Options Trading for beginners. In this video I discuss a lot of the basics when it comes to trading stock options contracts. There are a lot of key terms to know when it comes to trading stock options and it can take a while to get comfortable with them to the point that you will be comfortable to trade options contracts. I cover all of the basic fundamentals of options trading in this video. What is a call option? What is a put option? What is extrinsic value? What is intrinsic value? When is an options contract in the money (ITM)? When is an options contract out of the money (OTM)? In this video I will go in depth and explain all of the important and key terms you need to know and understand to trade options successfully. I would also recommend watching this video in a full a few times if you are new to options trading. Also I would check out other educational videos on youtube from other trading channels until you get a firm grip on what options trading is and how options trading works. After you have a good grasp on the key components of options trading I would definitely recommend using paper money to trade options first so you can learn how to open trades, how to adjust trades, and also how to close options trades. Using paper money is a great way to test out a strategy before risking your hard earned cash on options trading. In this video we will cover the following sections: 2:20 What are options contracts? 4:28 What is a call option? 8:29 What is a put option? 12:30 What does out of the money mean (OTM)? 13:35 What does in the money mean (ITM)? 14:30 What is intrinsic value? 15:30 What is extrinsic value? 21:30 What is exercise when it comes to options trading? 28:20 What is assignment when it comes to options trading? 31:40 What is Delta when it comes to the options Greeks? 37:15 What is Gamma when it comes to the options Greeks? 39:12 What is Theta when it comes to the options Greeks? 41:50 What is Vega when it comes to the options Greeks? I hope after you watched this video that you have a better idea of all of the basic components of options trading. If you have any questions or comments please leave them in the comments section of this video.
