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OPTIONS TRADING FOR BEGINNERS 📈 How To Trade Stock Options

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Options trading for beginners is today's video! Justin discusses how to trade stock options, the basics of call and put options and all of the basics a beginner needs to get started with trading stock options. Options trading can be difficult for beginners to understand. Watch this options trading for beginners video to learn how to trade stock options like the professionals! Special thanks to Justin from Road To The 2 Comma Club for making this options trading video for beginners. He is documenting his journey of building up a seven figure trading account. Make sure you subscribe to him and thank him for making this video! Justin's Channel: https://www.youtube.com/channel/UCrnF9GyCjvh0i47eD_XPRWg Justin's Instagram: https://www.instagram.com/jrskatr/ FOLLOW ME ON INSTAGRAM FOR DAILY MOTIVATIONAL CONTENT ✔️ @ryanscribnerofficial _______ Ready to start investing? 🤔💸 WEBULL: "Get a FREE STOCK worth up to $1000." 💰 http://ryanoscribner.com/webull BETTERMENT: "Passive investing, they manage everything for you." 📈 http://ryanoscribner.com/betterment FUNDRISE: "Passive real estate investing, 8 to 11% returns." 🏠 http://ryanoscribner.com/fundrise M1 FINANCE: "Invest in partial shares of stocks like Amazon." 📌 http://ryanoscribner.com/m1-finance LENDING CLUB: "Become the bank and make interest on loans." 🏦 http://ryanoscribner.com/lending-club COINBASE: "Get $10 in free Bitcoin (when you fund $100)." ⭐ http://ryanoscribner.com/coinbase _______ Want more Ryan Scribner? 🙌 MY INVESTING BLOG ▶︎ https://investingsimple.blog/ FREE INVESTING COURSE ▶︎ http://ryanoscribner.com/free-course FACEBOOK GROUP FOR ENTREPRENEURS ▶︎ https://www.facebook.com/groups/164766680793265/ COURSE CREATION COMPANION ▶︎ http://ryanoscribner.com/course-creation-companion LIKE MY FACEBOOK PAGE ▶︎ https://www.facebook.com/ryanoscribner/ PASSIVE INCOME MASTERCLASS LIVE EVENTS ▶︎ http://ryanoscribner.com/passive-income _______ Premium Educational Programs 🧐 PRIVATE STOCK MARKET INVESTING SITE 📊 http://ryanoscribner.com/stock-radar STOCK MARKET INVESTING COURSE 📈 http://ryanoscribner.com/stock-market-investing-course _______ Ready to keep learning? 🤔📚 My Favorite Personal Finance Book 📘 https://amzn.to/2NiyDiz My Favorite Investing Book 📗 https://amzn.to/2KEyd7D My 2nd Favorite Investing Book 📗 https://amzn.to/2tZmxBU My Favorite Personal Development Book 📕 https://amzn.to/2KJKgRn Not a fan of reading? Join Audible and get two free audio books! ❌📚 http://ryanoscribner.com/audible _______ DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. AFFILIATE DISCLOSURE: I am affiliated with a number of the offerings on this channel. This includes the links above under "Ready To Start Investing" as well as other influencers I bring on the channel. This also includes the use of Amazon affiliate links. (Send me something) Scribner Media LLC PO Box 641 Ballston Spa, NY 12020
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Text Comments (160)
Ryan Scribner (1 year ago)
FREE *STOCK MARKET* GUIDE: http://bit.ly/STOCKSGUIDE
pavel mihai (8 months ago)
Winner of a video, been searching for "options selling strategies" for a while now, and I think this has helped. You ever tried - Liyabrie Options Operable - (search on google ) ? Ive heard some super things about it and my mate got cool success with it.
Huy Anh Bùi (8 months ago)
Winner of a video, I been tryin to find out about "how to be an options trader" for a while now, and I think this has helped. Ever heard of - Liyabrie Options Operable - (do a google search ) ? Ive heard some extraordinary things about it and my cousin got amazing results with it.
Razvan Marin (8 months ago)
This was great, I been tryin to find out about "options trading basics" for a while now, and I think this has helped. Have you ever come across - Jenameron Penny Smackdown - (Have a quick look on google cant remember the place now ) ? Ive heard some amazing things about it and my mate got cool results with it.
Manuel Jr. Badilla (11 months ago)
Ryan Scribner Just wonderful, been searching for "best stock option traders" for a while now, and I think this has helped. You ever tried - Winoorfa Option Olegroson - (do a google search ) ? Ive heard some unbelievable things about it and my colleague got excellent results with it.
Ban white (1 year ago)
This is glorious, I been tryin to find out about "exercise price call option" for a while now, and I think this has helped. Have you ever come across - Genubrey Mispriced Infiltration - (should be on google have a look ) ? Ive heard some incredible things about it and my cousin got excellent results with it.
Kevo Official TV (17 days ago)
so lets say I buy a appl option at 170 right now . and lets say apple moves up to 167 I can sell my contract for more since its so close? so we aren't trading stocks more like contracts?
Joseph G (18 days ago)
Great video very well explained so far best one out . question you made money because apple went up but didn't reach strike price . what if you dont reach strike price .?
Shailon Sumpter (2 months ago)
Just trying to learn to trade and this video makes so much sense out of all the research I've been doing. Subbing to both. Thanks a lot!
Thanks so much for the sub it means a lot! I'm glad you liked the video too! :)
Ryan Scribner (2 months ago)
Thanks a lot!
Dan Ochoa (4 months ago)
This is the best break down of how options trading works on YouTube hands down! Good job guys! Truly..
Dan Ochoa (4 months ago)
I am not paying you shit Jason Bond... Homo...You can learn this shit for free idiot! Youtube, stop showing this clowns advertising!
hahahaha dude you literally made me laugh out loud reading this comment! Haha thanks so much I'm stoked you liked the video! And I agree I see that dude in like 90% of ads now he's the new Tai Lopez! Smh.
Ryan Scribner (4 months ago)
Lol! 😆
Joseph Zebrowski (4 months ago)
WOW..just fell onto this video, now subscribed!!! GREAT JOB making Option Trading easier to understand! Just getting into Option Trading and will be looking for more great videos! THANKS
Ryan Scribner (4 months ago)
Thanks for watching Joseph!
Rohit Surana (5 months ago)
Best video for understanding options
Ryan Scribner (5 months ago)
Thank you!
Mike Anderson (5 months ago)
sucky camera
Yeah I hadn't had my screen recording software set up yet lol Ryan helped me set it up after that. I need to make a better updated version of this video looking back over a year later I know I can make it much better now!
Oke Uwechue (5 months ago)
Good clear explanations. However why are you BUYING options , instead of SELLING them. It's far easier to make money *selling* insurance rather than buying it then hoping it's value will increase so you can resell it. Stop BUYING options. Only SELL them instead.
You're right it is easier to sell options but you have the potential to make more money buying them. But I had just learned how to trade options last year so I was just teaching what I had learned so far, watching back now almost makes me cringe haha I need to make an updated video for Ryan about options. I just felt since I was just learning it I would be able to explain the concept of options better to other beginners like me, and ultimately that was the whole purpose of this video just explaining what options are it wasn't meant to be advice on what to do with options. But thank you for the feedback!
Savage2OP (6 months ago)
So how much did he make on the AAPL contract haha?
Dustinjr1993 (3 months ago)
Closed at around 160, so thats 750 profit roughly per contract
vidz (7 months ago)
Yesssss! Please do an options series, as mentioned! :)
Jenks Ospina (4 months ago)
Start making 10x profits with EIT Method
Arca Mids (7 months ago)
great video - love the content man.
Jenks Ospina (4 months ago)
Start making 15x profits with EIT Method
Tristan Olarti (8 months ago)
His explanation is what I’ve been looking for! Instasubbed
Road to the 2 Comma Club (7 months ago)
So glad you liked the explanation dude! Thanks! :-)
Boss Life (8 months ago)
so.. it is like whole selling. you buy in bulk and it is cheaper.
Road to the 2 Comma Club (7 months ago)
But it is way more risky lol.
Patrick Castilleja (9 months ago)
might be a dumb question... if I bout 25 contracts of apple at 150, that's 2500 shares you have to buy of appl. that would be 375k in shares you have to buy.. I don't get it lol
Road to the 2 Comma Club (7 months ago)
You're on the right track! If you buy 25 AAPL call options you are buying the *option* to buy those 2500 at whatever strike price you set. You don't have to buy the stock though at the end you could always just sell the options which is what a lot of people do. But, if AAPL say goes up above your strike price and you do choose to exercise your option, then yeah you have to buy the 2500 shares at $150/share. So you'd need a lot of dough to do that lol which is why a lot of people would just sell the options and take the profit on those instead. Hope that helped! :)
Masterpkerko (9 months ago)
so if i have 200 on my account and buy options worth 200 ... what if the stock crashes ? would i lose all my 200 and even more would i go negative???
Road to the 2 Comma Club (7 months ago)
If you invest your full $200 in a call option and the stock crashes, then you'd lose your entire $200 if you held on to the option long enough. When you buy options assuming with your own money the most you can lose is 100%. If you use borrowed money to buy options then you can lose more than 100%.
Ramesh Swarna (9 months ago)
awesome awesome awesome
Ryan Scribner (9 months ago)
Thanks for watching!
Timothy Sukosky (9 months ago)
Thanks for the info it was very well explained and good luck with your trading hope you hit your stick, slang for million.
Road to the 2 Comma Club (7 months ago)
Thanks for the comment! Although at this rate it looks like Ryan will get there way before me lol. :-p
Skyee (10 months ago)
thanks video really captured my attention through out the whole segment and was very informative , is there however a way to loose or owe more money than I ever put in?
Road to the 2 Comma Club (7 months ago)
Thanks for the comment and kind words! To answer your question, yes it is possible to lose more and end up owing. This happens when you're trading "on margin" which is when you borrow money from your broker to be able to buy more stocks/options. You can have a margin account and not use their money however which is what I'm currently doing, so if you want to see first hand how that works it's all there in my vlog. Hope that helped! :)
Nancy Garcia (11 months ago)
Best options video explained thank you 🙏 🙂
Road to the 2 Comma Club (7 months ago)
Thanks so much for the kind words! Made my day! :-)
Jaron Pope (1 year ago)
this was fantastic! thank you so much.
Ryan Scribner (1 year ago)
Thanks for watching!
kevin mcgahon (1 year ago)
thanks good video
Road to the 2 Comma Club (7 months ago)
Thanks so much Kevin! :-)
Raahi (1 year ago)
Finally, a video where the presenters are not shouting to brag how they made their millions. Very sensible and calm presentation. Thank you gentlemen. It is very educating.
Katrina Millings (4 months ago)
I used to really think a lot of them were bragging but now I think they just get excited about their work. They deal with money so they talk about what they made the same way someone else talks about their day at the office and what they accomplished. I don't think some of them even realize it sounds like bragging because it's all normal to them and they're just being passionate about what they do.
Road to the 2 Comma Club (7 months ago)
Thanks so much for the kind words that really means a lot! Glad you liked it!
steve ducell (1 year ago)
nice vid...............but, i would like to point out that you have only experianced an "up" market. So when the market goes to a bear market, you may experiance some pain as you learn to re adjust.
Road to the 2 Comma Club (7 months ago)
Very good point! Idk if you follow my channel at all but I have quite a bit of instances where I get stung by the downward moving market, losing multiple thousands in a day. It's all there on the vlog so people can see what to expect and hopefully prepare themselves if they decide to start trading options. :-)
gen suikoden (1 year ago)
Best video explaining options... thank you
Ryan Scribner (1 year ago)
Thanks for watching! Make sure you subscribe to Justin's channel, as he made this video. Link in the description 😁
Leon Carter (1 year ago)
Great Video Justin. My question is related to calculator input. Where did the 2286 number come from? Other than that, I'm tracking. Thanks again for the video.
Road to the 2 Comma Club (7 months ago)
Thanks so much Leon! That $2286 was just how much money I had to spend in my account lol it wasn't anything important. I used to use borrowed money (aka margin) to invest in my positions but after I got enough money I only wanted to use my money which makes it much easier to sleep at night lol. Luckily I stopped using their money at the right time otherwise I'd be losing a lot of hair this year! :-p
Petya G (1 year ago)
this is awesome ! Thank you ! The best ever explanation for beginners !
Ryan Scribner (1 year ago)
Thanks for watching!
dwenovel john (1 year ago)
finally.. thanks
Ryan Scribner (1 year ago)
Thanks for watching!
Suzanne Ramoundos (1 year ago)
WOW, Big shout out to Justin! Just like he said, we have been looking and looking and reading and very little help with buying options that is real. Thank you so much for this video. We are still bystanders and are going poor buying exp. stocks. LOL. TD has a little thingy about charging .75/contract plus regular trade fee if that helps understand cost outside of contract. Do they charge all this again after you close the contract...I bet they do. And all that has to be factored into the created price..so 150 can become really like 152 in our case. Just something to think about. Also there was a warning out there about dividends...something maybe Justin can speak to in another video. How the dividend can mess with stock and contract price? So new to all this and there is so much to learn. Definitely please start a channel this. 2 commas? Darn would just like to see more + in front of numbers, LOL. Thanks again to both of you.
Road to the 2 Comma Club (7 months ago)
Hey Suzanne! Sorry I missed this comment but I definitely remember you I hope you've been doing well! Sadly this year wasn't at all like 2017 but hopefully we can still see some gains in the end! :-)
Katie Tutorials (9 months ago)
kennedy harrison has help so many trasform there life financailly when it come to trading binary option. need any help contact him here [email protected]
Sippriana W (1 year ago)
Wow thank you so much. This is the simplest explanation of options that I can really understand. You are great at explaining with simplicity. Thank you for sharing and may you make your goal.
Road to the 2 Comma Club (7 months ago)
Thanks so much that was such an amazing comment! Makes me smile :) I'm glad you learned a lot and best of luck in your investment journey as well!
Ryan Scribner (1 year ago)
Thanks for watching! Make sure you subscribe to Justin's channel as he was the one who made this video. Link is in the description!
Angelica Montagut (1 year ago)
Very good and simple instructions about Optios Trading
Ryan Scribner (1 year ago)
Make sure you subscribe to Justin's channel! Link in the description :)
Alan Barnes (1 year ago)
Great Video Bruh!!!!!
Road to the 2 Comma Club (7 months ago)
Thanks Alan glad you liked it! :)
Ryan Scribner (1 year ago)
Thanks for watching!
Patel Vidhu (1 year ago)
Option is risky but gives you tremendous return if you know how to trade.
Ryan Scribner (1 year ago)
Yep!
OC CLEANING LLC (1 year ago)
That was amazing video. I watched other videos on Youtube and spent many hours searching to understand call or put option. This video is simply perfect, simple and practical. big thank you Guys.
Ryan Scribner (1 year ago)
Glad to hear that thank you for watching! Make sure you subscribe to Justin's channel, link in the description.
Paltibenlaish (1 year ago)
thanks for share. question: what happend if u hold your option. and reachs your price goal exactly(video eg: aappl 150usd ) on expiration date. you win money?
Road to the 2 Comma Club (7 months ago)
Sorry for the late reply but you don't win anything really you just have the option to buy the 100 shares of AAPL at $150/share if you choose to exercise that option. Where the profit comes in is if you sold your option prior to expiration for a profit or if AAPL went to a price over $150 and then you could buy the shares at $150 and sell them for the current price which would also give you a profit. Hope that helped!
Kavitha V (1 year ago)
Paltibenlaish you have to exercise it
tom cook (1 year ago)
Good into to the basics.
Road to the 2 Comma Club (7 months ago)
Thanks for the comment Tom I'm glad you liked the video! :)
Ryan Scribner (1 year ago)
Glad you liked the video!
KAY (1 year ago)
i see the light now Thanks sooooo much good explanation with less words!
Road to the 2 Comma Club (7 months ago)
Thanks for the kind words Kay! I'm glad you enjoyed the explanation! :)
Ryan Scribner (1 year ago)
You got it! Make sure you subscribe to Justin's channel as he made this video. Link in the description!
Kwame Banahene (1 year ago)
Man, this is so simplified. I've been watching so many option videos and this is quiet the best. Makes me fill more comfortable getting into option trading
Road to the 2 Comma Club (7 months ago)
Thanks so much Kwame I'm glad you enjoyed the video! I used to be a teacher so I always try to explain things in the clearest way possible, really glad to hear people understood it well! :-)
Ryan Scribner (1 year ago)
Glad to hear that! Make sure you subscribe to Justin's channel the link is in the description. He was nice enough to do this video for my channel.
trojan2561 (1 year ago)
Great video I have been trying to understand options for a month now ... actually broke it down in simple terms going to place my first option trade tomorrow...confidently
Road to the 2 Comma Club (7 months ago)
Thanks so much for the comment trojan! I hope you were profitable on your first option trade! It's a learning journey but a fun one to be on in my opinion! :) p.s. sorry for the late reply lol
Ryan Scribner (1 year ago)
Glad you liked the video make sure you subscribe to Justin's channel as this was a guest video!
Nismo398 (1 year ago)
fantastic video. keep it up!
Road to the 2 Comma Club (7 months ago)
Thanks so much! :-)
Patrick Moore (1 year ago)
thanks you! I have watched about 10 videos on options and this has to be the best one!
Road to the 2 Comma Club (7 months ago)
Thanks so much dude! I'm glad you liked it! :-)
Ryan Scribner (1 year ago)
Make sure you go check out Justin's channel! Link is in the description :)
Kevin Dolan (1 year ago)
I loved this video. Thank you guys so much for sharing your knowledge.
No problem man thanks so much for watching! :)
Ryan Scribner (1 year ago)
No problem! Make sure you subscribe to his channel and drop him a comment as well :)
Jaz Emminger (1 year ago)
Your guest was incorrect in his AAPL example in that you can't lose more than what you paid for the contract (plus fees). He does not have the obligation to purchase anything further. So, if the price of AAPL plummeted, and his contract essentially became worthless, he would allow the contract to expire, walk away, and lose the $265 (plus the small fees) he purchased the contract for. In his example that his contracts raised in value, he would (or could) have sold them when they became valued at $6.20, yielding $620 (minus fees). So, he risked $265 to gain $355. Furthermore, it is theoretically possible for the stock price to keep increasing in value. Were that to happen, the options price increases, first in a linear fashion, and then closer to expiration it goes up exponentially (provided the stock price is still increasing). In summation, the opportunity for profit is (hypothetically) infinite, whereas the loss is not. You only lose your initial investment.
Oh crap isn't that what I said? I know you're right I thought I had said that in the video, if not we will definitely make a new one to clarify! I also noticed that I said it didn't matter much for me to choose an expiration after October 20 since the iPhone 8 (should) comes out before then, but actually choosing a further expiration would have made the call less risky which I realized after making the video. I'm going to make notes about this one so we can make a better one in the future, thanks for the comment dude!
Janet Vasquez (1 year ago)
This guy should be an instructor!! Love this guy!!
Thanks so much for the kind words! And yeah I used to be a high school math teacher full time! haha. Now I tutor and vlog about trading full time :)
Ryan Scribner (1 year ago)
Actually that is his day job he is a teacher and a tutor!
Arthur Thorne (1 year ago)
Thank you for the great video!!
Tim Jurich (1 year ago)
Thank you for this video. I've watched about 15 videos and yours is the only once that broke it down in a way to make it easy.
Road to the 2 Comma Club (7 months ago)
Thanks so much Tim! That was my main goal with this video super stoked to hear you enjoyed it and could understand it! :)
Fabian Roland (1 year ago)
In February I bought a very honest book explaining the types of shares and strategies etc and one of the most serious things the guy said was 'Only invest in Options if you know exactly what you're doing. With Options you can lose more than everything in your life.' And that's very true, yet I still think this is the most interesting way of stock investment as long as you're staying on the ground
Road to the 2 Comma Club (7 months ago)
That is very true! On my vlog you can see days where I lost over $20,000 in a single day. Options can definitely be dangerous so it's alway best to not risk too much money and not chase after the huge payouts because you can easily get burned.
Fabian Roland (1 year ago)
TheFreakinnMelissa Unfortunately I'm not aware of an English version of the book but originally it's 'Cashkurs' by Dirk Müller, there might be info on his website about the localization
Mel Z (1 year ago)
Fabian Roland what book is this?
FlyBENNY (1 year ago)
WOW awesome video..love the break/down of how options work. Keep up the good work!
Katie Tutorials (9 months ago)
kennedy harrison has help so many trasform there life financailly when it come to trading binary option. need any help contact him here [email protected]
Ryan Scribner (1 year ago)
Make sure you subscribe to Justin's channel! He was nice enough to make this video for you guys.
BigJo305 (1 year ago)
Nice, so he's basically up 75% so far on his 9 AAPL oct 20 call as of this comment. Ive watched countless videos on options and this one is very useful. He's the first i've seen do a live trade. I Appreciate the insight. Thanks
Road to the 2 Comma Club (7 months ago)
Thanks BigJo! Yeah I actually decided to incorporate the trade into the video since it was the day after and I hadn't sent the video to Ryan yet lol so I figured why not show people a live trade? I figured it would help even more to understand how to buy an option. :)
Ryan Scribner (1 year ago)
Make sure you subscribe to his channel!
Larry Mccracklin (1 year ago)
Great  video I starting to trade options and im going to be following you
Road to the 2 Comma Club (7 months ago)
Thank so much Larry! Hope you're doing well this year it's been a crazy one!
Ryan Scribner (1 year ago)
Make sure you subscribe to Justin's channel as he is the one in this video :)
THRONE Knows (1 year ago)
oh boy this is gonna be interesting best of luck too all you traders the market is squeeing everylast penny off the streets this is a good sign i have seen it before
Jackie Comitino (1 year ago)
Hey Ryan I'm setting up a Tradeking account and was wondering if you could make a video or point me in the right direction as far as the new account process. Not sure if I should pick balanced, growth & income, growth, max growth...etc. thanks!
linop412 (1 year ago)
Thanks for the vid. You made everything really easy to understand. Been trading for over ten years now, but always like you did when you started buy simply buying, holding and selling. Now all I see and hear about is options. It was time to finally learn and your video helped a lot, so thanks again. I do have one quick question though... how do you figure out what your option will be worth if it goes over the strike? So say I buy 1 call option contract of apple for Oct, 08, 2017 with a strike price of $150.00. The ask is $5, so I pay $500.75 total. I understand that I can lose the total amount, but how do I know how much I will make if it goes above the strike price?
Thanks for the comment linop! Awesome to hear you're finally getting into the options game as well! So with your question I don't know the exact math since a lot of it is based on implied volatility but here's a simple explanation based on your example. If you buy 1 AAPL call for OCT 8 2017 150.00 and the ask is $5.00/share you'll pay $500 + the fee so let's say $508. Of course if AAPL is trading at $140 at expiration your contract is worthless and you lose the $508. If the stock is at $160 at expiration then you're contract is worth $10/share because the stock is currently trading at $10 above the strike price. So you'll make $1000 profit on your call since $10 x 100 shares is $1000. If the stock is trading at $170 you'll make $20 x 100 = $2000 profit. Now let's say it's September 25 and AAPL is currently trading at $170/share. You can now get MORE than $2000 profit if you sold today because there is still some time left in the contract, so there is still some implied volatility left because with 13 days left to expiration the stock can still move up even more (or down) so depending on how volatile the stock is your contract can be worth a little more or a lot more. But when it expires there is 0 volatility left to be seen so you just get the current price - the strike price as your profit. I hope that helps! :)
ViperX (1 year ago)
I traded options for a while but there is way too much babysitting and it was getting on my nerves having to keep track of my portfolio constantly. Portfolio volatility is ridiculous, and dont even get me started on theta decay.
InThEgYm24/7 (1 year ago)
Bro, thanks for the explanation of stock options. You made it very easy to understand
Thanks so much! It was my pleasure! :-)
Ryan Scribner (1 year ago)
Thanks for watching! Make sure you subscribe to 2CommaClub he was nice enough to make this video for us.
Christian James (1 year ago)
could you do a top 3 or 5 energy companies to invest in video
Ryan Scribner (1 year ago)
Yes this is on my list of ideas already! Hopefully I will get it out soon.
Alvin Jones (1 year ago)
Finally a video that explains Options in English.  Thanks. Big thumbs up.
Henry Dolf (1 year ago)
I bring good news to all traders , i have been using a strategy called the Octavia strategy owned by Alekk Ivanov I promised i will give my testimony the minute i start making money and here i am doing so , if you want to make thousands of dollars weekly you should check about the Octavia strategy on google for more information.
Thanks so much!! :-)
Ryan Scribner (1 year ago)
Make sure you go to his channel and support his videos as well!
Kappa123 (1 year ago)
Lol that Amazon Call. Already way in the money on that one. In that case, would you sell th contract or wait for expiration and buy the shares?
Haha yeah I did very well with that one! Jeff Bezos and Elon Musk are basically my heroes :-p I ended up selling the contracts because I wouldn't have been able to afford to buy 200 shares of AMZN at that price. That would have been (holy crap I just calculated it as I was typing this) $170,000.. dang! Yeah definitely couldn't afford that haha. So yeah since I usually can't afford anything I just sell the contracts and buy new ones. :)
Andreas Jure Markota (1 year ago)
Hello Ryan! I want to start with investing in a fund. Its called MS INVF US Advantage A. It says that after a period of 3 years it gives you a +93,8 return on your investment. I am trying to find 2 or even 3 funds i can invest around 1,000 dollars in each. And then monthly or every 3rd month i will put in 2-300$ in each funds. So I wont "only" invest 1,000 dollards and wait 3 years. I have no hurry and im in it for the long run. Do you think this type of investment is a good or bad choice? And have you ever heard of the fund "MS INVF US Advantage A"? I think almost 100% return in 3 years seem alot, but judging from the growth rate it seems like you can make a lot of money with this fund. I also found a lot of others that has a growth of 30-70% over 3 years. Would that be a better or more secure fund? Note: I only invest money i have saved up and can afford to lose, but of course i am hoping to make money =) Thank you!
Mick'Arooney Gonzales (1 year ago)
Great video! I did not know what options were until now and will try them out.
Henry Dolf (1 year ago)
I bring good news to all traders , i have been using a strategy called the Octavia strategy owned by Alekk Ivanov I promised i will give my testimony the minute i start making money and here i am doing so , if you want to make thousands of dollars weekly you should check about the Octavia strategy on google for more information.
Thanks so much! :)
Ryan Scribner (1 year ago)
Thanks for watching!
Ice (1 year ago)
Hey man, What do you think about SNAP? Do you think it is worth investing in? I got in at 21 but it went down a good amount.
I actually got in at $24 and sold at $25.02 lol. I'm not quite sure about SNAP, they definitely have a great platform but I keep finding myself going back to Facebook/Instagram. I go through spurts though, I definitely do like Snapchat though. If they can find a good way to monetize I think they'll be a great investment. I personally love their Explore page lots of cool content to watch there. I did just hear the other day though that they got a few new "buy" ratings so it's definitely possible it can go up in the near future. :)
Bryan Geonzon (1 year ago)
You have no idea how many people this video will help.
Henry Dolf (1 year ago)
I bring good news to all traders , i have been using a strategy called the Octavia strategy owned by Alekk Ivanov I promised i will give my testimony the minute i start making money and here i am doing so , if you want to make thousands of dollars weekly you should check about the Octavia strategy on google for more information.
Thanks so much man! I really hope it does help a lot of people! :)
Gregory Hunter (1 year ago)
Not related, is it worth buying 1 share of Amazon
Gregory Hunter (1 year ago)
Road to the 2 Comma Club thanks
Not really.. you'll spend about $900 for 1 share and you'll spend about $7 fee, so the stock will have to go up $7 just for you to break even.. and even if it goes on a huge gain streak to $1000 you're profiting less than $100.
Joel Zook (1 year ago)
thanks for the good video very helpful
Thanks!!! Remember I'm still a "beginner" when it comes to options even though I've already made a lot of money from options.. but that's because you don't need to learn everything there is to know about options and be an "expert" to make money. You just need to pick a company that's on the rise, and if you pay attention to the news it's not too hard. :)
Robert Caldwell (1 year ago)
I'm stunned....like I just watched a 50 wagon train barrel into 10 school buses full of children, derail and hit a chemical plant that released toxic gas and killed the entire town type of stunned. .....like....where to begin.... 1. Buying options is a terrible investment in the long run, it is usually used in concert with other trades in order to protect positions or make synthetic ones. For example, buying stock and buying a put protects the stock from falling, but just buying a Put will surely see a downturn in your account eventually. 2. Why is buying bad? Well, simply put, stocks usually have market makers that position price spread. When these market makers have increased volume throughput within a small time scale during the day, they normally will reduce their individual trade position per strike, which leads to the stock moving at a faster pace.....which also increases the "ATR" (average true range), and subsequently, the volatility of the stock itself. When volatility goes up, option prices go up based on an elliptical curve, and this is reflected in the extrinsic price of the option. This means that if a stock is moving around too much, then options will be overpriced, and since most market makers base their intrinsic on black-scholes formula, options are never underpriced. There's usually a strategy where you buy options when IV% is less than 7%, but it hardly happens, and the profits are very slim....compared to waiting for a stock to hit over 20% IV and sell the options instead. 3. NEVER Buy/Sell at market (MKT).....that's terrible practice. Naturally stock spread is very small, but option prices have a big enough gap that you can actually squeeze quite a bit of money out of a trade just by setting a limit instead. You also never know how many "lots" have been set at the price you are looking at (in the example of the AAPL split option order, some were bought at price X and the rest at price Y)......this means that you could have a guy selling at much higher than you expected behind the "wall" price, if you smash through that wall, you'll end up paying that guy's price for the rest. This is usually the same pitfalls as stop orders being run over by quite a distance. If you need any help with options, managing risk, taking profits, etc., just ask.....I've always wanted to a youtube howto, but I have stage fright.
Cool, thanks for the reply!
Robert Caldwell (1 year ago)
ATR = average true range. True range is normally calculated as the greatest value between high-low, high-closeYeseterday, closeYesterday-low. You can think of it like the range at which price has moved within 24 hours. 4.87 is a good mark price.....and you'd usually get filled within 30 seconds, if there's open interest. If there isn't, don't worry, you'll be first in line at 2 ticks out, so no rush (options don't move as much as stocks do).
Thanks for explaining, that really helped! What does ATR mean? That's the only thing I didn't get, glad I understood the rest. :) So what if the bid is say $4.85 and the ask is $4.90 for an option, would you still recommend (assuming you wanted to buy the option) setting a limit price of $4.87 or something?
Robert Caldwell (1 year ago)
I wasn't attempting to disrespect...just making a joke. 1. I never said you were stating to only trade options....what I was stating was that buying options naked is a terrible strategy. As for AT&T, yes, it's a good stock...and as I stated, that's because it offers dividends and options, without those key factors, a stock is worthless (in my eyes). 2. There was many points here, but I'm assuming you mean "IV%" which a lot of new-ish traders tend not to look at. IV stands for "implied volatility" and it basically lets people know how much movement a stock is making....the more movement, the more risk, the more volatile it is. Given a stock that is more risky means that traders will price options higher to account for that risk (raising the extrinsic price). Let's take a look at generic stock ABC, it's trading for $100, with a steady volume of 500,000 shares a day and the IV is at 1%. This means that the expected move within 1 year is probabilistically $4, give or take. A 100 strike Call at 1 year might price at maybe $2.00....that exact call would price at nearly $5.00 at 25% IV. At extremely low IV, options are more valuable to buy because the probability of movement is higher than the price of the option coverage.....but when IV increases, it flips to be more valuable to sell. Think of it like this, pens have sold for about $1 for the past 25 years....suddenly there's a shortage of pens and people panic. People with pens begin to sell theirs at $2 or even $5 each, the option to buy a 100 stack of pens a month from now has gone from $3 a contract to $25. You know damn well that the pen manufacturer is going to be supplying pens at some point, and the price will eventually settle back down to $1....why pay $22 more for the same contract? I would sell the contract for $25, and roll it until the hype goes away, then buy it back for $3 that it normally is. This is a very crude analogy. 3. It isn't just 1 guy, but anyone can be a market maker if they want to. The fact that it was "1 penny off" is the reason limit orders are important....it might have worked for you in the past, but MKT orders tend to be ruthless. If you ever looked at a Bid/Ask lot spread, you would see what I'm talking about. Mark might be selling 10 shares of ABC at 100.00, Tom is selling 20 shares of ABC at 100.01, and then there's Jerry selling his 20 shares of ABC at 105.10 (all limit orders).....if they are the only people on the market, the only ask price you'll see is Mark's 100.00. You think to yourself "that looks great, I'll buy 50 shares at that price," and you set a MKT order to buy 50 shares....next thing you know, you're paying out $5,102.20, which is $102.04 per share. Instead, you set a LIM order for $100....then you will ONLY be filled with Mark's 10 shares, and unless someone else sells at that price, you have the entire day to fill the other 40 shares at your price. Now, normally, a floor trader will notice that you want it for $100 and will also give you Tom's 20 shares at a penny more because he knows he can take the 20 cents out of the commission he's going to charge you anyway....but that's another story. ....as for the other stuff... I've studied stocks since I was 14 (so more than 20 years now) with various "fake money accounts" to test on the actual day-to-day grind until I was old enough and knowledgeable enough to do it on my own....been trading options for nearly 10 years now. As for "experts," you are correct, everyone has their own idea of where stock will go, but I don't dabble in guesswork. If the bulls think it's going up, they'll buy their bet up, and if the bears think it's going down, they'll buy their bet down....I'm the guy who sells to both of them the overpriced bets they make. As for TSLA....that would have been an awesome sale for me at nearly 40% IV, but I don't trade non-dividend stocks....too much speculation with no returns to shareholders. I don't play the market to own pieces of companies, maybe if I become a billionaire, but at the moment, I just want to build up an account big enough to retire on. I'm not entirely against risk, but I have been burned a couple times. I stick with what I know and I'm getting a minimum 30% a year returns, and that's healthy in my eyes. If I was completely against risk, I'd probably only be around 5% a year in returns. "oh I should wait for the price to come down so I can squeeze out a few more bucks in profit", not exactly what I meant, but setting a limit to even the maximum amount you're willing to pay will ensure that you don't blow through all of the Ask prices. This is to protect you, not about waiting for a "dip down" or anything exactly. But for options, there's usually a bigger spread than with stocks, and your broker will normally cover the midpoint....so why waste all that money? For example, an option has a bid/ask of 4.85 and 4.95....I can sell that option at 4.90 and be filled within seconds, that's an extra $5 in my pocket per trade, why would you not? I don't look at fundamentals either, my questions are simple: Does the stock give dividends? (do they take care of shareholders) Do I know the company on a day-to-day basis? (I don't screw around with chinese/unknown companies) Do they have a healthy option chain? Where is their IV% at? Where is the range of the stock heading given the history and ATR?
Thanks for the comment, I'd like to take this opportunity to learn from each other I don't want to start an argument so please don't take anything the wrong way, I'm still learning myself. But let me address some of your points and then ask you some questions: 1) In the video I never said you should only trade options, I stated it could be a good option depending on how much risk you're willing to take. I made sure to mention that they're much riskier than owning stocks, and even though you could make a lot more money you could also lose a lot more money. In fact if you watch some of my vlogs I often mention why I put a lot of my money in AT&T, because I believe it's one of the safest investments out there, very solid stock doesn't move a whole lot and pays great dividends.. I use them to offset my risk from all the options I own. 2) I didn't 100% follow you here, could you elaborate a little bit more please? 3) I read this point a few times and I think it makes sense. Here's my question though, is it just one guy setting the price for all of the options in the market? How could one guy have that much influence? And when I purchased the call option yesterday the price I ended up buying at was exactly what the Ask said right before I bought it, except for the other one which was only 1 penny off.. How long have you been trading options? I only just started in January so I'd be happy to learn more if you've been trading options way longer than me :)  But also remember for every bull there's always a bear, and yet both are called "experts." There have been several "experts" that said TSLA would drop way below $200 this year, and here we are with TSLA trading over $300/share. I literally just saw an expert from a firm yesterday on CNBC that said FB would never be a buy for them based on whatever cockamamie calculations they used. And because of their "professional analysis" and crunching their numbers, they literally left billions of dollars on the table because FB is up over 400% since their IPO... and they'll continue to miss out on millions of profits because of whatever "professional" opinions they have... My point is stocks don't always behave based on textbook analysis and calculations. A lot of it is feel and hype. TSLA hardly ever makes a profit yet their stock is up over 1600% since their IPO... anyone with a degree in finance would have stayed well clear of TSLA because of their "fundamentals" and P/E ratios and whatever else they look at, and they are the ones looking like fools right now for not getting in when the stock was cheap.. I first bought TSLA shares when it was below $50/share, and I had 0 experience with looking at any financials (I still don't really bother to look at them unless something is very wrong and then I'll hear about it on the news anyways). Your wagon train barreling into a bus made me chuckle that was a funny analogy, but based on what you're saying I can already tell you're very risk averse, and very scared of the market making a downward turn. Not saying you should always expect it to go up, but when the market is doing well you shouldn't be risking all your profits because you're scared the sky will fall tomorrow. The sky can always fall tomorrow, yet the DOW still goes up about 8% every year.. you gotta be willing to jump on opportunities as they happen and then be willing to jump ship when things start to go south. But if you're always playing scared you won't be able to see as high of returns. Idk maybe I'm just more of a gambling man, but I seem to be doing ok so far, I'm up 294% since I started investing, and I'm up over 50% so far in 2017. The reason I do market orders is because I know the stock is going to keep going up, so I would be losing out on profits if I set a limit order waiting for the stock to come down, only to watch the price continue to climb... as far as protecting profits I definitely like limit and stop on quote orders, but when I know a stock is on the rise I get in as quickly as I can, I don't play around with "oh I should wait for the price to come down so I can squeeze out a few more bucks in profit etc." that's a greedy way of looking at it in my opinion. If the stock is going up, jump in and ride the wave. So yeah, that's my take on it, I never bother to look at fundamentals I always go based on what companies are doing and whether they're innovating or not, and it has worked very well for me so far. [knock on wood cuz I am superstitious] (also please know I mean no disrespect here text always looks way more serious but read it as if I'm saying it with a calm and nice demeanor because that's how I am trying to say it :) I'll wait for your response, thanks!)
Thanks so much again for allowing me to explain options on your channel! Quick note for the viewers, I forgot to talk about "out of the money" so I had to put it in when editing so it shows up real quick but if you pause the video you can read it and hopefully it should make sense. I'm also a little behind on my vlog but will be uploading a ton of videos this week/weekend so you'll have lots of new content to watch :) Thanks again super grateful for you guys! Hope you like the video!
KRUTIK PATEL (7 months ago)
Dude you are the first guy on the you tube I have seen who has not blurred anything out!! the video was so helpful definitely subscribing your channel and going to check out your more video's.
Huy Anh Bùi (8 months ago)
Winner of a video, I been tryin to find out about "how to be an options trader" for a while now, and I think this has helped. Ever heard of - Liyabrie Options Operable - (do a google search ) ? Ive heard some extraordinary things about it and my cousin got amazing results with it.
Boss Life (8 months ago)
i just sign up to your site.
feliciamk10 (11 months ago)
Road to the 2 Comma Club Hello Justin! What broker do you use?
Ryan Scribner (1 year ago)
Special thanks to Justin from Road To The 2 Comma Club for making this options trading video for beginners. He is documenting his journey of building up a seven figure trading account. Make sure you subscribe to him and thank him for making this video! Justin's Channel: https://www.youtube.com/channel/UCrnF9GyCjvh0i47eD_XPRWg

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