the series. Way to go! ^Barb
Thanks for the class Barbara. Brand new to options. I only trade (buy) stocks so this will be interesting to at least learn. Might never actually use this option though but good to know as much as you can learn.
Glad it was helpful! Here is the link to the entire Getting Started with Options webcast series: ua-cam.com/play/PL8a6s5nq1lPRcGlhhMLSqx1BK1rttI00R.html&si=PE0IRmfVoQ_2jtZ5 Binge learning! You are also welcome to join us live on Tuesdays at noon ET. ^Barb
Barb, Thank you ever so much for your teaching the "Option" game. I have watched 7 of your webcasts and am starting from the beginning again
You are so welcome! Keep coming back. There are some who have gone through this entire Getting Started with Options series several times. In the beginning, it can be a bit overwhelming, but each time you go through it, you are approaching the series with a greater understanding and can put up more of the nuances! ^Barb
Great content as always, Barb!
Thanks so much!
Dear Barbara,
thank you so much for this amazing styl to teach, I realy love it.
I am from Germany and customer of Charles Schwab. For me is also interesting to understand the language- and your "melody" in it, is very easy to follow!
Now, I did not understand why, if I sell a call, the risc could be UNLIMITED?
Maybe is a stupid question, but I have to clear it🙂
Thank you
Elena
If a trader sells a call at a $50 strike for example , they are obligating themselves to sell 100 shares of stock at $50/sh if requested (ie. if they are 'called out) at any time from when the trade is placed until expiration. If the stock gapped up to $75 for example, the trader would have to buy the stock at $75 and turn around and sell it at $50 to meet the obligation. Since there is no limit to how high a stock can theoretically trade, selling a call has unlimited risk. ^Barb
Thank you always for taking time explaining the information. You are a wonderful coach. I’ve learned a lot from watching the programs daily. Can you or do you have a class on how to build a checklist for option trading?
A great question. I'll be creating a series of Mini Sessions where we will create one example trading plan per session. From those example trading plans, a sample checklist could be created. Look for the first one in the series
this week. Here's the link to the Mini Session Playlist where they will be posted: ua-cam.com/play/PL8a6s5nq1lPTEQmYbc6yEslQvWdqsu0N-.html&si=LR5Q_DAhHtDzqL78. ^Barb
I finally found you!
So glad you did. Here is the link to the Getting Started with Options series: ua-cam.com/play/PL8a6s5nq1lPRcGlhhMLSqx1BK1rttI00R.html&si=5mPu-r7WHlTYI2nr . You'll want to subscribe to the Trader Talks Webcasts from Schwab Coaching channel on youTube as well. ^Barb
10- grade.... great video
Glad you enjoyed it! Here is the link to the Getting Started with Options playlist: ua-cam.com/play/PL8a6s5nq1lPRcGlhhMLSqx1BK1rttI00R.html&si=rVnXjkXKDb1wQcGG ^Barb
Barbara you are fantastic. i have watched many of your videos and have a lot to go. I do have a lot of questions and hope to not wear you out.... But any question i have could be one that many others have and i will try to keep them subject oriented so as not to confuse anyone with a question unrelated to the particular video you are doing today.
Wonderful! All questions are welcome! ^Barb
Do you have a video explaining the different columns available, the % on the expirations next to the expected move, etc, thanks!
There is a Mini Session that I recorded on the thinkorswim Desktop Platform: Options Chain. I show how to customize the Option Chain. I don't know that I included the Prob. ITM and Prob Touching but I do demonstrate how to add a column. Here's the link: ua-cam.com/video/9KRJ75mRUVc/v-deo.htmlsi=C9vhD3JJGsMdVqVf. Hope you find it helpful. ^Barb
Hi Barb. Thanks for your wonderful presentation. I remember in TD Ameritrade channel you have shown the bullish or bearish sentiment of all the sectors which were available in their platform. Can you please tell us where to find it in CS?
I think you are referring to the Market Monitor on the TD Ameritrade website. To my knowledge Schwab does not yet have a similar feature on their website. ^Barb
The grid helps.
Thanks. I appreciate the feedback. Drawing out that grid certainly would have helped me when I was starting out! ^Barb
Just Reviewing
A great idea to go back and review the basics as your skill levels continue to grow! ^Barb
QUESTION: if you do a custom OCO can you simply change that any time or must you rewrite the trade again.. and close first. For example I want to change the Stop. Is this a simple or complex task.
I don't demonstrate the use custom OCO orders, I just place an example target and/or exit as the trade is placed. It is my understanding the you can change a custom OCO order once you bring it up if necessary. You might want to call the Trade Desk for more detail on custom orders. ^Barb
What made you choose a 50 strike and what expiration would you normally select?
The 50 strike on stock XYZ was selected assuming the stock was trading just below that. You will notice that when I did an example trade on AAPL later in the class, we selected a strike close to where it was currently trading. An expiration 20-50 days out if often used as well for a shorter term long options strategy. ^Barb
Thanks! So the calls 20 to 50 days would also be at the same strike? Or would you select a few dollars under the itm calls? I'm having trouble with selecting longer calls. @tradertalkswebcasts
Also, where are the rest of your 12 weeks options videos?
My notes on this class back in the TD days shows, you'd do a top-down trend search, starting from the market, then sector, industry and finally the stocks. Since I no longer have access to the excellent TD website and those tools, can you help the still shaking transplants like me on how to do this now? Many thanks.
Hmmm. One of the ways you can do that is to bring up the S&P500 Sector Indices watchlist (which I do all the time in my webcasts) and determine which are the strongest sectors. You could go in then and create a simple scan where you 'scan in' S&P500 stocks and have it 'Intersect with: Information Technology' Stocks. That would create a list of all the stocks currently in the Tech sector which are part of the S&P500 for example. I'll create a Mini Session on how to do that. Thanks for the suggestion. ^Barb
@@tradertalkswebcasts Great idea Barb. I know just how to do that.
It's so great what you do. I'm always so impressed
@@tradertalkswebcasts Can you put the link here please...?
I just started looking at this and I'm enjoying every minute of it! I do follow you on X
Yay! Thank you! So glad you found this series. ^Barb
new
Welcome!! ^Barb
Wouldn't this demonstration be easier understood if you had grouped ( BUY A CALL/ SELL A CALL) ( BUY A PUT/SELL A PUT) instead of, ( BUY A CALL/ BUY A PUT) (SELL A CALL/SELL A PUT)?
That is how I used to group them. I would first discuss Calls and then discuss Puts. I approached it differently this time just to 'change it up'. It does make sense it that buying a call and buying a put have a lot of similarities. Selling calls and selling puts have a lot of similarities as well. ^Barb
@@tradertalkswebcasts Thank you for replying. I understand.
Can we work with Think or Swim on a smartphone?
Absolutely. ^Barb
Well, if we're paying about $8 to get in if it loses 50% of its value snot going kind of in the right direction. Teehee. Gotta love transcripts.
Linda. I agree. The transcripts can be entertaining.
What is a naked call and covered call? Too many rules for me. I hate rules.
A naked call occurs when a trader sells a call when they do not own shares of the stock. When a call is sold, it creates an obligation to sell the stock at the strike if the option is exercised. A covered call is a call that is sold (generally 1 contract per 100 shares of stock) when the trader has shares of stock that the call is 'covering'. ^Barb
Hi Barb, I want to add script LIYKYc3 to my chart but I could not do it with instruction you post. Can you post a step to step instruction? Thankyou
I just found out that I have to use the main screen to import script, it can not do it on a detach chart screen. Will check later if it works
Yes, if you import the script from the main screen it should work. ^Barb
newbie
Welcome. I hope you found this first webcast in the Getting Started with Options series helpful. Here's the link to the entire series: ua-cam.com/play/PL8a6s5nq1lPRcGlhhMLSqx1BK1rttI00R.html&si=0CdKW80nFGadfi1Z ^barb