Top 7 Options Trading Principles - How To Trade Options

These options trading principles are centered around 3 things; probabilities, trade size, and theta/volatility. If you can understand these simple, yet commonly misguided principles, you'll be well on your way to generating consistent monthly income with options trading.

[Darthdeedee]

this stuff is awesome I'm subscribing, I asked you some questions before when I had no idea about the terminology but kept goggling various terminology and I get this now.

[vishaljmanwar]

thanks a lot....learnt a lot from this...i am an active options trader and initially lost a good amount of my capital..but now recovering slowly as mentioned in your video...by doing small trades and adding a little profit each day...good going...thanks a lot again for sharing this video.

[jacksprat]

Thanks.  I'm new to options and looking at some of the online presentations (especially the Greeks) just leaves me trying to figure out what the heck they're saying.  I like your style - not cluttering up  your points with sidebars off the sidebars that relate to something we haven't learned, but keeping the presentation clean, moving and building directly off the previous.

[Amerikka]

Thank you so much for your time and effort. I find it very helpful. I have just decided to learn how to trade options, say I'm a baby in this :) please recommend me where to begin, what to read, what to watch as a beginner and I'll be so thankful to you. I already am but the volume of my thanks will grow. Thanks in advance. You're the best!!!

[yesitsme]

Great info. I keep listening and reading options basics and each time I learn something new and helpful. Your teaching is simplistic and understandable. I have subscribed to your Youtube videos.

[eddiek]

you need to upload more videos. that's not enough for us. it's very helpful. Thank you. btw, people keep saying they make 3-5% monthly income for options trading. that's impossible to figure out. is it possible?

[prasannaganapathy]

your videos are providing great insights .. excellent work..Thanks a ton for sharing your knowledge

[Skydmig]

You are explaining this in a very good way. I'm actually personally pretty used to working with simple statistical methods and probability calculations, but I've never thought of visualizing volatility and probability distributions by overlaying the distribution on a horizontal axis.

Although on a completely different note, have you ever worked with Monte Carlo simulations for e.g. pricing of options or other options related models?

[stephenwoodleysr]

You are a Very Good Teacher, From one Teacher to another, Thanks its been very helpful, and i am here to learn all i can, I like the monthly fee. I am here to Learn all I can .Thanks for Taking the Time out To Teach Us.Stephen

[vijayraghav]

Great!! Simple and straight. No ads...Thanks.
I wanna discuss on 4th principle. In some other website I read if IV is high its good to sell the options and to buy if it is less. But going by your 50$ scrip example, I feel, even if we buy low IV stocks, the chances of getting profit is also very low. Am I right?

[atroche]

Awesome video. A must for anyone getting started in options.

[charlesneedham]

Hey guys, I'm a huge fan of your videos and recognize that this may be beyond the scope of this introduction to options, but how do you respond to the assertion that markets generally exhibit significantly more randomness than a standard distribution implies? I've heard it espoused that a security has infinite variance, and that prices are not normally distributed.

[_TheWatchers]

Excellent explanations! Happy Holidays & thank you! When your in a spread, to get out (not letting it expire) you have to manually close the spread with another closing spread contract? I get confused since your opening a contract of a call/put (to open) & another on the other end to put/call (to close) - I thought this automatically closes the trade if the underlying stock or trade (asset/etf) reaches the direction your investing on (up for bullish / down for bearish)? 

[Daveortiz]

Great video, cleared up a lot of questions I had about options, I appreciate it!

[leetrask]

You mention liquid vs illiquid options: what would be a minimum acceptable liquidity to interest you in the option (do you have set minimums)?  Do you focus more on  volume vs open interest?  Thanks in advance!

[rnalumachu]

Super explanations ! Thanks for all the videos. One thought I have is, for a non volatile and side ways moving stock, is it a good option to sell the call at current strike price and make money with the theta factor? Would that work most of the times?

[MPS]

I agree with most of the concepts in this video, but the market is not 100% random. If you can infer some bias in the market I think you could definitely skew the curve in your favor a bit more.

[DC-kigl]

Great video, easy to follow and informative. What licenses are needed to solicit these types of trades? Is it a 7 and 65? How much are you paying in commissions per trade and how many of these trades do you need to make before you start making some money?

[karbbenefits]

Thanks for your posts. I find your videos to be very helpful. You do a great job breaking down the material. I was interested in your thought on long calls extending over a year in BABA, APPL, AMZN. Stocks with great growth potential. If delta is above 560?

[vijayraghav]

Hey Kirk one more Q. I am looking out for few options strategy in front of some big news (say like parliament election and its results). Here in India we have elections 7th April through May 17th. May 29th is the futures expiry day. In between there will be around 4-6 exit polls for different states. How to play safe and cash this the big event?
Can you suggest any of your videos for this type of month long event? or can you present one new one? Am sure, there will be a lot many guys who are looking for such ideas.
Thanks in advance!!