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Videos uploaded by user “projectoption”
Implied Volatility Explained | Options Trading Concept
 
12:59
Implied volatility is one of the most important concepts to understand as an options trader. Implied volatility represents the option prices on a particular stock, which is an indication of the future stock price movements that the market is expecting. Stocks with more expensive option prices have higher implied volatility, indicating larger expected price changes in the future. On the other hand, stocks with cheaper option prices have lower implied volatility, indicating smaller expected price changes in the future. Additionally, implied volatility can be used to calculate the one standard deviation expected stock price ranges over any time frame. ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 27184 projectoption
Call Option & Put Option Basics | Options Trading For Beginners
 
12:05
Quickly learn the basics of call options and put options with our visual explanations and examples. Perfect for complete beginners! In addition to using basic examples, we've included real call and put performance visualizations to demonstrate how call options increase in price when the stock price increases, and fall when the stock price decreases. Regarding puts, we've included an example to demonstrate how put options increase in price when the stock price falls, and decrease in price when the stock price rises. On top of showing you how option prices change when the stock price changes, we explain why these movements in the option prices make sense intuitively. ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/ Music: The Only Girl - Silent Partner: https://youtu.be/kT_qHfoiEnQ
Views: 18428 projectoption
Vertical Spread Trading | When to Take Profits & Losses
 
14:28
When trading vertical spreads, when should you take profits or losses on your position? In this video, I'll discuss general guidelines for using risk/reward to determine appropriate times to take a profit or loss when trading debit or credit spreads. Since vertical spreads have limited profit potential, the decision to take profits is much easier than when you're trading "unlimited" profit potential options strategies such as long calls or long puts. On the other hand, vertical spreads also have limited loss potential, which means there's a point in which taking losses doesn't make sense. - - - - - - - - - - READ THE FULL GUIDE: https://www.projectoption.com/vertical-spreads-explained/ ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 10929 projectoption
Top 9 Options Trading Mistakes New Traders Make
 
08:32
Avoid These Options Trading Mistakes - Download Our FREE 7-Step Pre-Trade Checklist PDF: https://www.projectoption.com/free-pretrade-checklist There are many common options trading mistakes that traders of all levels make at some point, and that's completely understandable! The best way to learn is through real experience. Unfortunately, when it comes to trading options, mistakes mean money is lost. In this video, we'll discuss our picks for nine of the most common options trading mistakes that cause traders to lose money. By becoming aware of the mistakes new traders make, you'll be more prepared to avoid them in the future, and that brings you one step closer to becoming a more profitable options trader. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 4316 projectoption
Vertical Spread Options Strategies | The ULTIMATE Guide (11-Video Series)
 
03:35
Learn the vertical spread options strategies in this comprehensive 11-part video series! In this video, we start with a basic introduction to vertical spreads. A vertical spread is an options strategy that consists of one long option and one short option of the same time and in the same expiration cycle. For example, buying a call option with a strike price of $100 and selling another call option with a strike price of $110 (same expiration cycle) would create a 100/110 bull call spread. There are four vertical spread strategies. Two of them are considered debit spreads and two of them are considered credit spreads: 1. Bull Call Spread (call debit spread) 2. Bear Call Spread (call credit spread) 3. Bull Put Spread (put credit spread) 4. Bear Put Spread (put debit spread) In this ultimate guide, you'll learn: - Exactly how to set up the four vertical spreads - How each strategy makes or loses money - How time decay and changes in implied volatility impact the profitability of each strategy - How to select expiration cycles and strike prices when setting up each of the four spreads - When to take profits and losses when trading verticals The topics are covered in 11 videos, so be sure to watch every video to become a master of vertical spreads! - - - - - - - - - - READ THE FULL GUIDE: https://www.projectoption.com/vertical-spreads-explained/ ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com OUR COURSES: https://www.projectoption.com/options-trading-courses/
Views: 4119 projectoption
IV Rank vs. IV Percentile: Which is Better? | Measuring Implied Volatility
 
14:26
IV rank and IV percentile can both be used to gauge a stock's current level of implied volatility relative to its historical levels of implied volatility. Gauging a stock's implied volatility is not straightforward, especially when comparing the implied volatility of two stocks. For example, one stock's 30% implied volatility could be high, while another stock's 70% implied volatility could be low. How can we tell the difference? The answer is to use IV rank or IV percentile. In this video, you'll learn: 1. What IV rank and IV percentile represent. 2. How to calculate IV rank and IV percentile. 3. Why IV percentile serves as a better volatility reversion indicator. ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 4850 projectoption
Iron Condor Management Results from 71,417 Trades [STUDY]
 
20:24
Selling iron condors is a very common trading strategy among income investors, as the trade has limited loss potential and a high probability of making money. In this video, we examine 71,417 short iron condor trades in the S&P 500 to determine patterns related to managing the trades for profits or losses. More specifically, we test 16 different profit/loss iron condor management combinations and see which ones were the most profitable and the least profitable. We also adjust each approach for the estimated commissions to determine which management combinations are viable in the real world. Lastly, we filter all of the trades by the VIX level at the time of trade entry to determine the impact implied volatility has on the profitability of each iron condor management approach. READ FULL STUDY: https://www.projectoption.com/blog/iron-condor-management-study ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 18186 projectoption
Vertical Spread Trading: Implied Volatility & Profitability
 
10:11
Implied volatility plays a major role in profitability when trading vertical spreads. In this video, you'll learn how changes in implied volatility can help or hurt the performance of the four vertical spread strategies. More specifically, you'll learn why you want implied volatility to decrease when the stock price is moving in favor of your spread, and why you want implied volatility to increase when the stock moves against you. Many options educators teach this concept incorrectly, which is why correctly understanding this topic is so important. - - - - - - - - - - READ THE FULL GUIDE: https://www.projectoption.com/vertical-spreads-explained/ ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 2488 projectoption
Option Vega Explained (Best Guide) | Option Greeks for Beginners
 
08:57
Option vega represents an option's sensitivity to changes in implied volatility, which is also called "vega risk" or "volatility risk." As an option buyer or seller, you need to understand how an option's price is expected to change relative to implied volatility. One of the option Greeks, vega, tells us how an option's price is expected to change relative to 1% changes in implied volatility. In this video, you'll learn: 1. What an option's vega represents 2. Which options have the most exposure to implied volatility changes 3. Short-term vs. long-term vega 4. At-the-money vega vs. in-the-money and out-of-the-money vega ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 2372 projectoption
Options Trading Basics EXPLAINED (For Beginners)
 
20:13
Learning the basics of options trading can be very confusing at first, especially as a beginner. The video starts by discussing the benefit of trading options, which is the ability to leverage returns and potentially have lower loss potential compared to simply trading stocks. Then, we'll explain basic options trading concepts by walking through each concept and explaining them intuitively. We'll start by discussing the two options types: 1) Call Options 2) Put Options With each option type, we'll go through some hypothetical trade examples so you can understand scenarios when buying and selling calls and puts can be profitable, and when the trades will lose money. More specifically, why the option prices make complete sense based on where the stock price is relative to the option's strike price at expiration. If you'd like specific guides on each of the options strategies discussed in this video, check out the videos below: Long Call Strategy: https://youtu.be/vvAND3hDRwc Short Call Strategy: https://youtu.be/InMZhTY5n2s Long Put Strategy: https://youtu.be/k9uiYBQJfOs Short Put Strategy: https://youtu.be/RO0ezQEWXdM Options Trading for Beginners [PLAYLIST]: https://bit.ly/2qZ3mXs ============= Ultra-Competitive Commissions. Close Trades for Free.* $10 Commission-Cap Per Option Leg.** https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 2212 projectoption
Bull Put Spread Guide | Vertical Spread Option Strategies
 
11:27
The bull put spread is the last of the four vertical spread options strategies we've covered in this video series. The bull put spread is a bullish vertical spread constructed with put options. How to set up the trade: 1. Sell a put option 2. Buy another put option at a lower strike price (same quantity and expiration) In this video, we'll break down how the strategy makes or loses money by visualizing the expiration payoff diagram, as well as plotting the performance of a put spread over time using real option data. - - - - - - - - - - READ THE FULL GUIDE: https://www.projectoption.com/vertical-spreads-explained/ ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 3237 projectoption
Trading VIX Options: Top 3 Things to Know | Volatility Trading
 
16:33
VIX options are some of the most actively traded options in the market, with over 148 million contracts traded in 2016. There are certain things you need to know before trading VIX options: 1. How VIX options are not priced to the VIX Index, but to the matching VIX future. 2. How VIX options settle to a Special Opening Quotation under the ticker VRO. 3. How long-term VIX options are much less sensitive to changes in the VIX Index than short-term VIX options. ---- Ultra-Competitive Commissions. Close Trades for Free.* $10 Commission-Cap Per Option Leg.** https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 4684 projectoption
How Long Calendar Spreads Work (w/ Examples) | Options Trading Explained
 
09:20
Long calendar spreads (a.k.a. 'time spreads' or 'horizontal spreads') can be very confusing to understand at first. In this video, you'll learn exactly how long calendar spreads profit by seeing P/L visualizations of historical calendar spread components. The long calendar spread is constructed by selling an option and buying another option of the same type and strike price but in different expiration cycles. When traders buy calendar spreads, they're anticipating the stock price to stay near the spread's strike price as time passes. If that happens, the spread's price will increase, but why? In this video, you'll learn exactly why long calendar spreads profit when the stock price hovers around the strike price as time passes. ------------------------------------------ Why Calendar Spreads Are NOT Long Volatility Trades: https://youtu.be/WZk1qcsa-nc Ultra-Competitive Commissions. Close Trades for Free.* $10 Commission-Cap Per Option Leg.** https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 1995 projectoption
Implied Volatility Skew & Three Things it Can Tell You
 
16:40
Implied volatility represents the overall option prices on a particular stock. However, each option has its own unique price, and therefore its own implied volatility. Volatility skew refers to the inequality of out-of-the-money call and out-of-the-money put implied volatilities. In this video, you'll learn: 1. What implied volatility skew is 2. Which products tend to have upside or downside volatility skew 3. Three helpful pieces of information volatility skew can tell us You'll also see some examples and visualizations to help you understand implied volatility skew. ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 9042 projectoption
Debit Spreads | How to Select Strike Prices (Options Trading Tips)
 
13:34
With so many strike prices to choose from, how might you select strike prices when trading debit vertical spreads? To recap, two of the four vertical spreads are considered debit spreads because you pay a premium to enter the trade. The two debit spreads are the bull call spread, and bear put spread. In this video, we'll cover two common methods for choosing strike prices when trading debit spreads, as well as compare the pros and cons of each approach. While there's no single "optimal" way to choose strike prices, this video should help guide you towards more strategic strike price selection when buying call or put spreads. - - - - - - - - - - READ THE FULL GUIDE: https://www.projectoption.com/vertical-spreads-explained/ ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 4495 projectoption
Bear Call Spread Guide | Vertical Spread Option Strategies
 
10:00
Learn how to profit from stock market declines with the bear call spread (short call spread) options strategy. In this video, we'll cover exactly what the bear call spread is, how to set the trade up, and show examples of when the strategy makes money and loses money. Selling a call spread is a bearish strategy constructed with call options. How to set up the trade: 1. Sell a call option 2. Buy another call option at a higher strike price (same quantity and expiration) When you sell a call spread, you want the stock price to decrease, but it is still possible to make money if the stock price increases slightly. In this video, we'll break down how the strategy makes or loses money by visualizing the expiration payoff diagram, as well as plotting the performance of a short call spread over time using real option data. - - - - - - - - - - READ THE FULL GUIDE: https://www.projectoption.com/vertical-spreads-explained/ ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 3387 projectoption
VIX Index Explained | Options Trading Guide
 
13:25
The CBOE's VIX Index is one of the most commonly watched indices in the market, as it tracks the 30-day implied volatility of options on the S&P 500 Index (SPX). The VIX can be used to select strategies that are appropriate for that market environment, and also to calculate expected market ranges in the future. In this video, we show the relationship between the VIX Index and the S&P 500 Index (SPX), as well as historical VIX Index levels. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/ ---- VIX White Paper: https://www.cboe.com/micro/vix/vixwhite.pdf
Views: 4043 projectoption
Top 3 Credit Spread Option Strategies for Generating Income
 
26:24
Learn the Top 3 Credit Spread Option Strategies for Generating Income. In this video, we'll cover what credit spread option strategies are, and our top three picks for the most commonly used credit spreads. Credit spreads are very popular among those who trade options for income, as credit spreads can profit in more than one way (making them high probability trades). Additionally, the three credit spread strategies discussed in this video have limited loss potential, which means a losing trade won't break the bank if sized and managed properly. We use multiple examples to show you how to set up each strategy and show you historical trade examples using REAL option data to show you how each strategy profits. ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 19202 projectoption
Credit Spreads | How to Select Strike Prices (Options Trading Tips)
 
15:59
With so many strike prices to choose from, how might you select strike prices when trading credit spreads? Two of the four vertical spreads are considered credit spreads because you collect option premium when you enter the trade. The trade is entered for a "credit." The two credit spreads are the bear call spread, and bull put spread. In this video, we'll cover two common methods for choosing strike prices when trading credit spreads, as well as compare the pros and cons of each approach. While there's no single "optimal" way to choose strike prices, this video should help guide you towards more strategic strike price selection when selling call or put spreads. Additionally, you'll get an introduction to using delta when selecting strikes. - - - - - - - - - - READ THE FULL GUIDE: https://www.projectoption.com/vertical-spreads-explained/ ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 15088 projectoption
Long Call Options Strategy (Best Guide w/ Examples)
 
17:55
The long call option strategy (buying call options) is a very bullish strategy that consists of buying a call option on a stock that a trader believes will rise in price. In this video, you'll learn: 1. What are the characteristics of the long call strategy? 2. What does the expiration risk graph look like when buying calls? 3. What are the option Greek exposures of the long call option strategy? In addition, you'll see three real long call trade examples so you know exactly how the strategy performs in various stock market environments. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 4786 projectoption
Short Strangle Adjustments: Rolling Up the Short Put Options
 
11:31
Download the Rolling Research Infographic: https://www.projectoption.com/blog/short-strangle-adjustment-rolling-put-options | When trading short strangle option positions, you may need to make an adjustment as the stock price changes in one direction. In this video, we'll discuss the short strangle adjustment of rolling up the short put option. When selling strangles, your directional exposure will typically begin close to zero, as short strangles are usually structured as market-neutral trades. However, if the stock price starts to trend in one direction, you may need to make an adjustment to neutralize your directional risk. In this video, we'll cover how to "roll up" the short put option of the short strangle, which is one of the short strangle adjustments available to you when the stock price increases. You'll learn how rolling up the short put option benefits you in terms of maximum profitability and directional risk, as well as some of the downsides involved with the short strangle adjustment of rolling up the short put. By rolling up the short put options of a short strangle position, you will increase the option premium that you receive, which will "push" your upper breakeven point further above the stock price. Additionally, you will neutralize your position delta, which means you'll lose less money if the stock price continues to rise. However, that also means you'll make less money (or potentially lose money) if the stock price starts to fall after you roll down the call option. Lastly, you'll also have a lower probability of profit because rolling up the short puts narrows your range of profitability. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 2427 projectoption
Exercise and Assignment | Options Trading For Beginners
 
13:47
Understanding exercise and assignment is important for new options traders. In this video, we discuss both exercise and assignment in-depth. More specifically, you'll learn what happens calls and puts are exercised, and what happens to traders who are short those options. Additionally, you'll learn how extrinsic value is lost when an option is exercised, and how traders are chosen to be assigned on their short option positions. Lastly, you'll learn how to assess the likelihood of early assignment on a short option position. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/ ---- Music: You're No Help - Silent Partner https://youtu.be/wK6bwkuUYRo
Views: 2008 projectoption
Option Delta Explained (Best Guide) | Option Greeks for Beginners
 
12:35
The delta of an option can be used to gauge the directional risk or exposure of an option relative to changes in the stock price. In this video, you'll learn about the delta of an option through examples using real option data. More specifically, we'll talk about: 1. How an option's delta represents the option's expected price change relative to $1 changes in the stock price. 2. The difference between call and put option deltas. 3. How to use delta to gauge an option's directional risk exposure 4. The relationship between an option's strike price and delta. ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 6631 projectoption
SVXY & UVXY: BIG Changes Announced by ProShares
 
07:29
Two of the most common volatility trading products have been changed significantly by their issuer, ProShares. SVXY, the ProShares Short VIX Short-Term Futures ETF, has experienced a 50% decrease in its exposure to daily changes seen in the near-term VIX futures contracts. UVXY, the ProShares Ultra VIX Short-Term Futures ETF, has experienced a 25% decrease in its exposure to daily changes seen in the near-term VIX futures contracts. In this video, you'll learn how SVXY and UVXY previously tracked changes in the near-term VIX futures, and how they will track the same VIX Futures going forward. Additionally, you'll see a simulation of SVXY's past performance when using the new tracking objective outlined by ProShares. --------- Ultra-Competitive Commissions. Close Trades for Free.* $10 Commission-Cap Per Option Leg.** https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 1388 projectoption
Bull Put Spread Options Strategy (Best Guide w/ Examples)
 
20:52
The bull put spread (AKA "short put vertical spread" or "put credit spread") is a bullish strategy that consists of selling a put option while buying another put option at a lower strike price. The bull put spread has limited risk and profit potential. In this video, you'll learn: 1. What are the characteristics of the short put spread strategy? 2. What does the expiration risk graph look like for a bull put spread? 3. How do bull put spreads perform when the stock prices moves up, down, or sideways? In addition, you'll see three real bull put spread trade examples to demonstrate how the strategy performs relative to changes in the stock price. ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 7969 projectoption
Credit Spread Options Strategies Explained (Guide w/ Examples)
 
16:26
The two credit spread options trading strategies are very simple to understand and set up, but also extremely powerful. Credit spreads are very popular options strategies among income-driven traders, as they have a high probability of profit, have limited loss potential, and are easy to manage. In this video, we'll clearly explain what a credit spread is, how they are set up, and go through examples to show how they profit. Credit spreads can be constructed with all call options or put options. When constructed with all calls, the strategy is a call credit spread (sometimes called a 'bear' call spread since it's a bearish strategy). When constructed with all puts, the strategy is a put credit spread (sometimes called a 'bull put spread' since it's a bullish strategy). In this video, we cover two examples using historical option data to show you exactly how these two strategies make money and lose money. Lastly, we'll show you how to set up each strategy using the tastyworks trading platform. ====================== Learn More About tastyworks: https://www.projectoption.com/tastyworks/ Get a Free Options Trading Course ($247 Value): https://www.projectoption.com/free-options-trading-course/
Views: 1598 projectoption
Trading VIX Futures | Volatility Trading
 
12:53
Cboe VIX futures can be used to gain exposure to changes in S&P 500 implied volatility. However, there are things you need to know before trading VIX futures. In this video, you'll learn: 1. How VIX futures converge to the VIX Index as their settlement dates approach. 2. How buyers of VIX futures face losses when the VIX term structure is in contango. 3. How sellers of VIX futures face losses when the VIX term structure is in backwardation. 4. The contract multiplier and minimum tick value of a VIX futures contract. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 1981 projectoption
Vertical Spread Trading | Choosing an Expiration Cycle
 
09:08
When trading vertical spreads, choosing an expiration cycle is somewhat strategic. With so many expirations to choose from, which ones should you trade? In this video, you'll learn how short-term and long-term vertical spreads compare in terms of P/L when the stock moves to similar prices. More specifically, you'll learn that shorter-term vertical spreads can hit high profit levels more quickly when the stock price moves favorably. However, when the stock price moves against you, a short-term vertical spread will suffer larger losses than a longer-term vertical spread. We'll go through a few live examples using AAPL put spreads to demonstrate the concepts discussed in the video. After watching this video, you'll have a firm understanding of how selecting a short-term or long-term expiration cycle can make a difference in strategy performance. - - - - - - - - - - READ THE FULL GUIDE: https://www.projectoption.com/vertical-spreads-explained/ ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 1696 projectoption
Order Types: Market, Limit, GTC, Stop-Loss | Options Trading For Beginners
 
07:28
There are many order types available to us as stock and options traders. The primary order types are market orders, limit orders, good-til-canceled (GTC) orders, and stop-loss orders. In this video, we break down each of these four order types and provide examples of how they work. Additionally, we talk about the order type you should be using 95% of the time, and which order type to avoid. ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 4863 projectoption
VIX Term Structure Explained | Volatility Trading Concept
 
09:08
The VIX term structure (VIX futures curve) indicates the difference between near-term and long-term implied volatility. Understanding the VIX term structure is crucial for volatility traders because the shape of the VIX futures curve can be revealing about the performance of bullish or bearish volatility trades when the VIX futures curve remains in the same shape. In this video, you'll learn: 1. How VIX futures converge to the VIX Index as their settlement dates approach. 2. What happens to VIX futures and bullish volatility strategies when the VIX term structure is in contango. 3. What happens to VIX futures and bearish volatility strategies when the VIX term structure is in backwardation. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 1832 projectoption
Top 3 Options Trading Strategies for Beginners
 
24:27
https://www.projectoption.com - Learn the top 3 options trading strategies for beginners with real trade examples in this video. While there are dozens of options trading strategies available, we've selected three strategies that we think are great starter strategies for beginner options traders. Additionally, one of the strategies is a great way for long-term stock investors to use options in their portfolios to reduce risk and potentially enhance the returns of passive investments. Strategy #1: Selling Put Spreads Selling put spreads is a great starter strategy because the trade can be implemented with very little capital, has bullish market exposure (which most investors want), and a high probability of profit. To learn all the details and risks related to selling put spreads, please watch our video on the strategy: https://youtu.be/ZTgPxXg41-Y Strategy #2: Selling Iron Condors Selling iron condors is the second beginner strategy discussed in the video. The iron condor is a great options trading strategy for beginners because it is a non-directional trade with limited risk. To learn all the details and risks related to selling iron condors, please watch our video on the strategy: https://youtu.be/UlO2I0s1Kl0 Strategy #3: The Covered Call Covered calls are more capital intensive than the first two strategies, but are ideal for long-term investors who wish to use options to hedge their passive investments, with the potential to enhance returns during dull market periods. For all the details and risks related to covered calls, check out our strategy video: https://youtu.be/I4suNFhxepM ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 48510 projectoption
How to Make Money Selling Strangles | Options Trading Study
 
09:05
Selling strangles each month on the S&P 500 is one strategy that can potentially generate monthly income for high-risk options traders. We ran a 10-year backtest of selling strangles on the S&P 500 to determine whether taking profits or taking losses is more important when attempting to profit by selling strangles. In this video, you'll learn a common mistake new options traders make: not focusing on losses. We'll investigate whether focusing on taking short strangle profits or keeping losses small is more important for long-term profitability. Study Methodology: Underlying: S&P 500 ETF (SPY) from January 2007 to present. Entry Dates: First trading day of each month. Expiration Cycle: Standard expiration cycle in the following month (43-52 days to expiration). Trade Setup: Sell a 16-delta call and a 16-delta put to create a one standard deviation short strangle. Trade Management Approaches: 1. Close profitable trades for 50% of max profit 2. Close unprofitable trades when the loss equals the maximum profit potential (a -100% return on the trade). Which approach made more money? ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 5648 projectoption
Why Traders Lose Money in the Stock Market
 
04:41
You've probably heard that most traders lose money in the stock market. It's unfortunate, but it's true. Most traders will never consistently profit in the markets. Is it due to luck or simply not enough skill? Why do 90% of traders fail? While there are many reasons traders lose money, one of the biggest mistakes is not having a strict trading plan. Without a trading plan, you're making trades and risking money based on what you think will happen in the future. Nobody can consistently predict the future of the stock market, which makes "discretionary" trading very difficult to profit from. In this video, you'll learn why most traders lose money, and what you need to do to significantly increase your chances of consistently making money when actively trading stocks, options or futures. ------------ Ultra-Competitive Commissions. Close Trades for Free.* $10 Commission-Cap Per Option Leg.** https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 1361 projectoption
Delta Hedging Explained | Options Trading Lesson
 
14:32
Delta hedging is a technique used by options and stock traders to reduce the directional risk of a position. The goal of delta hedging is to bring a position's delta closer to zero. In this video, you'll learn: 1. What is delta hedging? 2. Trading strategies for hedging strategies with positive deltas 3. Trading strategies for hedging strategies with negative deltas To support these points, you'll see real trading examples of the implementation of delta hedges: 1. Long puts against long shares of stock 2. Long calls against short shares of stock ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 16836 projectoption
TOP 7 Options Trading Tips for Beginners
 
04:50
Learning how to trade options can be an exciting yet frustrating and costly experience. In this video, you'll learn our top 7 options trading tips for beginners. These tips should help you avoid some of the common mistakes new traders make, which can potentially lead to more profitable options trading long-term. As a new options trader, you'll have to figure out things such as which brokerage firm to trade with, which stocks to trade, and how you react to profitable and unprofitable trades. All of these tips will help you quickly bypass some of the common mistakes traders make. ================================ Ultra-Competitive Commissions. Close Trades for Free.* $10 Commission-Cap Per Option Leg.** https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 978 projectoption
Bull Call Spread Guide | Vertical Spread Option Strategies
 
09:58
The bull call spread is the first of the four vertical spread options strategies we'll cover in this video series. The bull call spread is a, you guessed it, bullish vertical spread constructed with call options. How to set up the trade: 1. Buy a call option 2. Sell another call option at a higher strike price (same quantity and expiration) In this video, we'll break down how the strategy makes or loses money by visualizing the expiration payoff diagram, as well as plotting the performance of a call spread over time using real option data. - - - - - - - - - - READ THE FULL GUIDE: https://www.projectoption.com/vertical-spreads-explained/ ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 5351 projectoption
Short Put Option Strategy (Best Guide w/ Examples)
 
18:38
Selling put options (short puts) is a very bullish strategy that consists of selling a put option on a stock that a trader believes will rise in price. In this video, you'll learn: 1. What are the characteristics of the short put strategy? 2. What does the expiration risk graph look like when selling put options? 3. What are the option Greek exposures when selling puts? In addition, you'll see three real short put trade examples to demonstrate how put option prices change through time as the stock price shifts. ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 15665 projectoption
Short Put Option Strategy: Backtest Results from 41,600 Trades [STUDY]
 
18:31
The short put option strategy is a trade used by bullish investors and traders with a high tolerance for risk. In this video, we'll cover short put management results from 41,600 trades (2,600 trade entries with 16 different management combinations). After watching this video, you'll have a very good idea of how the short put option strategy has performed from 2007 to present, which management approaches were the most (and least) profitable, and how implied volatility at the time of entering the trades impacted the profitability of each approach. Here are the specific metrics we analyzed for all short put trades in the study: Win Rates: The percentage of profitable trades. Win Rate - Breakeven Win Rate: The percentage of profitable trades relative to what was required to break even over time (based on average profits and average losses). Average P/L: The average profitability of trades in each short put management approach. 10th Percentile P/L: The "worst-case" drawdowns of trades in each short put management approach. 45-Day Average P/L: The estimated average P/L of each approach in a 45-day period [Avg. P/L x (45 / Average Days in Trade)]. At the end of the video, we split the short put trades into four evenly divided buckets based on the level of the VIX Index at the time of entering the trades. All in all, the results from this short put management study were extremely eye-opening. Every options trader will be better off after consuming the information discussed in this video. ---- Get REAL Trades: https://www.projectoption.com/trade-alerts-subscription/ Open an Account With tastyworks & Get a Free Course: https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 5506 projectoption
Credit Spread Adjustment Strategies Options Traders Should Know
 
15:56
The credit spread options strategies are the simplest, yet most powerful strategies available to premium sellers. In this video, we'll explore strategies that can be used to: 1) Significantly reduce loss potential without giving up too much profit potential. 2) Increase profit potential AND decrease loss potential, at the expense of a lower probability of profit. The first strategy is rolling the long option closer to the short option, and the second strategy is adding another credit spread to the initial credit spread to create an iron condor/iron butterfly position. We'll use real trades we've put on in the projectoption porftolio to demonstrate the adjustment strategies. The platform used in this video is the tastyworks trading platform, which offers highly competitive commissions for active options traders, and allows users to easily analyze options strategies like we did in this video. ====================== Get REAL Credit Spread Trades: https://www.projectoption.com/trade-alerts-subscription/ Learn More About tastyworks: https://www.projectoption.com/tastyworks/ Get a Free Options Trading Course ($247 Value): https://www.projectoption.com/free-options-trading-course/
Views: 1232 projectoption
Vertical Spread Trading: Time Decay & Profitability
 
15:31
Time decay plays a major role in profitability when trading vertical spreads. Not only do most vertical spreads require the stock price to move a particular direction, but all vertical spreads rely on time decay to reach profit levels close to the maximum profit potential. In this video, you'll learn why a directional movement is often not enough to generate significant profits when trading vertical spreads. Additionally, you'll learn how extrinsic value impacts the prices of vertical spreads, and how the decrease in extrinsic value is a key component to profiting when trading the four vertical spread strategies. - - - - - - - - - - READ THE FULL GUIDE: https://www.projectoption.com/vertical-spreads-explained/ ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 2379 projectoption
Why Trade Options? Top 8 Benefits of Trading Options
 
12:32
Why trade options? If you've been investing in the stock market, you may have heard of options. In this video, we cover the top eight reasons for considering to learn how to trade options. The Top 8 Benefits of Trading Options #1 - Lower Capital Requirement #2 - Options Provide You With The Ability to Use Leverage #3 - Options Allow You to Customize Your Strategy #4 - You Choose Your Probabilities of Making Money on Trades #5 - Options Can Be Used to Reduce Risk #6 - Stock Investing and Options Are Perfect Complements #7 - You'll Be More In Tune With The Economy #8 - Trading Options is FUN ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 2272 projectoption
Bid-Ask Spread Explained | Options Trading For Beginners
 
10:12
The bid-ask spread is a very important liquidity metric that all stock and options traders should pay attention to before entering a trade. The bidding price represents the highest price someone is willing to pay for a stock or option, while the asking price is the lowest price someone is willing to receive for a stock or option. The bid-ask spread represents the "hidden" cost of entering and exiting a stock or option position. In this video, you'll learn the minimum bid-ask spread values you should be looking for, how the bid-ask spread changes with an option's "moneyness," how the bid-ask spread changes with the number of days until an option expires, and how market volatility contributes to wider bid-ask spreads. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 1550 projectoption
Investing in Short Volatility (XIV, SVXY)? Watch this first...
 
21:48
Investing in short volatility products such as XIV (the VelocityShares Daily Inverse VIX Short-Term ETN) or SVXY has become extremely popular in recent years. The bull market period has pulled implied volatility lower and lower, generating massive investment returns for those invested in short volatility products. With such significant gains in XIV and SVXY, should you invest in them? Not so fast. While the products offer investors significant return potential during calm bull market periods, they can also lose substantial value during highly volatile market periods. Before investing in short volatility products such as XIV, SVXY or ZIV, be sure to watch this video first. In the video, you'll learn: 1) Why inverse volatility products increased 60-150% after the U.S. presidential election of 2016. 2) The risks involved with investing in inverse volatility products. 3) The largest peak-to-trough drawdowns each short volatility product has experienced since they were launched. 4) How these short volatility products would have performed during the 2007-2009 financial crisis. ----------------------------------------------------------- Ultra-Competitive Commissions. Close Trades for Free.* $10 Commission-Cap Per Option Leg.** https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 3907 projectoption
tastyworks Tutorials | Basic Navigation & Features
 
10:43
tastyworks is a brokerage firm that is revolutionizing the options trading industry with their highly-competitive commission rates and intuitive trading software. In this tastyworks tutorial, we'll examine the basic features and navigation of their trading platform so that you become familiarized with the essential features of the software. More specifically, we'll discuss: - Watchlist Navigation and Adding Symbols - Recent Symbols Tab - Searching for a Stock/Product - Trade Page Navigation and Features After this video, you should be comfortable navigating through the essential pages and using some basic features of the tastyworks platform. ========================== Ultra-Competitive Commissions. Close Trades for Free.* $10 Commission-Cap Per Option Leg.** https://www.projectoption.com/tastyworks/ IV Rank vs. IV Percentile: https://youtu.be/dbDRyOGiFOM
Views: 1119 projectoption
Iron Condors vs. Strangles: P/L Analysis [STUDY]
 
19:59
Selling iron condors and selling strangles are two very common options trading strategies, as they are both directionally-neutral trades. However, short iron condors have less risk than short strangles, as the options that are purchased limit the risk of the strangle. At the same time, purchasing options against the short options reduces the option premium that is received, which reduces the maximum profit potential. How do iron condors compare to strangles in terms of average profits and losses in the S&P 500 over the past ten years? Furthermore, how have these trades historically performed when entered in high VIX environments and low VIX environments? The results may surprise you. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 4466 projectoption
Option Theta Explained (Best Guide) | Option Greeks for Beginners
 
17:56
Option theta represents an option's expected price decay with each passing day. Theta decay is an extremely important concept to understand as an options trader. As an option buyer or seller, you need to understand how an option's price is expected to change over time. One of the option Greeks, theta, tells us how an option's price is expected to decrease over time. In this video, you'll learn: 1. What an option's theta represents 2. Why option prices decrease over time 3. Which options have the most exposure to time decay 4. How at-the-money option decay becomes more significant as expiration approaches 5. How in-the-money and out-of-the-money option decay becomes less significant as expiration approaches. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 2200 projectoption
Iron Condor Adjustments: Rolling Down the Short Call Spreads
 
15:40
https://www.projectoption.com | Iron condor adjustments are sometimes necessary when you need to defend a trade that's moved against you. In this video, you'll learn the iron condor adjustment strategy of "rolling down" the short call spreads. If the stock price falls quickly after selling an iron condor, the position will likely have a loss, and the directional exposure (position delta) will grow positive. In response to the adverse stock price movement, a trader can roll down the short call spreads to defend the trade. To roll down the short call spreads, a trader must buy back the old call spreads and sell new call spreads using lower strike prices. By rolling down the short call spreads, a trader will collect more option premium, which will reduce the maximum loss potential and increase the maximum profit potential. However, the range of maximum profitability gets smaller, which makes achieving maximum profit a lower probability occurrence. Near the end of this video, we cover a more realistic and visual example by analyzing a recent Facebook (FB) iron condor, and assess the position's risk and reward potential before and after the iron condor adjustment. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 1711 projectoption
Trading For A Living | How Much Money Do You Need?
 
06:02
Trading for a living is something many traders hope to achieve when first starting out. The idea of supporting yourself entirely from profiting in the stock market is appealing, especially since you only need a computer and can be anywhere in the world. However, what does it take to realistically trade for a living? How much money do you need? What considerations need to be made in regards to the unpredictable nature of the stock market, and the psychological aspects of living off of trading profits? In this video, we take a mathematical approach to determine how much money someone really needs to have before starting to trade full-time on their own. Additionally, we'll cover some incredibly important considerations traders need to make before quitting their jobs and taking on the stock market full-time. ================================ Ultra-Competitive Commissions. Close Trades for Free.* $10 Commission-Cap Per Option Leg.** https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 1379 projectoption
Stock vs. Option Buying Power | Basic Trading Concepts
 
11:05
https://www.projectoption.com | Stock buying power and option buyer power aren't the most fun topics to discuss, but they are necessary to understand as a trader. In this video, we'll discuss stock buying power in cash accounts and margin accounts, as well as option buying power. It's quite simple. When buying any option positions or selling limited-risk option spreads, you need to have the position's maximum loss potential in available option buying power to trade that position. When selling naked options (short calls or short puts), the option buying power requirement is typically the greatest of three calculations, which your brokerage firm takes care of for you. The most important takeaway from this video is that when selling naked option positions, it's never a good idea to "max out" your account's available buying power, as the margin requirement can increase as the stock price, out-of-the-money amount, and option premium change. As a result, it's possible that your margin requirement expands and you get forced out of your option position at the worst possible time. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 2573 projectoption
VIX Options Settlement Explained | What You Need to Know
 
12:30
VIX Index options are some of the most actively traded options in the world. However, VIX options have a very different settlement process compared to standard equity options. In this video, you'll learn exactly how the VIX options/futures settlement process works. Here are the three biggest nuances related to VIX options expiration: 1) VIX options are A.M. settled, not P.M. settled like equity options. 2) VIX options DO NOT receive their settlement value based on the VIX Index. 3) VIX options are cash-settled at settlement as there are no "VIX shares" for the options to settle to. The examples and explanations in this video will help you develop a firm understanding of the VIX options settlement process. ---- Ultra-Competitive Commissions. Close Trades for Free.* $10 Commission-Cap Per Option Leg.** https://www.projectoption.com/tastyworks/ Our Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 833 projectoption