The SAFEST Option Investing Strategy (Robinhood Tutorial)

In todays video I’m going to teach you how to use options as a safe and reliable investment strategy - learn how to trade options with Robinhood!

🔸HOW I MADE $1 MILLION INVESTING w/ OPTIONS:
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Today's Robinhood Investing Strategy:
Understanding LEAPS Options - LEAPS stands for Long-Term Equity Anticipation Securities. LEAPS generally are considered any option contract with an expiration date longer than 1 year. The idea of investing in LEAPS is to allow investors like you and me to benefit from the underlying stock moves while using LESS capital than you would by purchasing the SHARES alone. One options contract represents 100 shares of the company you invest it. Using options contracts to control 100 shares (rather than buying shares) can decrease your initial capital when investing.

Understanding DELTA in Options - The point of using the Greek Delta is to lower your risk when using options. Delta is defined as the expected change in an options price relative to $1 movements in the underlying stock price. So Delta is going to help us to determine how the option price will move. Delta values you’ll notice will go from 0 to +1 with calls. So for example, if we have an option with a delta of .25 then with every $1 that the stock price moves, the OPTIONS price will increase by $.25 cents. If we have a delta of .75 then for every $1 that the stock moves, the options price will increase by .75 cents. And going to a delta of 1 means that for every $1 the stock price moves, the option price will rise by $1 - and THIS means that when you have a delta of +1 this will equal the same movements as owning 100 shares of the stock. So if we want to MIRROR our investment of 100 shares in a company using options we want to buy a call option with a delta of +1 or as close to +1 as possible. To get that, generally we want to buy safe ITM options expiring more than 1 year out.

So to recap, if you want to mirror your investments your already making of 100 shares of your favorite company, use ITM LEAPS call options with a delta of +1 and you should be good to go.

NOTE: I am not a financial advisor - none of the above video is meant to be taken as investment advice. I am just showcasing MY own strategy and my investments should not be tried and duplicated based solely off the information in this video for risk of losing money.

[PandreaMoney]

THANK YOU - almost 10k already wow. Let me know in the comments what I should make videos on. Will put it on my list 🔥🙏🏻

[benjamindavidson]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

[MonicaAguilera]

I watched several YouTube videos on how to trade in the stock market but haven't made any head start because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands.

[jerrytrainer]

You left out a key detail about Delta, delta is dynamic it's not a static number. Delta changes as you highlighted based on how ITM or OTM the option is. The more in the money the call is, the higher the Delta. More out of the money, lower Delta. But Delta ALSO changes as the expiration date approaches. So as the expiration date approaches, if the options contract is ITM, Delta gets closer and closer to 1 every day. If it's OTM, it gets closer and closer to 0. Great video though :)

[Optionbeautiiny]

i’ve watched so many videos on this and you’re the first youtuber to make it make sense . thank you!!!

[Msmelissa-uw]

so big on individual stocks and it has worked well for me, i like your solid share on options investing but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. Thanks for sharing.

[monsoe]

I believe a system where you get to profit even as a newbie should be considered one of the safest ways to profit making on investing,
I know for a fact now nothing beats professionalism and expetise

[DavisBrownny]

Been watching, listening, and paying attention to all of predictions and forecasts since early Covid. He hasn't disappointed yet 👌

[oliverzohn]

I learned more in this than some of those three hour long videos about stock options

[stevensmiddlemass]

Stocks extended their year-to-date rally following the CPI report, with the S&P 500 last up 0.8% in afternoon trading. but I don't know if stocks will quickly rebound for a few weeks, .I am under pressure to grow my reserve of $250k.

[MaryPatricia-wrwj]

After a terrible 2022, shell-shocked financial backers have a lot to think about and losses to recover from. An expansion report and a wealth of other data did little to alter assumptions that the Central bank would likely keep raising interest rates regardless of whether the economy slows down. This implies that portfolios will experience more losses during the first quarter of 2023. I'm currently at a crossroads deciding whether to exchange my $250k security/stock portfolio; how might the continuous market volatility work to my advantage?

[ZacsMoneyFAQs]

Great video! I'm really enjoying these, Options are becoming much easier to understand now. I like the way you explain things. I'm excited for the next video!

[veramonique]

Having a dynamic strategy cannot be overemphasized when trading forex. The best advice I could give to any forex trader is don’t trade if you don’t have a working strategy.

[milesanderson]

@pandrea finance would love to hear some failure stories. As you know you can learn a lot from mistakes and would love to hear some of the bad plays you have made and what you learned from them. Keep it up I dig these videos.

[PierceJPeterson]

Options trading doesn't always have to be very risky. Great video man!

[hteadx]

Good stuff! Subscribed. Only thing you might want to add is make sure when you pick a stock that there is enough trading volume to make the LEAPS liquid. You can also look at the bid ask spread. I'm currently stuck in a LEAPS that I'm up 45% but the closest bid would drop my gains to 25%.

[FAISAL.]

I saw your video with Andre and I was looking for your channel, so glad to find you sir.

[ZackFoster]

LEAPs are Great! Definitely a great intro to how Options can be utilized within a portfolio. Same with Covered Calls and Poor Man Covered Calls.

[evarlast]

best explanation of delta I've ever heard. Well done!

[elizabeths.]

I love Robin Hood. I do want to learn how to invest in options as safely as possible. Yes, I am hoping AMC squeezes again. If it doesn't, for me at least, it doesn't matter because I already got all of my money out and still have shares in it. Subscribed!