Selling Options 101: Learn The SECRET Strategy скачать в хорошем качестве

Selling Options 101: Learn The SECRET Strategy

How to sell options to make money - today we learn the basics of option selling and the strategies I use to make easy consistent profit. 🔸GET A FREE STOCK w/ PUBLIC.com : https://pblc.co/pandreafinance 🔸FREE Share of Lucid w/ Moomoo (deposit $100): https://j.moomoo.com/007xo6 🔸Get up to $250 of Crypto w/ BlockFi: https://blockfi.mxuy67.net/n1yXjR 🔸Earn Crypto w/ Coinbase: https://coinbase-consumer.sjv.io/oeOBze MY STUFF Follow me on Instagram:   / alexpandrea   How I Made $1 Million w/ Options:    • How I Made $1 Million Investing with Optio...   8 Trading Hacks To Make More Money!!:    • 8 Trading Hacks to Make More Money!!   Please subscribe to my channel:    / pandreafinance   Today’s video will focus on the MOST important thing you need to learn, which is how to collect the most amount of premium possible - we will learn the basic concepts and strategies of how to sell options like a professional even as a beginner. We will learn implied volatility and probability of ITM - you CANNOT just jump into selling options without learning this. Options are broken up into CALLS and PUTS - and you can either SELL THEM or BUY THEM. You can buy a call, you can sell a call. You can buy a put, you can sell a put. It’s very important to understand what it actually means when buying and selling these contracts - a lot of people have a over simplified definition of what all these mean. If you are the type of person that simply says “Buy a call if you think its going up” and “Buy a put if you think its going down” then you’re already a step behind. (Detailed definitions in video) Now let’s take a look at what happens step by step when we SELL an option. It happens in 4 steps. 1. Selling the option - First thing is we pick an option to sell and then we sell it - Simple and straight forward. Once you sell the contract you now have entered that contract.. 2. Collecting a premium - because you sold that contract the buyer will pay you for that transaction. So you are collecting a premium that goes into your brokerage account right away. That money is now yours. 3. Buying back the contract- To close out the position you MUST BUY BACK the contract. So when you BUY something, you need to sell it to exit the position right? Well same thing for when you sell - you have to close the position by doing the opposite of what you did to open the position. In this case you’ll need to buy back the contract. 4. Hope the option expires worthless - the whole idea of selling an option is to sell at a high price and buy it back at a lower price - keeping the profit in between. The perfect scenario would be if that contract expires worthless - or is worth $0.00 and keep the entire premium. WHAT MAKES A PREMIUM HIGH OR LOW? (See live examples in video) 1. Expiration date - see the premium of an option is broken up into intrinsic and extrinsic value. The intrinsic value is what the option will always be worth at expiration and that doesn’t change - but the extrinsic value is also known as TIME value because time plays a role in its value. So the more TIME you have in a contract - the more extrinsic value you will have, which equals higher premium. 2. How far ITM or OTM the option is - Options that are ITM will always have more value because they already reached the strike price - and the further you go OTM the less premium you will get. The simple reason is that it is much more likely for an option at the money or close to at the money to expire ITM and its less likely for a far out strike price to reach ITM - so far out strike prices will be very cheap and not worth much. Of course when selling options we ONLY want to sell OTM options. 3. Implied Volatility - The last thing that determines premium prices is the Implied Volatility - Implied volatility is the market's forecast of the likely movement in a stock’s price. Volatility is how up and down the stock moves - and we say implied because it’s just a forecast - an estimate- of how much its likely to move. Probability of success in a trade will make or break the trade. You must understand this part if you want to sell options and actually make money. Now any option chain will have the probability of success listed out right there in percentage terms. Probability of success and option prices follow the Normal Distribution Curve (Full breakdown in video) HOW TO SET UP THE PERFECT TRADE: Step 1: Sell options when IV is high so you can collect a larger premium Step 2: (See video) Step 3: (See Video) I am not a financial advisor - none of the above video is meant to be taken as investment advice. I am just showcasing MY own strategy and my investments should not be tried and duplicated based solely off the information in this video for risk of losing money. PUBLIC.com Disclaimer: "Offer valid for U.S. residents 18+ and subject to account approval. Open To The Public Investing is a member of FINRA & SIPC. Regulatory and firm fees apply. See Public.com/disclosures/."