 Hey, what's up you two? I'm Zeke and welcome to the dream green show. In this episode I'm going to bring you a beginner's guide on how to buy options, buy calls and buy puts. By the end of this video, you're going to know exactly what that means. But the reason I'm making this video is because down in the comments section, I have a pinned comment that would take you to my Patreon. The Patreon would take you over to my Discord. Over there, I post every single time I buy and sell stocks, my swing options, my covered calls. I post a lot of stuff over there, but we have a community of traders over there that like to day trade and they are day trading options at a successful rate. But there's a bunch of people in there that have been trading for a long time and there's a lot of newcomers that have just joined the Patreon, have just joined the Discord. They have a couple of questions about option trading before they completely dive in. I am so proud of everyone inside of the Discord because they took the opportunity to invest, not only into the stock market, but invest into their knowledge and also the investment to change their life. So I'm proud of them and they wanted me to make a quick tutorial over options, exactly what it is, how does it work. So I'm about to go over all of that inside this video. Everyone new out there into investing, make sure that you stick around for the entire video so you don't miss out on any crucial information. This is just going to be the very basics of buying options. It goes deep guys, it goes very, very deep, but this is the main ones that they are doing inside of the Discord that is generating some of our users a whole bunch of money guys. But before we dive into this video, this video is brought to you by Weeble. Sign up now by clicking the link down in the description to deposit any amount of money and you'll receive two free stocks valid up to $2,600. With those two free stocks, you could keep them inside the platform and decide to use it or you could sell those two free stocks and withdraw all of your money. It's literally free money. Also I'm leaving a link in the description to Coinbase. That is by far the easiest way to buy and sell cryptocurrency. And the last thing in the description is to Moomoo. Sign up for Moomoo, deposit $100 and you'll receive five free stocks valid up to around $17,000. So if you guys want the opportunity to get some free stocks, check out all of those links down in the description. But enough talking, let's go ahead and dive straight into this video. All right, so we're going to try to make this super simple. It's going to be hard for me to make this simple, but we're going to stick on the ticker symbol ASO, which is Academy Sports and Outdoors. It's a very big sports store down here in the South. I know a lot of you guys are used to dig sporting goods, but down here, Academy Sports and Outdoors runs the soft guys. So I'm very familiar with them. You want to find companies that you're familiar with and around what price point that they usually trade around, whether they're up or whether they're down at the time. So I post over in the Discord technical analysis all the time. Technical analysis helps us in the market determine whether the price is going to go up for the week or if it's going to go kind of pull back and go down for the week. So we do technical analysis over in the Discord as well. That really helps us with our option trading. And when you click trade at the bottom right, you want to hit trade options. The first thing it's going to bring you to is all of these expiration dates at the top. We are January 1st, January 28th, February 4th, February 11th, February 18th. So they're all spaced out at the end of every week. It's usually every Friday, the options were inspired. So what I mean by inspired is that you could sell your options before expiration date, but if you wait to expiration date and it's in the money, then your option would be executed. That means you have the option to do what you said that you was going to do when you put it in. It's kind of confusing right now, but I'm going to show you guys once we click on our expiration date. Now right now, five days out would be January 21st. I don't know when this video is going to come out. But this is, let's say before the market opened on Monday, this is Fridays and now January 22nd would be the Friday. That means your option is going to be inspired at the end of the week. So right now, if you're buying a call or buying a put, you're either betting that the stock is going to go up by the end of the week, or betting that the stock is going to go down by the end of the week, or you could go out a couple of weeks, months, or even years in advance. Those are called leap options, but that's a whole another video. So let's just stick to the first one. This is the main one that we do inside the Discord is weekly option plays. Now right here where it says buy call, that is betting that a stock is going to go up right now. Academy sports in the outdoors prices at $38.83. And if we was to click buy put, that is betting that the price is going to go down. So by call, price is going to go up by put the price is going to go down. Now the numbers on the left side where it says 39, 40, 41, 42, let's just say we're talking about buying a call. Those numbers on the side are called strike prices. The strike price means that is the option that you bought that you're going to execute that option at. So on the right, all options are done with the multiple of 100 shares. Now if it says on the right right here where it says 0.74, 74 cents, you multiply that by 100, that would be $74. That is how much that option is going to cost you. And if it was to click on the 39 call, everything on here means something. The IV means something you do not want to get IV crushed, but mainly at the bottom, at the bottom left, the Greeks. I would have to go over the Greeks in another video, but the Delta is probably one that's the easiest to explain, which is 0.42. That means for every $1 that Academy Sports and Outdoors go up, this option price would go up 42 cents, which is $42 because you're doing the multiple of 100 shares. So if Academy Sports and Outdoors went from $38.83 up to $39.83, the option would be going from $74 plus the 42 cents to around $116 if my math is correct. And you made money that way just from the stock price going up $1. Now if it was to buy $74 worth of Academy Sports and Outdoors, which would get you around maybe two shares worth of Academy Sports and Outdoors, and the price went up $1, you would have made $2. And that's why people love doing option trading because you could grow a smaller amount of money to a very large amount of money very, very fast. So once you do buy an option, let's say we clicked on that, of course, it's going to be $74 because you're multiplying it by 100. You could buy one option, you could buy two options, three options, how many options that you want to buy, multiply by 74. Now once you put this option in and you own one option worth of Academy Sports and Outdoors with a strike price of $39, if Academy Sports and Outdoors shoots up to $39, $40, $42 by the end of the day, you do not have to wait until January 21st to sell your option. You could sell your option the exact same day that you bought it and get your money back out and then look for another trade setup. So if you're up 100, 200, 300% in a single day, or by Wednesday, or by Thursday, you could go ahead and sell that option and get out. So a lot of people like selling that option before the expiration date, January 21st, so that they don't have to have that option execute because if at the end of the day, if your option do not reach $39 by January 21st, let's say it stays at 3883, it does not reach $39, then your $74 contract will become worthless and you will walk away with zero dollars. So if you're up and you're in profit, make sure that you take profit while you're in green, do not let green trades turn to red. But let's just say that you do want to execute your option on January 21st at $39, let's say Academy Sports and Outdoors shoots up to $50. Now you have the option to buy 100 shares of Academy Sports and Outdoors at $39, even though Academy Sports and Outdoors is trading at $50, you have the right to buy at $39, but usually you'll sell that to someone else that is selling cars, you'll sell that to them and you will get a boatload of money from not executing your option and to actually selling it to someone that wants to buy them at $39. So if you do want to execute your trade, make sure that you're in the money. So what I mean by in the money and out of the money, right now we're buying a car above the current price point. That means it's out of the money. This is out of the money. This is out of the money. Now we go below the price point, $38, $37, $36 is the strike price. Now we're buying cars that is inside of the money. That means literally right here, $36 car, that means Academy Sports and Outdoors, we have to pull back in order for our price point to become worthless. If it stays at $38 since we will end up making money off of this trade at the end of the day. Now that is buying cars that is us betting that a stock is going to go up. Remember, if your trade starts to go the opposite way, you always have to do technical analysis. Like for example, this right here, you have to have support and resistance lines before you enter the trade say, I'm going to take profit when hit this line. And if it pulls back and goes the opposite way, if it goes back 10%, 15%, I'm going to get out of this trade at this line. If it's somewhere in the middle and not at your stop loss yet, you can wait until Tuesday, Wednesday, Thursday until they eventually either hit your stop loss and you get out of that trade or it hits your take profit over the next couple of days and you take profit. So the last one is if buying a car is betting that a stock is going to go up, that means buying a put is betting that a stock is going to go down. And once again, if you're betting that a stock is going to go down, the strike prices is going to start to scroll down now and it reflects the price on the right. So if you think Academy of Sports and Outdoors is way too overpriced right now, it's going to pull back. Then for a January 21st weekly option, you think that Academy of Sports and Outdoors is going to be under $37 by the end of the week and you could buy that one for $0.63, which is $63. So buying a college betting that is going to go up, buying a put is betting that is going to go down. So there we go dreamers. If you have any questions about that, go ahead and drop them down in the comment section. I'll try to reply to them all. But the easiest way to get a quick response is to join the Discord. Over there, we have a great community of traders. They are helping everyone out. I have a group like no other inside of my Discord. They are so helpful and they also post option trades every single day. Take the ones that you want to take. Some of these traders are absolutely killing the inside of the stock market and then you'll find your own investment strategy, whether if you like swing trading, selling cash, your cute puts, just buying and investing to option everything that you need and want is over there inside of the Discord. Once again, that link is going to be down in the comment section. But other than that, guys, make sure you pick up your two free stocks from Weeble. Sign up for that. Do not miss out on any free money opportunity like that, guys. But other than that, I'm Zeke bringing you the dream green show and I'm out. Peace.