Options 101 - Profit from all conditions

[acidentallycool]

i feel like i have waisted my time

[acidentallycool]

Agreed w #RandomUser2009.

Premiums for put options will never stay at 2 or 3 dollars throught 7 years. you are not accounting for the intrinsic value. And you absolutelly do not have to buy stocks.

[nirbhay121]

This is how fools are made to loose money.

[tanmoyroytube]

which software is this (sketch and record voice)? Seems very handy..

[poklzhou]

Every time the stock goes down, you are compensated in full, that's where the money is from. I have two points for this. 1. what if the stock is not so volatile , and it never goes down more than 2$ during the period guaranteed by the put option, then put option is decidedly not profitable. 2. for the more volatile stocks, I would imagine buyers issue put options for higher prices accordingly, since the risk for them is greater. And you'll still have to decide what is the reasonable price.

[poklzhou]

@poklzhou The way to make money is by betting for profits that outweighs the according risk. People can only do this in two ways. 1, By out-predicting the market, either through unfair, private channel of information or personal insights. 2. Buy playing with the brand-new financial products, where most people are still unable to rationally decide the real risks of items being traded. 

[poklzhou]

@poklzhou Let's put it this way, assume people tend to buy more put options after viewing this vid, put option prices goes up, eliminating the profits.But this creates a chance for making money if the prices accelerates out of rationality, resulting in a frenzy.

[mrcuboid]

Cut to 0.42

[klabouch900]

so regardless if the market goes down in 7 years you will still profit?

[DayTradersWin]

Great video - subscribe and friend for power packed videos...

[rameshjain2009]

It is not easy to get put option of for 2 dollars for one year. This is misleading

[AuthenticIdiot]

I don't understand how you can make a gain on your put options since you don't exercise them.

[RandomUser2009]

First: you dont get 1-year PUTs for the current strike at 2 dollars. You have to at least calculate with 5 dollars, because of the huge time premium! (result: 15K on a 30K-investment is ROI of 50% on options alone in 7 years -> sad!)

Second: if you buy the PUTs NOT at the peaks, but somewhere in the middle, you dont get rich at all. Big loss!

Third: The stock-buy was just for illustrating the outperforming character of options, right? Cause you dont have to own stocks in order to use options!

[rameshjain2009]

@RandomUser2009

I totally agree with you.

[webguy943]

@RandomUser2009 u kno what ur talking about.. the guy in the video hasnt got a clue. u should make stock videos instead.

[WalterElArgentino]

Hello, I'm a newbie to this too. I'm trying to learn what type of share trading i should invest in and this one sounds good. Can you trade this in any country? What is the smallest investment you need to get started? Can you "paper trade" this so that i can get some experience?

[tiansheng146]

Yes this scenario works, however need three things in order to earn money, 1st. that someone is willing have the put option contract with you(need two parties buyer and seller for this), 2nd,that price of put is fixed at the price of 2-3 dollar( it could be lot more expensive), 3rd, the prices go up and down (what if stock price stay the same? if it does that then you end up with paying money). So yes it works but these condition have to be in place.

[nos86accutane]

if you do the math on the options it comes out to 32 not 34

[flinagin]

Wow this is a great video, keep them coming.

[dnichols24]

very nice and educative video, but a young inexperienced chap that i am, im wondering specifics about what type of options were purchased? were they LEAPS? or regular put options. I'm guessing LEAPS since this is such a long term investment.

[conor34040]

Newbie here....Great video.

Can you explain why one wouldnt put a Call and a Put option on the same set of shares? Therefore benefitting from either way the market moves?

Only reason i can think of is placing these put/call options are quite expensive?

Thanks

Conor

[azizikhalid]

I answered your question in my blog azizikhalid(dot)com.

[conor34040]

@azizikhalid

i'll check it out, thanks!!

Conor

[jerry989]

Conor - YOU CAN. It can limit or HEDGE your loses by laying the Call/put on one stock. However, like you said, it'll be a little costly.

[conor34040]

@jerry989

Thanks Jerry & Azizikhalid , i've been trading on the paddypowertrader platform, i reckon its good for beginners/novice, I'd like to get into more advanced trading, can you recommend any were I'm able to place call/put options?

[Tekkenen]

Do anyone know where I can find stock spinoff research for free?

[QIWA]

nice video~

[O2H2D2]

Great video

[golfprobro4eagles]

lol

[brainstormedia]

I've written a short entry on this strategy. If you find this confusing, please go to my blog.

Thanks

[clever786]

interesting video indeed, i donot understand how u came up with 34 could you explain how you worked that out? I think thats what confused people :) thx

[hacx1]

confusing...