 Hey traders, this is T Bradley 90 from the my investing club chat I'm one of the top mentors and moderators in chat as a special gift to our viewers on YouTube We have created a free two-hour course to help teach you how to start a consistently profitable trading business and identify high-paying setups in just 30 days There will be limited seating every week So register for the course and reserve your spot now Using the link in the description as a special bonus for everyone that watches the entire video We will give you the link to a free 10-hour additional mini course that has never been released to the public Register now before all slots completely fill up Hello everybody, this is John 8k wildlife in MIC chat back for another episode of the options basics so the next part we're actually going to get into kind of like actual option trades kind of some of those basics the first two strategies that people learn when starting out the very first thing that everybody kind of really starts out where is this first one and It's basically you're gonna buy a call or buy a put and we kind of talked about it You know if you buy a call you're hoping or expecting the strike or that stuff Excuse me that stock Of the underlying that you bought it is to go up if you buy a put You're hoping or expecting it to go down And so one of the things that you have to understand it's this this This strategy buying calls and inputs is a very low probability of long-term success Because a you have to be correct in the direction so at best. It's a 50-50 whether it's going to go up or down And this is where it gets even worse than if you were just buying the stock So you got to be direction has to be correct timing has to be right because the expiration date And then you also have to have an expected move So the stock has to move greater than what the option pricing is already taken to account when you put on the position So at them at the money and out of the money options has the least likelihood of success for option buyers however, you know what you see on Twitter and All these other folks that are talking about you know, they've had these thousand percentage gains or Hundreds of percentage gains in a day or two. They're buying these these calls and or these and or puts But they are using them in a kind of a day trading mechanism on significant stocks that are moving with that have good volat good Liquidity in the options So if you don't get movement one way or another and the direction that you want You can have you know, like I said, you can lose a hundred percent of your investments So the options you're obviously pie that the premium is a lot less than if you're buying the stock but because of the date expiration and That thing is working against you every time you buy something on as an option So, you know why right here it says, you know, it can yield significant or massive gains It's because of that reason that you can get these large moves in the underlying Which would create these huge gains in the stock. So anyway, once again, I'm not a proponent of this type of trading I would be lying if I said I didn't buy calls and puts but there's specific reasons for it Usually it's very very very small completely speculative part of my trading I do not do this on a routine basis. I try to take higher much higher odd setups and And just like when day trading we trade when the when we have edge in this case The long-term success probabilities is very low and the deck is stacked against you So the two strategies the other two that I Like for people that are trading in like a Roth or have long-term or want to have long-term stock holding is going to be the two that we go over next and They're geared towards income generation and reduction of stock basis or risk. So those are two things that Most long longer term players are looking for is how to generate income And this is above and beyond any returns of the ownership of the stock itself and then reduction of risk So who wouldn't want to do either one of those are both Generate income and reduce risk. So the first strategy that I am a proponent of is selling cash secured puts and How you go about this as you sell and at the money or out of the money put option Hey traders, this is Tosh. I go by T Bradley 90 in the my investing club chat Just wanted to reach out and say if you have any questions about M. I see joining M. I see maybe you're a member already You have three ways to contact myself personally and through M. I see you can hit our social media You can hit me through pms in chat or you can contact us through my email at Tosh At my investing club comm that's Tosh at my investing club comm I will get back to you in a timely manner And I'm saying this because I'm here to help and I don't want anybody to be afraid to reach out and ask any question That they have we are here for you guys. All right. See you guys