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

An energetic fun introduction to options in a very simple format that can be understood by just about anyone from soccer moms to IT professionals. The speaker is Carlyle Gordon who started working on Wall Street around 1998.

Production Data:
2:23:10:14:05:4989
3:28:10:09:52:6060
11:19:10:11:06.14480

Category:

Education

Tags:

• Stock Options basics
• options 101
• simple format
• Carlyle Gordon
• layman
• easy
• clear explanation
• basic options trading
• stock options
• derivitives
• hedging
• stock market
• wall street
• Trading
• investing
• NYSE
• Make money
• learn
• how to
• what are stock options?

[moarscooby]

Well done sir. Are you a CPA?

[FIXProtocol]

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

[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!

[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??

[FIXProtocol]

@ferdous82 Thanks!