Correction: At 4:20, the graph in the top left-hand corner is slightly off; for total return, the curve should not intercept at (30,0), but rather should be shifted slightly to the left so that the bend in the line occurs at (30,-2). Sorry for the blunder.
Option Pricing Factors:
– Underlying stock price (higher = higher call premium, lower put premium)
– Underlying stock price volatility [expected] (higher = higher option premium)
– Underlying stock dividends (higher = lower call premium, higher put premium)
– Option’s strike price (higher = lower call premium, higher put premium)
– Time until expiration (longer = higher option premium)
– Interest rates (higher = higher call premium, lower put premium)
Intro/Outro Music: https://www.bensound.com/royalty-free-music
Episode Music: http://freemusicarchive.org/music/Podington_Bear/
DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution. Richard Coffin is not registered to provide investment advice and as such does not provide recommendations on The Plain Bagel – those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers.
Happy Friday everyone!
Have you ever used stock options, or do you prefer sticking to traditional investments? Let me know!
So you understand options pretty well i see.
Why the fuck ain't I understanding this????
"Pretty self-explanatory…"
Makes 10 minute youtube video…
Brilliant video – really clear and well presented. Gotta be one of the best I have seen. Yes – a little fast moving for a beginner, but I loved it
You talk to fast for me
For some reason he reminds me of an actuary .
TLDR, its just legal gambling in the stock market
Buying options is way more risky.. If you buy options you always lose in the end.. The only reliable way by making money is selling premium. But this only should be done by people that know what they do. Vertical credit spreads an covered calls is way to start for beginners.
This was SUPER GOOD!
This is the best explanation in entire www !!!
thanks for the video. fantastic production.
but why make it so complicated? granted the subject matter itself IS complicated but you could explain it better, making it simpler. dont you agree?
From what I got,
So there is a stock that is $30. You called that it’s going to be $32 by June 14th. You get to buy or deposit 100 shares of that stock at .10 each or $100 total. When the expiration date comes (June 14th) and if it is $32 or higher. You get the chance to by that 100 shares of that stock at $32 EACH as the “strike” price? However, if your call does not reach $32, You lose your $100? Am I right?
I just can't get this shit through my head, I daytrade stocks and this just doesn't make sense to me.
Great explanation
boi this went over my head… and it doesnt help that I am not a native English speaker 😀
What if the stock hits the call strike price but then quickly reverses direction and dips below the strike price? Is it still considered in the money?
What happens if I buy a call option and it hit my strike price on the expiration date?
Do I have to buy the $100 shares?
If so , what if I do not have money to buy the $100 shares?
You are too fast
now, I'm more confused lol