What are Stock Options? A basic and easily understood review of Options!

[aiynaiy]

You are the MAN Carlyle...

[StockMarketFunding]

Nice video, we teach people how options really work and how "options market makers" steal from the retail options traders! 70% of all options traders lose money and are victums

[moarscooby]

Well done sir. Are you a CPA?

[FIXProtocol]

@moarscooby No, I'm on the tech side.

[RayRaydontPlay]

So my question is who is the one that sets up the premium prices? How can you become that person that sets up those prices? Do I purchase...hypothetically...10­00 shares and then enroll in options for that stock, setting up premium prices and hope someone buys them?

[xteric1]

I have $8000 worth in stock options for a company I work...does that mean I need to have $8000 to buy the stocks??

[Nogert]

I don't understand, does this not just mean I can say to a company, hey I will buy 500 shares in your company in 2 weeks for 1p, regardless of how much the share is worth..

[FIXProtocol]

@Nogert No, you both have to agree on the price. Imagine I thought that we are about to come out of this financial crisis in a few months. I expect prices on financial stocks will go up rapidly and by a large degree. You may have shares on a financial entity like Morgan Stanly. You lost a lot of money and think things are going to get worst. That is the heart of any transaction on Wall Street. We disagree on potential value. You sell me a contract with a stock price slightly above market.>>>

[FIXProtocol]

@FIXProtocol If I'm right, and the market rebounds, then you are in trouble. You HAVE to sell me your shares at a price that may now be potentially well under market price. You however think that it is YOU who is correct in your predictions. If that is the case, then prices will go down even further, rendering the contract useless. However, remember...you SOLD me the contract, so you made a profit on betting that you were right about the market going down further and being right.

[kanjimanji]

great video!

[FIXProtocol]

@kanjimanji Thanks!

[ferdous82]

I actually get it...awesome explanation

[FIXProtocol]

@ferdous82 Thanks!

[choicecash]

"Hey! I got these bananas! I got this 25 cent coupon!" Hilarious!

[zaqo12]

I have a question. Lets suppose we have a stock, XYZ at 30$ a share. Now i take out a with a strike at 31 with a 1.00 premium , so i pay 100 dollars, if the stock then declines to 29 from 30 what is the resale premium of the option, does option premium go to 0 or is it percent based?

[2pacalypse2010]

@zaqo12 that is a good question, and if anyone answers, please tagg my sn in so i can read it as well!! good day yt

[Woutchitsou]

The person selling the contract to you is usually not an idiot, he wont sell it if he thinks the price of the stock will go up, bottom line is allwais that you got to know what you are doing better then the person you are contracting with.

[FIXProtocol]

@Woutchitsou Yeah, that is the trick to it. I guess it's a little like poker in a way. The writer thinks his contract is a better hand for him, while purchaser of the contract is hoping he has the better hand. Only one can be right thought of course! :)

[2pacalypse2010]

@FIXProtocol hello, nvm mind my screen name, i am very intrested in trading, and i wish 2 establish contact with fellow traders, and watching this video gives me an idea! if options is similar to poker, then if a person is selling A "PUT" option, then wouldent it be wise to turn around and buy it in common stock? since their prob selling the "put" because its going UP? just asking,still a lil confused

[grbreaux]

I love this video!! This explains it all!



[FIXProtocol]

@grbreaux Thank you sir! There is however a lot more to Options than can be covered here. Some stuff may leave your head spinning for days and I'm not sure if even I can simplify some of it. What we have here however is all the fundamentals you need to understand how it works. For many, that is all they need, for others, this is just the beginning of a long journey!

[grbreaux]

I love this video!! This explains it all!

[donrondadon]

I actually get it now - I hope you have a series of these =D

[FIXProtocol]

@donrondadon I'm doing some UNIX videos first, but yes, I plan on doing some more options videos. Did you see Options Greeks video already? I'm going to expand on that to cover Rho and others.

[puffyheaven]

keep up the good work!

[FIXProtocol]

@puffyheaven Thanks! Happy New Year!

[FIXProtocol]

@eatandtravel Thank you!

[ultimatepingpong]

absolutely amazing thank you so much you are truly great with words

[FIXProtocol]

@ultimatepingpong And my father used to complain so much that I "talk to much"! Little did he know...lol :)

[YLU1000]

thanks alot . . if you graphically do it , so it would be very nice ..

[johnmeye]

Thank you. You explain WHAT an option is better than any other YouTube.

[FIXProtocol]

@johnmeye Thank you sir! :)

[FIXProtocol]

Hey folks! I'm VERY happy that this video has been so much help to so many people, but is it THAT much better than anything I have done? I feel like a 1 hit wonder. The gap between this video and my others is astronomical! :)

[CardinalRaker]

I like the explanation, I just finished watching BBC The Midas Touch about Black-Scholes. Seems like it's all really just gambling

[FIXProtocol]

@CardinalRaker Thanks you. It is like gambling in a way, but if done correctly with adequate research and planning it can be a bit more. Never invest more than you are willing too loose in the market! :)

[rhapsodyrhapsody]

this is fucking awesome. you explained it really well. but how much are those premiums? and how long, or how short of a time period can you set your contract for??

[ceeslimm]

Thanks man! I really appreciate the knowledge that you are sharing bruh! Very easy to understand.

[FIXProtocol]

@ceeslimm You are welcome! Thanks for watching! Don't forget to subscribe. It's free. :)

[5635Bobby]

Money as debt what else...

[DCStream]

This FINALLY helped me to understand options.

Now all I need is help reading that damn table. I should probably just stick to long-term trading.

[FIXProtocol]

@DCStream Long term is the way to go! Well for me anyway. Less risk.

[tbaarr1]

@DCStream check my vid

[iStalkApple]

I always got coupons for free. I do not remember buying them..What is happening with this country or is it me?

[FIXProtocol]

@iStalkApple Times are tough now. A CT supermarket was CHARGING for plastic bags!! Airlines are charging for luggage that was previously free.... :(

[soojenite]

@FIXProtocol no even toilet uses are for sale now, to get a confirmation as a message on your cell phone you have to pay for it here in europe, but on the other hand some people are making big dollars, i made big money in 2009 when everything was even tougher, but now its kind slow, i mean real slow.

[sxr951]

is it best to learn all the diff aspects of options and then just use charts to trade them or best to go with a option call service that tells when and what to buy.and he does all the research. they all have a 75 % win rate so they do seem pretty good.

[FIXProtocol]

@sxr951 That is a better question for an active options trader. Hopefully one of my subscribers can help. Good luck!

P.S. Personally I prefer to do my own research. Too much conflict of interest.

[sxr951]

thx

[FIXProtocol]

@sxr951 You are welcome!

[Amritanash1]

Excellent! 

[FIXProtocol]

@Amritanash1 Thank you night owl!

[Lavenderrose73]

...I think I'll share this video with her too, and possibly your other ones and maybe I'LL start to understand how to correctly buy an option without shooting myself in the foot. I may have done that buying a Starbucks put option and now don't even know if I'm in the money or out of it but at least it was only done with a paper trade. Lol

[Lavenderrose73]

I like how you put it into Non-Market terms. My best friend is supposed to come over Sunday so I can share with her the notes I'd gotten from this 3 day workshop she was supposed to be a free guest at but an emergency came up and she couldn't. Since she was authrorized to take part in the information I'll just do what I can to catch her up. Anyway, I'm still trying to understand what I'm looking at with the bid/ask prices (I'm seeing things like $1.52 or whatever and not understanding it).

[FIXProtocol]

@Lavenderrose73 Think of it like Ebay. Ebay is very similar in many ways to the market. The bid is set by the highest bidder. The highest bidder is willing to pay the most for the item. The ask or offer is what people are expecting to get for their items. "Buy it now" is like an offer or ask.

[papakwaw]

Before i say this Joke i am Black so ...... hey it's funny but ; ( Don't Monkeys always like talking about Bannana's ; )  " throw em on the couch "

[gogh2006]

nice; thanks for posting : )

[FIXProtocol]

@gogh2006 No problem. Thanks for the kind words.

[ixXchaseXxi]

hey, thanks for the video it's better than the others out there, once i pay the premium for the option to trade at the given price, is there a limit (minimum or maximum) on the amount of shares i can buy?

[FIXProtocol]

@ixXchaseXxi I do not believe so. Only thing to consider would be the terms of your account. Your account may have limits, but that is unique to your account.

[FIXProtocol]

@eatandtravel Thank you!

[peaceguyz78]

Great job! Best in youtube so far!

[FIXProtocol]

@peaceguyz78 Thank you! I'm flattered! :)

[db8cptn]

Great video. One thing though I still don't get- if I don't want to buy the $5 IBM stock and I let the option expire, what happens to the stock?

[FIXProtocol]

@db8cptn Nothing. If you don't use the contract, then nothing happens exept you loose the ability to trade or use the contract. Thanks ofr watching!

[withoutajem]

EXCELLENT video but i still have a few questions. I am a beginner investor and want to start off buy buying and selling short term calls. I have $500 bucks to do this with so obviously i do not have enough to excersize my contracts. So lets say i bought 10 contracts and each option is $.20 that means the "premium" is $200. Right around when the option expires because i guessed the market right, the option that i own went up to $1.20 that means i gained $1000 correct? Thanks for the help.

[bradleydman]

thanks for explaining options.... i've watched other videos and i didn't understand it.

[FIXProtocol]

@bradleydman That is great to hear!

[karthikganeshbabu]

Thank You

[FIXProtocol]

@karthikganeshbabu You are most welcome!

[Eshareholder1]

Great Vid! We'll be starting a new community for investors in the next week, please check us out at E-Share Holder!

[sixfilthyboss]

Very simple and informative!! best explanation ive found to date!

[FIXProtocol]

@sixfilthyboss Thank you sir! Hope you are enjoying the great weather! :)

[keyequityhedge]

Great job, very well done and will help new traders

[FIXProtocol]

@keyequityhedge Thank you sir! Great stuff on your page too by the way. Nice!

[andpreson]

Thanks, very clear. keep up the good work. :)

[capixie]

Thank you! I'm studying this in my business class and couldn't understand it the way the professor was explaining it.

[FIXProtocol]

My pleasure! I know the feeling. Some people make the simplest things sound sooo complicated. I do however respect the dificulty in understanding what a person does and does not know so you can simplify things without overdoing it.

[daddyworbucks84]

Very informative I'm a beginer. I wanted to know If I could day trade options, weekly trade and mouthly trade options for a hefty profit? And what is the best way to do that? Also how much capital would I need to do this the right way with out lossing to much money? Or is even what I'm trying to do possible?

[FIXProtocol]

Thank you. I'm more on the technical side. Hopefully somebody on the business side will see your question and answer it for you. :)

[FIXProtocol]

What should I talk about next guys? :)

[FIXProtocol]

Thank you for the compliments. It's very important for me to know that I'm delivering on my goal of simplifying potentially complex things and keeping it entertaining. I put a lot of effort into to it, so nice to know it's working! :)

[flinagin]

Nice video! You really helped clarify things for me, you made it very easy to understand. Thanks again.

[blackphosphor]

very very clear thank you. im just learning and will definitely check out your other vides

[FIXProtocol]

@blackphosphor Thank you very much sir! Your music is great by the way! You should post up more!

[expert25]

Fantastic video! Your explanation was clear and very understandable at a very basic level, which is what I've been looking for. I'm trying to get my kid who's 12 started in share markets and I'll definitely ask him watch this video. Thanks again.

[FIXProtocol]

Thank you very much sir! How far along is your child with understanding trading? May latest video was done by an 11 year old by the way. The one about Level II market data.

[AEVautomatic]

this is for children right?

[visualfxpro]

What about futures options? Bond Options? Treasury options? Very good video but misleading. He makes it seem like there is only one kind of options and like it's soooo easy. This kind of trading should be left to people with PHDs.

[FIXProtocol]

No comment.

[FIXProtocol]

Just wanted to say Happy Holidays to everyone. I know I have not uploaded in a while but I will be uploading some videos that I'm working on soon. Been VERY busy. I'll TRY to get to some of your requests.

[brandonmiller11]

Thanks man!

[FIXProtocol]

You are most welcome!! Are you a support person or trader?

[opulentthoughts]

Fantastic-I get call & put now.

[FIXProtocol]

Then I've accomplished my goal! Now to hopefully help another 3000 people! Spread the word! Thanks!

[dkjan]

Cool

[FIXProtocol]

Thanks!! Happy Holidays!!

[visualfxpro]

I have no idea..lol sorry

[visualfxpro]

Thanks! That is my ultimate goal...fun and easy learning. Glad to know I'm right on target. Now to finish editing before the sun comes up. lol

[q3563111]

wow, that was good. i admit i always got confused about put and call which is which, i always had to go back and check which one is to buy and sell but now i will always remember PUT is sell or get red of, like PUT the bananas on the couch

thank you. i just rated this 5 stars

[FIXProtocol]

You are very welcome! Got more stuff on the way. Right now I'm trying to finish up swaps and taking support calls. I really need a laptop. lol  Thanks for the compliment. It's important that I know I'm meeting my goal of making this potentially confusing material clear for everyone and delivering the information in a fun way so you're actually paying attention. What do you do by the way? Are you in support?

[FIXProtocol]

Thanks! Don't forget to rate the video. More good stuff on the way!

Futures

Unix Tricks

Call Options

Put Options

Short Selling

Please let me know about anything you would like to learn about. Thanks for watching!

[penfolduk78]

hey buddy - good videos, like the way you explain things simply - any chance you can go through swaps and ird's? you should think about becoming a trainer!

[FIXProtocol]

You are very welcome! Got more stuff on the way. Right now I'm trying to finish up swaps and taking support calls. I really need a laptop. lol Thanks for the compliment. It's important that I know I'm meeting my goal of making this potentially confusing material clear for everyone and delivering the information in a fun way so you're actually paying attention. What do you do by the way? Are you in tech support?

[visualfxpro]

This is great because it is soooo simple and easy to understand and it's not some boring video of some guy in front of a chalk BORED speaking in a monotone voice lol. Good stuff but I would like to see a part 2 with more detailed information since this mainly shows the principle and basic vocabulary.