Options Trading for Beginners (The ULTIMATE In-Depth Guide)

In this monologue podcast, Chris from Project Option provides a comprehensive beginner's guide to options trading, explaining basic concepts, characteristics, and types of options (calls and puts). He uses examples with houses and stocks like Tesla, Adobe, and NVIDIA to illustrate key points such as expiration dates, strike prices, and contract multipliers. Chris also covers intrinsic and extrinsic value, implied volatility, and the mechanics of exercising and assigning options, and he emphasizes risk management and the importance of trading liquid options. The podcast further includes a demonstration of placing trades on the Tastyworks platform, and concludes with advice on further learning, recommending vertical spread strategies and understanding the option Greeks.

Outlines

Part 1: Options Basics

Part 2: Advanced Strategies

Part 3: Practical Trading

Part 4: Further Learning

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Part 1: Options Basics

Introduction to Options Trading

Call Options: Definition and Basic Example

Real-World Call Option Example: Tesla

Understanding Option Pricing and Avoiding Exercise

Call Option Loss Example and Introduction to Put Options

Put Options: Definition and Basic Example

Put Option Gain Example and the Catch

Put Option Loss Example and Components of Option Prices

Intrinsic and Extrinsic Value

Time Decay and Option Terminology

Part 2: Advanced Strategies

Shorting Call Options

Break-Even Price for Short Call Positions

Shorting Put Options

Introduction to Implied Volatility

Understanding and Applying Implied Volatility

Exercise and Assignment

Part 3: Practical Trading

Trading Stocks and Brokerage Account

Trading Platform Overview: Bid, Ask, Volume, and Open Interest

Executing Basic Option Trades: Buying and Shorting

Closing Option Positions and Reviewing P&L

Part 4: Further Learning

Next Steps and Concluding Remarks

Options Trading for Beginners (The ULTIMATE In-Depth Guide)

projectfinance

Part 1: Options Basics

00:00Introduction to Options Trading

Introduction to Options Trading

03:18Call Options: Definition and Basic Example

Call Options: Definition and Basic Example

10:04Real-World Call Option Example: Tesla

Real-World Call Option Example: Tesla

15:36Understanding Option Pricing and Avoiding Exercise

Understanding Option Pricing and Avoiding Exercise

27:25Call Option Loss Example and Introduction to Put Options

Call Option Loss Example and Introduction to Put Options

32:25Put Options: Definition and Basic Example

Put Options: Definition and Basic Example

37:19Put Option Gain Example and the Catch

Put Option Gain Example and the Catch

41:55Put Option Loss Example and Components of Option Prices

Put Option Loss Example and Components of Option Prices

48:46Intrinsic and Extrinsic Value

Intrinsic and Extrinsic Value

55:48Time Decay and Option Terminology

Time Decay and Option Terminology

Part 2: Advanced Strategies

1:07:13Shorting Call Options

Shorting Call Options

1:17:31Break-Even Price for Short Call Positions

Break-Even Price for Short Call Positions

1:21:08Shorting Put Options

Shorting Put Options

1:30:14Introduction to Implied Volatility

Introduction to Implied Volatility

1:39:39Understanding and Applying Implied Volatility

Understanding and Applying Implied Volatility

1:47:51Exercise and Assignment

Exercise and Assignment

Part 3: Practical Trading

1:53:04Trading Stocks and Brokerage Account

Trading Stocks and Brokerage Account

2:03:37Trading Platform Overview: Bid, Ask, Volume, and Open Interest

Trading Platform Overview: Bid, Ask, Volume, and Open Interest

2:17:24Executing Basic Option Trades: Buying and Shorting

Executing Basic Option Trades: Buying and Shorting

2:33:36Closing Option Positions and Reviewing P&L

Closing Option Positions and Reviewing P&L

Part 4: Further Learning

2:45:58Next Steps and Concluding Remarks

Next Steps and Concluding Remarks