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TVS 018 – Intro to Options Trading

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TVS 018 – Intro to Options Trading

Welcome back to another episode of The Vampire Squid! Today, we're going to be talking about trading options. For compliance reasons, please note that "Today’s episode does not con ...

Welcome back to another episode of The Vampire Squid! Today, we’re going to be talking about trading options. For compliance reasons, please note that “Today’s episode does not condone or promote the trading of any single stock equities. The content in today’s episode are for educational purposes only and I am speaking on behalf of myself without further representation.”

Also, shout to Val and Geoff who contributed $100 and $20 per month respectively, you guys rock :)!

  1. What are options?
    • Call Options
    • Put Options
  2. What comprises the value of an option?
    • Underlying stock value
    • Time Value
      • Including Volatility
  3. What are Strike Prices, Expiration dates, and premiums on Options
    • Examples
  4. How to actually trade options
    • Margin account
    • Selling a naked call option
    • Selling a covered call option
    • Strangles, straddles, butterflies, etc. that we will cover in another episode
  5. Power of Options
    • Trading option example vs. purchasing underlying stock
  6. Things I wish I knew before trading options
    • People don’t usually exercise the option contract
    • Trading options is really hard
    • Getting direction correct but still losing money due to time decay
    • Never trading over 5% of your portfolio in any single option
  7. Conclusions

As always, please let me know if you have any questions, comments, or suggestions. Email me directly at alan@thevampiresquid.com or on the contact form. Also, please subscribe to my facebook page for live updates facebook.com/thevampiresquid. Also follow me on Quora at https://www.quora.com/profile/Alan-Li-1. To support us check us out at Patreon https://www.patreon.com/thevampiresquid

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