Options Trading For Beginners | Step By Step

Learn how to trade options with this step by step guide for beginners

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Andrei Jikh
4132 S. Rainbow Blvd # 270
Las Vegas, NV 89103

Options trading is one of the most popular investing strategies in the world. Options are not for everyone but they can be used safely to make a few extra percentage points per year while remaining safe. Here are 3 top options trading investment strategies for beginners - step by step.

WHAT ARE OPTIONS?
Options are contracts that represent underlying equities like stocks. One option represents control over 100 shares.

HOW ARE OPTIONS DIFFERENT THAN STOCKS?
Options have a lot more "options" than just buying and selling, and unlike stocks, options have an expiration date.

WHY USE OPTIONS?
Options allow you to leverage and get control over more stocks for less money.

3 BASIC FUNDAMENTALS:
There are 3 things to options you have to understand.
1. Strike Price: The potential future value of the underlying stock. This can be either lower or higher than the current equity value (stock price).
2. Expiration Date: The date at which the contract is no longer valid.
3. Premium: the payment made by buyers to sellers of options.

PUTS AND CALLS:
There are only two forms of options - puts and calls. You can buy buy and sell both puts and calls. Here's what that means:

Buying a Call - this is a bullish sentiment (you think the stock is going up) beyond the strike price, before the expiration date. You have the option to buy shares at the strike price on or before that particular date. You pay a premium to buy this option contract.

Buying a Put - this is a bearish sentiment (you think the stock is going down) lower than the strike price before the expiration date. You have the option to sell a stock at the strike price on or before a particular date. You pay a premium to buy this option contract.

Selling a Call - this is the obligation to sell stock at a certain strike price by the expiration date. You make money by collecting a premium when you sell this call option. If the price of the stock does NOT reach the strike price you do NOT have to sell the stock and you keep the premium.

Selling a Put - this is the obligation to buy stock at a certain price by the expiration date. You collect premium for selling this put option. If the stock price does NOT reach the strike price you do not have to buy the stock and you keep the premium.

3 STRATEGIES:
There are 3 simple strategies you can use to make money that are relatively safe (safer than some of the other options you can do with options).

1. Selling Covered Calls
2. Selling Puts
3. LEAPS

If you watch this video all the way through, you'll learn a lot and hopefully make some money. Enjoy, invest, and have fun!

*None of this is meant to be construed as investment advice, it's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.

[Pambegay]

This time last year I considered getting into options without much knowledge and decided to have a consultation with a fiduciary, and it was incredibly insightful. One year down in, I truly cannot stress enough how helpful experts in this field are! Good video brother!

[AgWhatsUp]

This is BY FAR the best video I’ve seen on explaining options….

…and I still don’t understand it

[Kmillions]

I’m trying to get into it but it sounds like you only get the premium back so you get back what you put in? How are we making a profit?

[collinsdutch]

I don't know who needs to hear this you've got to stop saving money invest some part of it if you really want financial freedom.

[j.mney]

Wow, $1.2M in two years is incredible!!!! Congrats Alex!

[emanlosangeles]

WOW! The only thing I learned was that the "J" button goes back 10 seconds. Thanks Andrei!

[stjepanhauser]

Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $260K for sometime now, my major challenge is not knowing the best entry and exit strategies... I would greatly appreciate any suggestions.

[dzhere]

I never comment under these types of videos because usually the person doesn’t explain it in layman’s terms for beginners like me, however you’re the exception. This was like a crash course for beginners in terms and explanations that makes sense to me. Thank you to you both! Don’t know how much y’all just helped me.

[miaharper]

Stocks are bought, and the investor sells call options on the same stock. The number of shares you bought should be identical to the number of call options contracts you sold.

[binagital]

My advice is not to enter the market without basic knowledge. trading is a zero sum game. It’s complex, so you need experienced hands to understand the market trends and different algorithm. What a party wins, the other loses. So the competition is fierce here.i did not know all this thats why i was losing all those times . always look for assistance for a superior it goes a long way and save you a lot of time

[brandonfinley]

This answered a lot great video more video like this would help me get comfortable enough to do my first option !

[OptionsASAP]

Excellent video -- we need more like this to help beginners get familiar with options in a friendly and informative manner. Its funny and insightful. 💯

[ogrehaslayers]

I’ve been waiting for this one! Excited!!! 👍

[dallasspainhower]

I've watched a couple dozen options videos and this has by far done the best job explaining how they work

[liamjohn]

Channeling funds to the right ventures can send anyone on their way to leaving the workforce early, retirement isn’t in age, it’s in financial numbers.

[jayroscoe]

I can unequivocally say that option trading is one of the most profitable and lucrative business for every investors with the right expert.

[realfinalsay]

Amazing how this channel has matured. First we only did Dividends, then crypto, and now options!

[jct]

Thank GOD for this video. You’re the man, Andre🔥

[vision]

Omfg ! All these years I finally understand the basics of options !! I appreciate the way you two rephrased the definition in basic street terms !!!. Thank you !

[saimirgurakuqi]

Starting early is the best way of getting ahead to build wealth, investing remains a priority. The stock market has plenty of opportunities to earn a decent payouts, with the right skills and proper understanding of how the market works