 Right? But before we get into the options, one thing you want to do is, if you don't know what options are, here is a link to Investopedia Investopedia, okay? If you're in the chat, Investopedia, and I'll probably provide the link in the description of this video once it's been uploaded to our video sharing platforms as well as the audio on SoundCloud, okay? And this is the page for Essential Options Trading Guide, and it sort of runs you through what options are, and options are basically a derivative, right, that you can buy, which is a secondary bet on a stock where it's time, it's got a time constraint on it, and one option in general is equivalent to a hundred shares of stock, right? So it's really linked up with fractional reserve banking is very much on the same level if you know anything about fractional reserve banking, where banks can loan out a hundred times or more of the amount of cash they have on hand and deposit, right? So options you can think about as if you end up buying one option, one option for a certain stock, may it be puts or calls, is basically gives you control over a hundred shares okay, over a certain amount of time, okay? So that's what options are. Now, if you're betting that a stock is going to go up, they call those options calls, right? If you're betting that a stock is going to go down, they call those options puts, okay? And this page has videos in there as well, but let's, what we'll do, we'll just read the key points here, okay? Key takeaways. And by the way, before we continue anymore, my internet has been kicking in and out in the morning, early morning was kicking in and out, it's snowed here a lot, it's cold and whatnot, so if there's any interruptions of the live stream breaks, my apologies, sort of beyond my control, and I will try to come back up again as soon as we can, right? If not today, we'll continue this discussion in a future day, right? But here's the key takeaways from options trading, and we're just going to read this from investopedia, right? So key takeaways, point one, an option is a contract given the buyer the right, the right, but not the obligation, which is extremely important, but not the obligation to buy in the case of a call or sell in the case of a put, the underlying asset at a specific price on or before a certain date. And we're going to expand on this, we'll take a look at this, right? Point two, people use options for income to speculate and to hedge risk, right? And when it mentions people use options for income, basically those are people that are either writing calls or writing puts, right? Basically what that means is if a stock is going up, right, and you think the stock is going to go up, what you can do is sell puts short, basically naked, sell puts and take that money and bank it, and usually you don't extend it over too long of a period, usually you're selling basically using as an income basis for a shorter time frame, right? Because you can't really predict too far into the future in certain markets, right? So you can either, if a stock is going up, you can write puts, right? Basically sell them without having them, and because it's a time-constrained instrument, right, derivative, over a certain time it goes down to zero, and if you sold it, then you made money, right? So if you sold a put at $2 and after a certain time the put expires, you banked that $2. And the same can be said if the stock is going down, if the stock is going down, you're going to write calls on it, right? If you sell a call at $2 and the stock never goes up, that call is banking the money because it's going to go down to zero, right? That's the income part of it. Speculation is just basically either writing puts and calls, shorting them, or buying them straight up, puts and calls, and betting that a stock is going to go up or down. Hedging risk is basically if you've got a position in a stock, right? And you think there might be some bad news coming, but you don't want to pull out of that stock for multiple reasons. One of them being you don't want to pay taxes, right? If you had a lot of gains, if you sell a stock, then you have to realize those capital gains, right? So you don't want to necessarily realize a capital gain just in case there's going to be a hiccup in the company, in stock, right, in the price of the stock. So what you can do is if you're betting the stock is going to go up and you want to lock in your profits, you can buy puts, which basically means that you're going to bet that the stock is going to go down for a short period of time or a long period of time. It doesn't make a difference. And if the stock goes down, then you can sell the put and that difference, right? That difference, you didn't really lose because the stock went down. You just covered it with your put and the other way around, right? If the stock is going down and you think it's going to go down a lot further, but there might be some news coming in that might push the stock high, you might end up buying calls for it. And if the stock does a bump, right, then you made that difference. You made money off that and you can sell that and then wait until the hype is over and the stock continues its downward trend, right? So those are what income, speculate and hedge imply, right, are referring to. The other point, options are known as derivatives because they drive their value from an underlying asset and that should be self-explanatory because you're not really investing in something in a tangible asset like a stock, right? Stock in a company, you're doing a secondary bet on that thing, right? So for example, if you see two people flipping coins, right, for $100 a pop, right, flip a coin. One person's calling has the other one's calling tails, right? Well, those people are playing for $100 a pop, but the audience can make secondary bets on the flip, right? So a couple of other people that are watching these guys flip in a coin might decide to say, hey, listen, I'm willing to give you two to one odds that the guy flipping a coin is going to get two heads in a row and one person may take the bet, right? And because that's happening, the odds are more, right? So that person, when he takes the bet, he'll put $100 up and because this person gave two to one odds, if the person flipping a coin doesn't get heads twice in a row, the person that offered the option, right, will lose $200 and the person that took the option bet wins the $200 and takes his $100 back, right? And flip the flip. If the person does flip two heads in a row, the guy who put up $200 wins $100 from the other guy. That's the way you should think about derivatives. And there's multiple layers of derivatives, right? The stock market is, has a certain amount of value being played on it, but the derivatives market is a few orders of magnitude larger than that. Okay, it's huge. So if when you see liquidity completely die out in the market, it means the derivative market is being destroyed or there's a lot of people making a lot of money, which is usually, it's a two-way trade, right? It does happen. Lonely piggy, how are you doing? Hello, Chichou and chat. Hope everyone's having a good new year's eve so far. Indeed, good new year's morning for me. I'm eating pastries, mom's pastries. I'll show you guys in the, in the big screen. Super delicious, super delicious. First time chat. Imlumbo, Imlumbo, hey Chichou, first time chatting you live. I'm interested in what family is currently invested in. I am still more put, puts than calls. Indeed. Okay. Imlumbo family right now is, I forget what the percentage is. There's been a lot of trading going on. As far as equities is concerned, family is probably holding 40% of the portfolio in equities. Okay. Maybe, maybe let's say 50% of portfolio in equities. Okay. Majority of those are cannabis stocks. Okay. Because I think they've had a bottom. The family thinks they've had a bottom. Okay. So cannabis stocks are the majority of holdings in the family's equity position. The other 50% is options and from that 45% is puts. Okay. So about, not 45%. From that 95% is put. So basically 45% of the portfolio isn't puts right now, which is a huge bet, huge gamble with a possibility of substantial losses. But if it goes the right way, a possibility of gigantic returns. Okay. That's approximately what the family's position is right now. And the puts are encompassing some high-end fang stocks, tech stocks, as well as some industrials as well. Okay. As well as some consumers, consumer goods, textiles, if you want to call it. Right. The fourth point they have here. Gotcha. Thanks so much. Still have puts on Twitter. Still have puts on Twitter. Indeed. Sold out of puts. Family sold out of puts. Family obtained put positions in Twitter when it was in the 60s and 70s, low 70s and sold out in the low 50s. Right. Sold out a little too early, but it's locked in profits. Twitter went down to 43, 42. It bounced to around 44 and the family just acquired puts, some more puts on it this week. Right. And since we're towards the end of the week, you can guess when it was. Early week as well as later week, 44 dollar a week trade. And they're longer time frame because short time frame, it might still pop up. But on the longer basis, I don't think Twitter has a hope in hell of retaining its value market cap. Okay. Possibly. High gamble. Right. The fourth point in these key takeaways is a stock option contract typically represents 100 shares of the underlying stock, but options may be written on any sort of underlying asset from bonds to currencies to commodities. And I've never played the four acts. I've never played options on bonds, currencies, or commodities. Only puts and calls as well as for stocks, equities, as well as straddling, which is basically betting that a stock is going to do movement. Okay. That's what you're looking for when you're buying puts and calls. You're looking for movement because with options, you basically, it's a time sensitive bet. The longer you hold every day that goes by, you lose a little bit of your value on your options. And as you get closer to the expiry date, the option value drops significantly. Okay. So that's sort of the underlying takeaway from this. And when you control 100 shares, just think about it this way. If you buy one option for a certain company, you control 100 shares. So if the stock price at that company does a $1 movement, you didn't just make $1. If it's on the way up or lose $1 on the way down, you made $100 or lost $100. If a stock moves $10, you control the 100 shares, then that's $1,000. And there's time sensitivity in there. There's what do you call it, the premium you're paying for it and whatnot. But that's sort of the base way you can think about it. And on this page, there's videos that you can listen to what are options and they run you through it. Options as derivatives, calls and put options, call option example, more videos, put option example. And you can go through it, buying, selling calls and puts, buy, call, sell, call and all these things that you can do. And then secondary hedging your bet, straddling whatnot. So there's a whole bunch of information there. And I'll link it up just in case anybody has popped in more recently.