 What is core options and how you can actually use it to profit safely in this current volatile market? Watch this video and learn it step by step. Hello, this is Chloe and welcome back to my channel. The only one place for you to learn about stocks investing as well as options. If it's the first time of you coming to my channel, remember to hit the subscribe button as well as the notification bell so that you will not miss out any of my future investment insights. An early thumbs up is also appreciated because it will tell you to algorithm that you find this video helpful and it will actually help to push out to more people to inspire them to start investing safely. Lately, the market has been really volatile and you must be wondering exactly how you should be using options safely to profit from this volatility. And that's why I decided to dedicate this video to teach you what are options and how you can use them to your advantage. So in the stock market, there are buyers and sellers of stocks and in the options market, there are buyers and sellers of options contracts. But you may be wondering why do people want to buy and sell option contracts and how can they actually make money out of it? Let's first begin by learning what are options. And now let's welcome teacher Chloe. Hello class, options are basically financial contracts that give the investors the right or obligation to buy or sell a stock within a certain time frame at an agreed price. There are only two types of options that you need to learn. One is call options and the other is put option. Hope you enjoy this class and I will see you next time. But I know you must be wondering wow Chloe, there's so many things happening in just one single sentence. Don't worry and that's why in this video, I want to break down for you what are call options and how you can use that to your advantage. To put it in a layman context, I'm going to use a very easy to understand investment vehicle that you are more familiar with, which is property. And using this property example, you will then understand how does call options actually work. Imagine right now you spotted a very good investment opportunity when this property is newly built and the location is right next to the downtown train station. You know that given time, this property is going to increase in prices because the location is good, the property condition is good and most importantly, the price is also very good. And that is why you want to buy this property right now to profit in the future. However, in order to buy this property, the owner is actually asking for a $1 million cash. And when you check your bank account, you realize that you do not have a million dollar cash inside. Seriously, who will put $1 million inside the bank right now? Either you must be super crazy rich Asian or you are simply crazy Asians. But being a smart investor, you are not going to forgo this opportunity. That is why you decided to strike a deal with this owner by writing him a contract. I'm really serious to buy this property at a million dollars from you. But right now, I do need some time to get a million dollar cash. How about this? I'm going to give you $50,000 right away. All you need to do in return is to give me a contract. And this contract will enable me to come back and buy from you your property at a million dollars within the next two years. Sounds like a good deal. I want to sell at a million dollars anyway. And right now, I get additional $50,000. Sure, why not? And tada, both of you shake hands and transacted the deal. Now, fast forward one and a half year later, the property price continues to increase because the economy is doing better and better. And right now, the original $1 million property is now being priced at $2 million in the market. So what will you do with the contract that you bought previously? Hey, remember me? One and a half years ago, I actually bought this contract from you with $50,000 so that I can buy your property at a million dollars. Right now, the market price has gone up to $2 million. So I am going to exercise this contract and buy from you at a million dollar cash. Ah, you got the contract in your hand. I have no choice but to sell to you my house at a million dollars. And you just made a million bucks like this. Great, let's go and celebrate. But before that, you may be wondering, what if no one and a half year later, I still do not have the $1 million cash? Am I going to forfeit this opportunity? The answer is no. Because this contract right now is worth a lot of money. Anybody with this contract can buy the property at a million dollars even though the market is selling at $2 million. That means this contract is actually worth a million dollars right now. And think about it, you invested $50,000 to buy this contract and right now you can sell it off at a million dollars. You make close to a 2,000% return just like this. And this strategy is called flipping the property by buying and selling these options to purchase contract. And this is how exactly in the past, people used to profit tremendously by flipping property just like that. However with the rules and regulations as well as the tax coming in, we can no longer do that. But you can still do this every single day in the options market by buying and selling core options. Because when you buy a core options contract, literally you are buying the right to buy the stocks at a great price within the certain time frame. And when the stock price goes up, your core option contract is going to be worth a lot of money. Just like what happened to the property example previously, and this is exactly what I did to one of the option trades that I executed on Microsoft. Even though the stock price only increased by 13% in 6 months time, my core options increased close to 70% in the same period of time. But I know you must be wondering, Chloe, there what are the risks involved in buying core options? Well, the risk lies in you buying core options on lousy companies that keep on dropping in prices. And your core option value will continue to decrease over time to almost close to zero. And that is why it's so important to get yourself the proper education in order to start investing safely. But if you know how to do core options the right way, you can accelerate your portfolio return tremendously during the market recovery. Just like one of our student, Hadi, who grows his portfolio from $200,000 to more than $1 million in a short 7 months. If you want to learn how to invest in options step by step, do join us in our upcoming Options Foundation class where we'll be sharing with you three powerful option strategies for you to profit regardless of the market conditions. All you have to do is click on the link around this video and register for your free spot. And if you find this video helpful, remember to give it a thumbs up and share it to your friends so that you can inspire more people to start investing safely. Lastly, do remember to join my telegram channel where I constantly update daily investment insights. With that, happy investing and I will see you in the next video. Arigato, mata ne!