Options Trading for Beginners (WITH DETAILED EXAMPLES)

In this video, I'm going to explain calls and puts. I'll explain what they are and how they work, plus show you lots of examples so you can really understand. By the end of this video you will have a solid understanding of what is a call option, and what is a put option and what to do with them.

TIMESTAMPS:
0:01:20 - Difference between stocks vs. options
0:08:40 - How a call option works
0:10:28 - What happens to the BUYER of a call option if stock goes UP (in-the-money)
0:12:10 - What happens to the SELLER of a call option if stock goes UP (in-the-money)
0:13:38 - What happens to the BUYER of a call option if stock goes DOWN (out-of-the-money)
0:14:35 - What happens to the SELLER of a call option if stock goes DOWN (out-of-the-money)
0:16:13 - How a put option works
0:17:38 - What happens to the BUYER of a put option if stock goes DOWN (in-the-money)
0:19:30 - What happens to the SELLER of a put option if stock goes DOWN (in-the-money)
0:20:48 - What happens to the BUYER of a put option if stock goes UP (out-of-the-money)
0:21:23 - What happens to the SELLER of a put option if stock goes UP (out-of-the-money)
0:22:43 - Summary of calls vs. puts
0:24:18 - The contract multiplier
0:23:20 - How to buy/sell options (the options chain)
0:25:15 - Summary & review

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***THINGS MENTIONED IN THIS VIDEO! 👀***

💫 My $400/Day Side Hustle

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***BOOKS I RECOMMEND 📚***

I Will Teach You to Be Rich (hilarious how-to book on personal finance for millennials)

The Little Book of Common Sense Investing (Jack Bogle's classic advice on index funds)

InvestED (step-by-step, millennial-friendly advice on how to pick stocks like Warren Buffett)

Unshakeable (this book = courage. blast ALL the fears & misconceptions you have about investing)

Rich Dad Poor Dad (#1 selling personal finance book of all time... need I say more?)

Think and Grow Rich (the ultimate book on money mindset and wealth consciousness)

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***MY FAVORITE MONEY TOOLS 🖤***

YNAB (I literally can't live without this budgeting app, so obsessed)

Wise (like Venmo but for international currencies - I use this app a LOT for my life in Mexico)

Ledger Nano S (crypto storage hardware wallet, because "Not Your Keys, Not Your Crypto"!):

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DISCLAIMERS & DISCLOSURES ❤

This content is for education and entertainment purposes only. Rose does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

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SAY HI ON SOCIAL! 👋🏼

[tonymark]

I'm only 7:30mins into this and it's already making more sense than a lot of the videos on options I've watched. Great job!

[remplidefeux]

I feel like I knew half of that already, but it was all just a jumbled mess of disorganized factoids. You absolutely took all of that, organized it correctly, corrected some misconceptions I had, and then added more and fleshed it all out together. You have a gift for teaching.

[chickencheeks]

This the first time I didn't fall asleep watching a video on options trading. Can't wait to see your other videos. Thank you so much.

[anneb]

The way you explained this made it so digestible. Trust me, I paused and rewind this video a million times but I finally get it. Thank you Rose!! ❤️

[christiangibbs]

this is the first time someone has explained this in a step by step digestible manner that makes sense on first viewing. Thank you!

[MarcelMcGowan]

just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.

[TheMpe]

Rose, I’ve finally found somebody who can actually breakdown option trading concept and TEACH it well and easy to understand. You’re a great teacher. Can’t say the same for the other videos I’ve checked out. They are all over the place trying to explain option trading, as a result, they make option trading even more confusing. Keep it up and thank you.

[terriwright]

Great video! Love that you talk in simplistic language that makes it understandable for those of us who have others things to do and cant spend excessive time studying this. Thank you!

[TazIWonder]

It took me 1 hour to begin to understand call options, using a Fortune 500's internship-sponsored textbook. BUT it only took me 7 minutes to fully understand the same thing in this video. You did above and beyond making charts, explaining details, providing examples, and pointing out comparisons. Thank you so much.

[jamesroberts]

Seriously, Rose, you explain all of this WAY better than anyone else. Thank you!

[deidrahines]

I was putting off learning options until I stumbled on this video. Please accept my gratitudes.😊

[johnmathew]

I am a beginner at options trading. Tried a couple of paid classes and viewed many videos on YouTube. But the way you explain it is straightforward to understand. I will definitely be interested in watching more videos of yours, and I am sure I can be enlightened. Thank you so much

[mspennyisaac]

Thank you Rose. I've been looking for a more simplified explanation. The printable quizzes are an added bonus too and will definitely help during my learning process. It's hard for me to teach myself/learn without actual quizzes and print outs. You're the first person on youtube that I've come across that has printouts.

[kamaatakhify]

Finally a video that explains options in a clear and simple way. Thank you 👏👏👏

[spaceglitter]

I’ve studied options before and have attempted watching numerous videos and always tap out early. You’re wonderful at explaining and simplifying! I feel like I am actually wrapping my head around it now. Thank you!!!

[dreamysleepyzzz]

Out of all the tutorial video i have searched and watched on youtube that i did not subscribe but only giving likes, this is the first video that i not only liked, but also subscribed for such a clear big picture and concept with visualization that just makes my professor wasted his entire 3 hours of teaching in the class and we didn't even understand that much details compare to what Mrs.Rose said. like it is insanely clear and make so much sense that i laughed out and cried out during watching half way through the video. i am studying A one-step binomial model but i forgot some of the fundamental things on options. Thank you so so so much.

[helloken]

This was fantastically explained! One of the best videos I have ever seen on explaining options! I can tell you put a lot of work into it.

[daphenernorwood]

Taking the SIE exam soon and this is the best explanation I’ve seen so far. Very easy to understand. Thank you so much.

[terrysummer]

The Justin/Jacklyn example is the best explanation of a call buyer/seller transaction I have seen on YouTube to date. Terrific video!

[ms]

Rose this is one of the best videos on Call & Put Options I have come across. I have always loved your content and the way you explain complex concepts in more simplified manner. Thank you for doing what you are doing and sharing your amazing journey!! Keep up great work and keep making excellent videos. :)