Understanding Stock Options - Part 1

[jordanhoon]

Too much opinion, not enough simple teaching of basic principles.

[Vaibhav8584]

Usless Video and the speaker is so loosing track and focus many times during the video.

[robertfschmidt]

Your video is only about half right at best. And, it’s very misleading because you leave out so much. Suggesting you can control so much stock with so little risk is way off the mark with Options.

I strongly encourage you to buy and read Robert Walker’s Pass the 7 book before doing anymore videos on this subject.

Rob

[jessicaburns123]

this guy has more saliva in his mouth then anyone i have ever heard before, he keeps swallowing is spit as if he is performing oral during this discussion...super annoying

[donrondadon]

@jessicaburns123 performing oral? You're the stingy type with the blowjobs aren't you?

[kman87675700]

Im not sure if your purposly misrepresenting the risks involved in options trading for your own profit or if you actually have never traded options. Im going to assume the former. What your doing is dangerous and puts ppl who dont understand the market at risk to lose a lot of their hard earned money. Your representing the margin on a option as the total cost/risk involved with trading them.

[Serrokot]

The markets grow for a profit. The profit is necessary to take shares and price growth. If the price falls, there are huge debts at the financial companies. These debts name "bad". Then they are cancelled as at Merrill Lynch?

[kiowaloveflute]

take a look at the june 10 call options on siri, as of today february 2, 2010 you could make some good money, it would have to hit 1.15 to break even, last traded at .95, it would take a decent size move but you could catch a double on this one, just keep your capital to a reasonable investment, like under 3,000 maybe 2 or 3 grand might be a nice amount to risk.

[kiowaloveflute]

If you look at the stocks list you will see ntl is up big as of Jan 18, 2010, as well as rrd, and aav and skx. They have all run alot so you know the saying don't be a pig, because pig gets slaughtered, I have set all the stops up close to protect my profit I am happy even if all stops are set off, because of the profits.

[kiowaloveflute]

Thanks blackphosphor, I hope that I can help in any way, my next favorite thing to making money is making other people money, but remember to keep stop losses close, one of the biggest things I learned is that the losses is what kills you, if you limit your losses to with common stocks to under 5 percent or less, you can live another day.

[kiowaloveflute]

for anyone who is wondering here is a list of my recent buys 8/21/09 ntl, @ 9.37, 8/22/09 rrd @14.46, aav 8/21/09 @ 5.40 and skx 8/21/09 @ 15.30. all with various stops to protect my investments.

[blackphosphor]

@kiowaloveflute im just learning about options. and i appreciate you sharing your experiences and ideas. you seem like you know what your doing so ill be sure to keep my eyes out for your comments.

[kiowaloveflute]

yeah true, I got in on ticker symbol sgy at I believe 13 dollars a share, its been on tear for awhile, I like to follow my common stocks buys with stops to protect my profit, right now I have set to a gtc stop at 18 either way then I still have a huge profit to show,

[kiowaloveflute]

I told everyone when the stock was around 3 dollars a share to put 2 or 3 thousand on long options on bac, then but knowone listened I put 15,000 on bac long options, I am up over 150,000 profit on those options call so far....

[NewEthio]

Nice, you should take the15,000 you put and play with the house money

[kiowaloveflute]

I bought BAC long call options awhile ago when the stock was around 3 dollars or so, I told everyone the bank would survive, and that could be enough to drive the stock up to ten or more dollars, now look at the stock's current price of around 17 dollars even if I would have bought the actual common stock of around 3 dollars I would have made at least 450 percent or more, instead I bought ten thousand dollars of call options when the stock was at 3 dollars, I dropped 15,000 dollars of bac

[kiowaloveflute]

I agee that options can make you a lot of money, I have done this many times. But with your examples your saying someone would buy at the worst possible point and ride it all the way down. I always use ten percent or less stop loss all the time, so I wouldn't lose 90,000 dollars, if you do that you have bigger problems dealing with psychology. Also, if you bet wrong on your option call or put you could lose 100 percent value, which at 3,000 is alot.

[joshuademoraes]

I use two accounts to trade options..is a good strategy.when sthocastic is down use 20% of the money to buy it, when it is top use 20% to sell it, totalizing 5 trades for account...when you feel satisfied, close you positions buying and selling for yourself..it's crazy hmm?