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Options Trading for Beginners (The ULTIMATE In-Depth Guide)

projectfinance

Mon. May. 25, 2020 12:52pm

Options trading is a very difficult thing to learn as a beginner, as there are many moving parts and many concepts to learn simultaneously. In this video, my goal is to bring you from zero to hero in a few hours, even if you don't know anything about trading options.

We are going to explore the world of options through many examples and graphical illustrations, and explanations simplified as much as possible. My goal for this video is to provide you with an overview of the biggest options trading ideas and get you to a point where you understand the concepts intuitively, and not just things you've memorized.

=== tastyworks Course Offer ===

Get one projectoption course for free when you open and fund your first tastyworks brokerage account with $2,000 or more: https://www.projectoption.com/free-options-trading-course/

Learn More About tastyworks: https://www.projectoption.com/tastyworks/

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In this video, we will advance through the following sections:

0:00 - Introduction
0:50 - Basic Option Characteristics (Expiration, Strike Price, Contract Multiplier)
3:31 - Call Option Introduction
4:47 - Basic Call Option Example (With a House)
10:13 - TSLA Call Option Example
15:43 - Do You Have to Exercise an Option to Make a Profit?
23:42 - What We've Learned About Call Options
27:19 - Losing Money Buying Calls
27:52 - ADBE Call Option Example
31:57 - Put Option Introduction
33:35 - IWM Put Option Example
40:47 - Losing Money Buying Puts
42:00 - NVDA Put Option Example
45:35 - Buying Puts vs. Shorting Stock
48:47 - Option Price Components (Intrinsic & Extrinsic Value)
53:27 - Extrinsic/Time Value Explained
58:50 - Extrinsic Value Comparison Using AAPL Options
1:05:21 - In-the-Money (ITM), Out-of-the-Money (OTM), At-the-Money (ATM)
1:07:13 - Introduction to Shorting Options
1:09:06 - IWM Short Call Option Example
1:14:00 - NFLX Short Call Example (Big Loss)
1:18:26 - Short Call Breakeven Price Explanation + Illustration
1:21:12 - Shorting Put Options Introduction
1:22:15 - ATVI Short Put Example
1:28:00 - Thoughts on Holding Short Options Through Expiration
1:30:12 - Implied Volatility Introduction
1:41:54 - Visualizing a Change in Implied Volatility
1:49:20 - More on Exercise & Assignment
1:53:04 - Expiration and Automatic Exercise/Assignment
1:54:44 - Why Options Are Rarely Exercised Before Expiration (Quick Example)
1:58:02 - Which Options to Trade? Consider Liquidity (Volume/Open Interest)
1:59:35 - Example Stocks/Products With Great Option Markets
2:01:49 - tastyworks Offer - Get a Free projectoption Course
2:02:45 - tastyworks Trading Platform Demonstration (Buying & Shorting Calls/Puts, Analyzing Volume/Open Interest, Trade Execution Best Practices, Bid/Ask Spread, Using Limit Orders)

I really hope you enjoyed this video and learned a ton. I put a lot of effort into this video and my goal is to clear up a lot of the confusion around options trading, particularly for beginner traders.

It's not a perfect video, and we didn't talk about everything, but we walked through the biggest options trading ideas. For additional information, please check out the videos linked below!

Feel free to leave a comment if you have any questions, or just want to say hello.

Options Trading for Beginners (PDF DOWNLOAD w/ Slides & Additional Info): https://www.dropbox.com/s/dzeq2gko4glrd5r/options_for_beginners.pdf?dl=0

@Chris Butler

=== RECOMMENDED VIDEOS/RESOURCES ===

Call Options 101: https://youtu.be/fUZHmJAvN30

Put Options 101: https://youtu.be/oXQ1b0rA0r4

Implied Volatility Explained: https://youtu.be/H-NHZq-skFo

Vertical Spreads (The Ultimate Guide): https://youtu.be/mwttDWfDQ9c

The Option Greeks: https://www.youtube.com/playlist?list=PL33AZa4cv-o7muM0tB8TSAJ4qsBU4cr6F

Why Options Are RARELY Exercised Before Expiration: https://youtu.be/PsZsqiBFnmo

How to Buy a Stock: https://youtu.be/5yTm1YkbccM

How to Short a Stock: https://youtu.be/eWzdJoEBQDw

My More General Finance/Investing Channel: https://www.youtube.com/channel/UCQIPHXnm7ODW0HAdfCr1yDw?sub_confirmation=1

Options Trading For Beginners (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo

tastyworks Tutorials (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o56a2BO3jpK_PBUFe3FdvxP