Options Trading: Understanding Option Prices

Sky View Trading https://skyviewtrading.com/ 3 FREE TRADING LESSONS | https://www.skyviewtrading.com/free-lessons/

Options are priced based on three elements of the underlying stock.

1. Time
2. Price
3. Volatility

Watch this video to fully understand each of these three elements that make up option prices.

Adam Thomas
www.skyviewtrading.com

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Sky View Trading https://skyviewtrading.com/
Sky View Trading https://skyviewtrading.com/
Sky View Trading https://skyviewtrading.com/

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20 Comments

  1. Hey everyone! For those of you asking for more content, we put together a free "mini" options trading course which goes into quite a bit more detail on why we trade options over stocks. You'll also learn more about our trading edge and see us open a live options trade. If you're interested, check it out here – https://skyviewtrading.com/free-lessons

  2. Stock market controls a huge part of my passive income flow, where I invest big and profits even bigger courtesy of my financial broker Denis Mark

  3. it will be wise to buy longer term options like a LEAPs to give the underlying more 'room' and time to move ITM… totally agree, most short term option traders are 'killed' by time decay …?

  4. If you Ain’t investing That’s on you. But all I’ll say is u can always start. But u won’t be able to make back the gains you missed out on. So nows the time to join our Group. We make money in any type of market Condition. Special Deal of lifetime membership 400$ and the normal 50$ a month. Green week Everyweek. Questions or wanna join message me on Insta @SlayuhGG

  5. I really need help understanding buying options in the money. If you buy an option in the money can't you just exercise it right away and be profitable???

  6. Hey
    Very informative video. i have a question

    what if I short Sell Call 29 MAY for 3.5 USD while price is USD 27 Brl on 21st March 2020 .But the price goes down to 21 USD during the trading and the price of the option i short sell earlier comes down to 2.5 USD what if i close my position at this point am i gona earn the difference of 3.5 and 2.5 USD which is Dollar 1? or what can you explain plz.

  7. hey ,if anyone else wants to discover option trading basics try Saankramer Increasing Budget System (just google it )?

    Ive heard some super things about it and my colleague got great success with it.

  8. I think the insurance analogy is misleading because we're talking about a casino/betting game here. I wish we'd be more honest about it.

  9. A really good introductory video, it's essential beginner's have the basic knowledge of the option trade before engaging. I have been involved in option trading for the past five months and has manage to stay profitable courtesy of Eric Grinwis a professional who assist me with my trades.

  10. A call is in the money at a higher price than the stock price…. $125 call is in the money at 125.50+

  11. Great video but could be better. Because the strike price is the one staying the same, you should have inverted it’s place w stock price for newcomers to understand. That graph is confusing as it seems the strike price is a variable and you have to use reverse thinking to understand it.

  12. I really enjoy trading Options , but before one can get good @ options ,One has to know how to read a simple line chart , and trade options at the resistance lvl's ,typically i only trade options in Nvidia (nvda) with round trips up to 40 times a day and i trade call and puts at the same time playing both sides averaging down as need and i try to stay @ 2 weeks out….

  13. Newbie question… I cant find the answer anywhere. So a put option allows you to sell the stocks at the strike price. When a put option expires ITM, how do I exercise the selling part when I dont even own the stocks itself? I was hoping that it automatically purchases the 100 stock at market price, then sells to the other party at the strike price.

  14. if anyone here plans on creating a robinhood account, hook your boy up with a free stock by using my referral join dot robinhood dot com slash roberth10135

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