Stock Options Explained

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)

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.

[ThePlainBagel]

Happy Friday everyone!

Have you ever used stock options, or do you prefer sticking to traditional investments? Let me know!

[BodyworkASMR]

Next please upload “stock options explained, explained”.

[EddyFisico]

I'm a physicist and I had trouble following, now I understand how people feel about math.

[dylant]

It's important to note that options contracts come in terms of 100 shares. Really pumps up the possible gains and losses more than a beginner would expect!

[O]

I've made an absurd amount of money in options. I've also lost it all because of options. Lol

[JamesJoe-ukpj]

I learned that the stock market was a rich man's game (yes, grandparents lost it all back then and preached that forever) but I've been around long enough to really taste how great it can be. To be profitable, with inflation at 6.1% These are surely desperate times, but in my opinion, there is no market condition that a good financial advisor cannot navigate, especially those that have existed since the crisis of 2008 and before.

[chimphead]

me watching my grandmas life savings disappear on a "well calculated" yolo

[MP-cfpr]

I jumped forward to the end of the video and am now qualified to YOLO my little brothers college fund.

✋ 💎 🤚 🚀

[salinascgs]

My hunt for more options explainer videos continues after watching this one.

[Allen_lena]

As soon as I saw the box spread I knew where the "It literally can't go tits up, I've done the math" came from. This was the math.

[Ezm]

I need a tutorial that explains it to actual beginner dummies, not like an experienced stock broker lol

[tiredleeches]

Very informative, I still struggle comprehending how it all works but this is the best video I've seen yet about it

[maxwellschaphorst]

This is the first time I've actually understood puts & calls, so for what it's worth you're the best explainer on Youtube, and I've been trying to understand this for a while.

[mteevie]

I'm more confused now after watching the video

[menumlor]

I love how you explained this much simpler to us common folk who don't options trade on the daily.. It still requires more work to understand the complexity. This is the reason i subscribed.

[Abrin]

bought GME as my first stock -instantly down 80%. Pray for me.

[kishanshah]

A Tip for anyone watching - understand the definitions prior to watching the video - it'll help massively!

[sheepmellow]

This was one of the better breakdowns on options I've ever watched. Thanks Plain Bagel, you guys are really damn clear!

[kassandrarivera]

Your explanations are so easy to understand. Thank you!

[jasongao]

Your explanation helps me have a clear picture of options. Particularly the four curves, which are the most concise and precise demonstrations I’ve ever seen. Good work👍