How to Trade Options

Learn the basics of options, including types, usage, and risk management, while following the instructor's real trades to understand mindset and volatility.

Define options as the right to buy or sell a stock by a strike price, and show how calls profit on up moves while puts profit on down moves.

Explore key options terminology, including calls, puts, contracts, premium, strike price, and expiry, and how they affect your minimum investment and potential outcomes.

This lecture covers the math of break-even for call and put options, using Ford examples to show strike price plus or minus premium, and highlights volume, bid-ask spread, and volatility.

Learn how options pose higher risk and volatility than stocks, and use rules like five percent per option, stop losses, hedging, and taking profits to manage risk.

Purchase a call option on Apple with the August 21 expiry and a 395 strike, buying to open at the market, and review break-even and confirmation steps.

Discover how six factors—stock price, strike price, time to expiration, implied volatility, interest rates, and dividends—drive option pricing. See practical examples and how market moves set break-even points.

Master selling a call option and locking in gains by exiting a position, using a real example with a seven-dollar strike, August 21st expiry, and a sell-to-close order.

Learn to place a stop loss on options to mitigate risk by selling to close at a limit price, locking in gains as prices move.

Explore option Greeks: delta, gamma, theta, and vega, and how they drive option pricing, time decay, and volatility effects on premium.

The video demonstrates buying Air Canada call options with an October expiry and a seventeen-dollar strike on the TSX, targeting a travel rebound.

Sell Air Canada options after a rapid one-week rise, locking in profits near the break-even and leveraging the October expiry to manage risk while letting remaining contracts run.

Master four profit-taking techniques in options trading: price targets, momentum-change exits, percentage gain exits, and selling when you need cash, emphasizing discipline, risk-reward, and locking in profits.

Master hedging by pairing stock with put options to reduce risk, seen in the Ford example comparing stock alone versus an insurance put at 5.50 expiring in two months.

Buy Shopify call options with an October 16 expiry and a 750 strike to ride the dip amid 47 percent year-over-year revenue growth.

Sell one call contract on Shopify options expiring 10/16/20 at a $750 strike, sold at market price, locking in about $23,000 on a $10,000 trade, with 120-130% gains.

Combine technical analysis with options trading by identifying a rising trend line and ascending triangle, then buy December 18 calls at the 360 strike for a breakout.

The instructor explains selling Apple options after an earnings beat, with the stock surging. He demonstrates locking in gains by selling, following the trading plan, and hedging when opportunities arise.

Learn how selling options premium leverages time decay, with buy to open and sell to open orders, and the risks of naked calls and hedging through higher strike buys.

Sell the premium on a call or put option to collect the premium, then hedge by buying a call to cap unlimited risk, demonstrated with Ford options expiring September 18.

Develop a disciplined trading mindset by establishing a morning routine and a consistent trading routine, manage risk with hedging, stop losses, and small option positions, and take profits when possible.

Explore the risk profiles of four option trades: buying calls, buying puts, selling calls for premium, and selling puts—and learn hedging, stop-loss, and risk management.

Trade day options on high-volume stocks like Apple, buying and selling within the day using calls or puts, guided by the stock chart for intraday moves.