Stock Options Trading 101 [The ULTIMATE Beginner's Guide]

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In this options trading video, you’re going to learn the most essential options trading concepts you need to understand as a beginner.

We’ll cover each topic in-depth and provide examples to convey each concept intuitively:

1) Buying Call Options
2) Buying Put Options
3) Selling Call Options
4) Selling Put Options
5) Why Do Option Prices Change?
6) Intrinsic/Extrinsic Value & Time Decay
7) Exercise & Assignment
8) What happens when an option expires?

And much more.

Additionally, you’ll be exposed to the tastyworks trading platform during many of the examples so you can see each concept applied to the real world.

After this video, you will have a deep understanding of core options concepts, which will lay a solid foundation for you as an options trader.

=== Additional Videos to Watch ===

Intrinsic & Extrinsic Value: https://youtu.be/IUnBPMEXK30

Option Exercise & Assignment Explained: https://youtu.be/jFGzRCze-ds

Options Expiration Explained: https://youtu.be/BDLevympTzA

Extrinsic Value/Time Decay: https://youtu.be/pyqEJID_zOw

Join the Conversation

20 Comments

  1. Man this video was great. I started learning last week and have spent hours and hours reading and watching videos, which left me with a lot of questions but this video cleared up so many things and was payed out almost perfect. Great, great content. Definitely going to check out the rest of your videos. Thank you so much.

  2. Great video! I'm still working through it, but thought I'd ask a question as it came to mind. And feel free to just tell me the answer is later in the video if that's the case. But why would someone buy a put option in the first place if they would have to pay more for than the stock price?

    (I'm a newbie trying grasp the concepts.)

    Much thanks!

  3. 49:20 Hi , Chris, can you explain here. Why the risk is not high if seller is assignen? and you said the risk is the same as if you have the option? didn't understand what you mean. also you said at the end of the day you can close the stock position and get rid of it, please give a concrete example that will be really helpful , thank you!

  4. can someone please explain the loss potential on puts and calls, if the stock price goes to 140 as a put and you bought it at 165 shouldn’t the put be worth more? So why are you losing money?

  5. thank you so much for this video have watched 2 times now this week and will keep doing so when I start to trade options!! <3

  6. TOTAL beginner here. With the simple example illustrated at around 2:42. Let's say your option works as desired and you get to buy the shares at $2, or $15, below their current value. What then? All you have is a stock that you bought at a discount. Now you own the shares. What do you do with the shares now? Do you immediately sell to realize that profit?

  7. First thank you very much for sharing this.
    when options are exercised, traders are end up with stocks or forced to sell stocks. short selling make it complex. how it works in practice, when option traders are forced to short stocks can you make a video about this? thank you! I already opened a tastyworks account and then saw your advertisement. Tastyworks is good platform i heard this from experienced traders

  8. Didn't really understand much of this. It was going way too fast for me. The way you were explaining it seemed as though you expected us to already know a lot of this information. But I didn't know what the heck you were talking about and yes, my head was starting to hurt.

  9. Also you went over exercising the option multiple times. Instead you should have just stuck to selling the option. You made this unnecessarily complicated.

  10. Your moving text is irritating. This was suppose to be "Beginners Guide". You should have stuck to buying and selling calls and puts. You made it unnecessarily complicated.

  11. if you want to buy puts you are betting that the stock price would go down… So at 14:00, if the current FB price is $165, why would you buy a put option at a strike price of $200?????? If I want to bet against facebook then i will bet that the price will go down to 160, or 155, not go up to 200… I'm confused now.

  12. I already opened a tastyworks account and then I found your channel, can I also get the free course? I am interested in the practical side. my major is investments and financial market in unief

  13. I'm still a bit confused, when buying calls what are you actually paying? For example with the facebook call of 100 I believe selling at 51.70 are you paying 51.70 to buy the call and then an additional 10,000 when and if you decide to exercise that call?

  14. Got a question, I saw someone short sell a call option… Why wouldn't that person just buy a put? What is the difference

  15. I like that you use the trade page to demonstrate throughout. My initial training was an 8 video series of some 4 hours, and it went into considerable detail, but you cover most of the same material in a quarter of the time with more meaningful and memorable graphics. And even though it's pretty much the same material covered in the 8 videos, having it explained again only helps bring it all home. Thanks.

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