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Options Primer - Basics Stock Options Tutorial

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Uploaded by on Sep 3, 2008

http://www.optionsprosperity.com This stock options tutorial provides an overview of calls, puts, and other fundamental terms on stock options.

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Education

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Standard YouTube License

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  • No, that's incorrect. @ 130, you down 500: Remember, in example, investor paid $500 to enter the contract, to buy the stock at 130. The stock was trading at $128, but the option was to buy it at $130 in this example. Therefore, at $130, the option has no value: it doesn't provide a profit to buy a $130 stock for $130. So, there is no profit on the option. Therefore, you're down the entire $500. I hope this helps.

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  • great tutorial...thx for discussing the basics in this.

  • I know it can be tricky at first, but you will get it! :)

  • Do you intend to trade professionally or just for yourself?

  • thank you  for clarifying this,I was looking at the 200 gain/loss which has nothing to do with the strike purchase price made at 130, once again thank you.

  • nice tutorial, I am new at options but I think that 130 you make a profit of 200 but with -500 (initial investment) you still on the hole for 300 and not 500, am i right?

  • Hello,

    The tutorial is excellent. Thank you for such a useful video. Will check other videos too.

    Regards

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