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Stock Market Education: Options Trading Simplified

794 ratings | 51627 views
Learn more about the course here: http://claytrader.com/courses/options-trading-simplified/ Join My Private Trading Team - http://claytrader.com/innercircle/ Learn to Use Charts - http://claytrader.com/training/ ClayTrader.com is a wholly-owned subsidiary of Guidance Marketing, LLC. Guidance Marketing, LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever and we are not qualified to give financial advice. Investing/trading in securities is highly speculative and carries an extremely high degree of risk.
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Text Comments (185)
Pranav Suresh (24 days ago)
Hi, this was a great video. But why do the prices of options have to increase when the stock price actually falls ? Is this a coincidence ? And moreover, this story of making money using options looks too good to be true. Can you present an example where you lost money from an investment in options ?
ClayTrader (23 days ago)
I'm not here to convince you of anything. I already have plenty of happy customers - http://claytrader.com/testimonials/ and http://claytrader.com/podcast/
Pranav Suresh (23 days ago)
+ClayTrader In fact if you read other blogs, most options trading results in a financial loss. I was just wondering if u can explain one such scenario. And any person buying your course for 99$ would only do that if the return on their investment (of learning stuff) is more than 99$. I shall definitely buy your course if you can convince me about the same.
ClayTrader (24 days ago)
That's why you need to buy the course - https://claytrader.com/courses/options-trading-simplified/
Calmao Calmaito (1 month ago)
Sorry Clay, you didn't fully explain the options completely. What is the risk if it goes the opposite way? Which are the full risk of doing it?
ClayTrader (1 month ago)
That's the point of the course. You need to buy the course - https://claytrader.com/courses/options-trading-simplified/
fred fairchild (1 month ago)
A little over four years after first seeing this video I still love it. Changed my life forever. I've been riding the TSLA rollercoaster ever since :)
ClayTrader (1 month ago)
Good to hear from you Fred.
N/A N/A (1 month ago)
He should wear a shirt and tie
ClayTrader (1 month ago)
Why's that?
Mechanic Ma (1 month ago)
What happened to premium? How do you account it as unrealized gain or loss? I’m still confuse.
ClayTrader (1 month ago)
Those are the things I teach in the actual course.
Ryan Floom (4 months ago)
For the first example (haven't made it to the second one yet) but the stock goes down... why would you make 1.7% on it... you'd lose that much not make it?
ClayTrader (4 months ago)
All explained here https://claytrader.com/courses/options-trading-simplified/
Jerry Nix (6 months ago)
Holy crap this is confusing, I've got a lot to learn.
ClayTrader (6 months ago)
That's the point of the course, to explain things in a "simple" way https://claytrader.com/courses/options-trading-simplified/
James Gonzales (9 months ago)
did I miss something or are these all short sales?? why do you buy shares if you're assuming its going to go down?
ClayTrader (8 months ago)
The best value for your money will be my University/mentorship program (which includes a 30 day money back satisfaction guarantee): http://claytrader.com/training/university/ if this is outside your investment range for education, you can buy individual components of the program here via the courses: http://claytrader.com/training/courses/ if you're not sure where to start in regards to the courses, you can watch this short video: http://claytrader.com/training/clays-suggestions/
James Gonzales (8 months ago)
yeah. ive been thinking about joining a course but I'm sorta looking for the cheapest ones. what are you're prices?
ClayTrader (8 months ago)
I'm not saying it is the case for you, but I hear this all the time, and when people go in with "real" money.... the randomness of their education and training comes out in full force.
James Gonzales (8 months ago)
i think I understand it now but ive been using trading view to paper trade and I really think its been teaching me a lot . so far ive made over 1200$ just catching active stocks and sticking to my plan. its only been 3 days.. now of course I know this is all a simulation but I treat the money as if it is the money coming out of my pocket.
ClayTrader (9 months ago)
That's the idea of the course, to teach you all that stuff.
Mission Impossible (9 months ago)
Can stop loss orders be used as well as profit target orders, to get in and out? Would you agree that trading options provides the most leverage and overall best bang for the money ? Thanks
ClayTrader (9 months ago)
Yes. Options offer lots of flexibility, especially to those with smaller accounts. Yes, all those orders can be used.
Mission Impossible (9 months ago)
The leverage is insane!
ClayTrader (9 months ago)
It can be.
Jonathan Walker (10 months ago)
I know, old video, but this sounds too good to be true!
ClayTrader (10 months ago)
It definitely is not.
Jordan Fogel (1 year ago)
so if your wrong on your option, do you lose all of your investment?
ClayTrader (1 year ago)
That's all covered in the course.
Kingdom of Saturn (1 year ago)
your a god dude
ClayTrader (1 year ago)
Thanks.
JD Mart (1 year ago)
clay can you comment on why some stocks have options available and some don't?
ClayTrader (1 year ago)
It's just how the market works. If a company generates enough interest, there will eventually be options.
Harlacan (1 year ago)
Is he buying Puts and not the Calls?
ClayTrader (1 year ago)
That's what I talk about in the course.
FirstName LastName (1 year ago)
That last swing trade is basically saying "Would you prefer to have $118.73 instead of $175.77?"
ClayTrader (1 year ago)
Not sure I understand.
Colton Hayden (1 year ago)
I may sound a little noobish. But prior to placing a bid on the options market do you have to take a stance on whether the stock is going up or down for the day?
ClayTrader (1 year ago)
That's all talked about in the course.
Gwent Champ (1 year ago)
So in your example you said the option cost $2.03. Yet you said the minimum you need to get involved is $203. Why is that? Is it not only $2.03 ?
Timothy (8 months ago)
Each contract is 100 share.100 x 2.03$$$
Harlacan (1 year ago)
Cause each option controls 100 shares 2.03 X 100 = $203.
Jasmine Reed (1 year ago)
Gwent Champ I was confused on that one as well
ClayTrader (1 year ago)
That's in the course https://claytrader.com/courses/options-trading-simplified/
Mohamed Aisset (1 year ago)
Confusing
ClayTrader (1 year ago)
That's why you should take the course lol
House Of Producers (1 year ago)
Hi, Im interested in trading with binary options. What is your opinion about binary options and what are the best brokers for traders in europe?
ClayTrader (1 year ago)
You're welcome.
House Of Producers (1 year ago)
ClayTrader Thanks!
ClayTrader (1 year ago)
I give my thoughts here https://claytrader.com/videos/trading-review-binary-options/
sofaking (1 year ago)
What a dumb ass
ClayTrader (1 year ago)
haha... thanks!
CHACE (1 year ago)
This really all depends on your strike, exp date, and what happens to volatility. One thing for sure is that time decay is against you.
ClayTrader (1 year ago)
Yup. And those are some of the things taught in the course.
Winston Quezada (1 year ago)
Clay you're talking about binary options a d not traditional option. Stop confusing people.
ClayTrader (1 year ago)
Huh? I am 100% NOT talking about binary options.
Oscar Arteaga (1 year ago)
Why does the option go up if the stock goes down?
CHACE (1 year ago)
Compared shorting the underlying stock to buying put options. By his comments, he chose use this comparison, rather than the more understandable version, comparing buying the underlying stock to buying call options, because he wants you to be confused and get into his courses.
ClayTrader (1 year ago)
That's what I explain in the course - https://claytrader.com/courses/options-trading-simplified/
Cameron Reverts (1 year ago)
But why did the option increase even though the stock decreased
Praveen Nadarajah (1 year ago)
Put options give the holder the right to sell an underlying asset at a specified price (the strike price). The seller (or writer) of the put option is obligated to buy the stock at the strike price. Put options can be exercised at any time before the option expires. Investors buy puts if they think the share price of the underlying stock will fall, or sell one if they think it will rise. Put buyers - those who hold a "long" - put are either speculative buyers looking for leverage or "insurance" buyers who want to protect their long positions in a stock for the period of time covered by the option. Put sellers hold a "short" expecting the market to move upward (or at least stay stable) A worst-case scenario for a put seller is a downward market turn. The maximum profit is limited to the put premium received and is achieved when the price of the underlyer is at or above the option's strike price at expiration. The maximum loss is unlimited for an uncovered put writer. Read more: Options: Calls and Puts http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/options-calls-puts.asp#ixzz4t1tNQq1E Follow us: Investopedia on Facebook
ClayTrader (1 year ago)
All explained in the course.
Jovan Rodriguez (1 year ago)
I am considering buying the course for options trading but please answer me these questions. Is the information you provide on the course the same as what you provide on youtube? Also, would you only direct me to the options course to be a successful options trader? Please answer, I'm seriously considering buying the course.
ClayTrader (1 year ago)
I don't cover what I cover in the course on YouTube. There are many ways to make money in the market, so for me to say the "only" way to be successful in trading is with options would be misleading. Options are an awesome tool, but it's not the holy grail or anything.
Alfred Frozone (1 year ago)
I freaking love this guy, thanks Clay back at it again with the informative tutorial.
ClayTrader (1 year ago)
Glad you enjoyed. Thanks for the feedback.
CH Teh (1 year ago)
I have a question here... for what I know, option is trading in weekly or monthly basis..but why what you talk about is day trading? (**sorry I'm new)
ClayTrader (1 year ago)
The sky is the limit with what you can do with options. Day trading and swing trading are both possible.
Dawg_Doge_exe (1 year ago)
you did not mention call and put or are you talking about something else ?
ClayTrader (1 year ago)
I'm talking about "options", which includes "calls" and "puts".
Zippered Zippy (1 year ago)
Another great video. Quick question if you get into options and the contract ends July 8th and the put was July 1st what happens if your happy with your gains can you close the trade and take profits on July 3rd?
ClayTrader (1 year ago)
That's the whole idea behind this course. All the answers are in there.
Melanie Nguyen (1 year ago)
hi guys Im new. Can anybody explain to me how he get the percentage? I tried by diving start and end, and i end up different number..
ClayTrader (1 year ago)
This may help - https://percentagecalculator.net/
Vizz 31 (1 year ago)
I'm learning so friggin much this is eye opening and I'm so hooked on the education... where have I been my whole life lol....
ClayTrader (1 year ago)
Awesome! Sounds like you're getting the ax right to the grindstone! I'm happy to hear you're enjoying it :-)
Vizz 31 (1 year ago)
Today...
ClayTrader (1 year ago)
When did you buy it?
Gabriel XColon (1 year ago)
You have to say that if you dont get it right you will lose everything
ClayTrader (1 year ago)
That's not true. You can be wrong and still salvage the positions. Sure, you can lose money, and sure you can "lose everything", but that is by no means a "it happens every time" type situation.
Tesla Model 3 (1 year ago)
LOL @ if you don't have $63 in your account, you probably shouldn't be trading.
ClayTrader (1 year ago)
I'd agree with that.
Jonathon Thompson (1 year ago)
noob questions but where do you buy your options
ClayTrader (1 year ago)
Those are the exact things taught in the course.
Alex Skywalker (1 year ago)
more i learn about stocks more it reminds me of sports betting. trading stocks is like betting the spread and trading options is like betting totals.
ClayTrader (1 year ago)
I've never done sports betting, so I really can't comment. I'll take your word for it though :-)
AkeriaTheTrader (2 years ago)
Ive been watching your videos for days now because I'm in the process of saving to trade; but I really dont understand this one you have to acutually break it down for us beginners and do the math.
ClayTrader (2 years ago)
Here ya go - https://claytrader.com/courses/options-trading-simplified/
AkeriaTheTrader (2 years ago)
ok, can you send the link to your course?
ClayTrader (2 years ago)
That's what I cover in the course itself.
Ariel JJ (2 years ago)
So you bought at $2.03 and sold at $3.55 to get out of the trade for the first example? I thought for options, you can sell at the market price when the trade is over. For instance, even though you bought at $2.03, I thought you could sell at $117.00 since you guessed right.
ClayTrader (2 years ago)
You're welcome.
Ariel JJ (2 years ago)
No, you teach a quick lesson. Idk if you've forgotten because of how long ago you uploaded this, but you don't mention anything about your course until 10:35. But I completely understand now, so nvm thanks a lot.
ClayTrader (2 years ago)
This video you are replying to is talking about my training course that I offer. I'm not sure what your confusion is about.
Ariel JJ (2 years ago)
...? OK I think thanks
ClayTrader (2 years ago)
That's what is taught within the course.
Chad Nystrom (2 years ago)
by "options"....you mean "puts" right?....funny how the terms call or put is not used. why would the video not say if you are buying puts or selling calls?
ClayTrader (2 years ago)
What else would I mean?
Chad Summy (2 years ago)
So all of these you purchased 100 options. Is that the minimum that you have to buy?
ClayTrader (2 years ago)
These are all the things explained in the course.
Orlando Henderson (2 years ago)
Hey Clay I know you're a Ohio state alumni and football fan. What happened to them against Clemson lol but by the way. I'm looking to invest into your robotic course. Don't have enough capital for the whole university yet but I will try. I'm pursuing my MBA I'm 18 but I'm debt free right now thank god.
ClayTrader (2 years ago)
Tough game for sure. Oh well, can't complain about a final 4 spot, but still... rough game. Always next year. Robotic Trading is the place you definitely want to start if you can only afford that at this time. Congrats on being debt free! Just take it one course at a time then.
Doug Ellis (2 years ago)
Your statements regarding stock price in all three example seem confusing. For example the stock price for "involvement" is 119.50 but at close 117.46. This is a loss of -1.70%. But the option is a gain of 75%. Just clarifying one route leads to a "loss" and the other a "gain". Thx
ClayTrader (2 years ago)
This is all explained in the course.
Sean Kandel (2 years ago)
Is this a video of you Short Selling Options?
ClayTrader (2 years ago)
That's not accurate.
ClayTrader (2 years ago)
No.
Shaquan Williams (2 years ago)
So is options trading only for if the price goes up or...?
ClayTrader (2 years ago)
It can be either. It can also be for when the price goes up, down, OR sideways. That's when you get more into advanced options: https://claytrader.com/courses/advanced-options-trading/ I explain more in that video
Leevi Järvelä (2 years ago)
https://www.youtube.com/watch?v=y_v0LQF4tks Hi, Clay. :) In this video you said that making 100% gains in your account is impossible. This video you give me atleast the impression that you can easily make more than 100% by trading options. Am i missing something? ps. sorry for bad english
ClayTrader (2 years ago)
You're welcome. No sales pitch from me other than if you enjoy the free content I have on YouTube/here: https://claytrader.com/blogs/case-studies/ then I'm very confident you'd gain value out of the University program. Please let me know if you have any other questions.
Leevi Järvelä (2 years ago)
Thank you for patience :) Really considering joining your university program, you teach very logically.
ClayTrader (2 years ago)
I never said you could not. But if you think you are consistently going to take an $100 account and nail 100% winner after winner, that just is not realistic. Sure, it could happen once or twice, but it's not going to happen consistent enough to grow and account.
Leevi Järvelä (2 years ago)
Then why did you said that on video i linked earlier? Sorry im just trying to understand :D
ClayTrader (2 years ago)
Correct. You don't need to be the "best trader ever".
Tim Miller (2 years ago)
Hi Clay, i have been digging through your old options videos, as its time for me to learn something new. i was confused as because you did not mention the Strike price @ which you bought the options at. Is strike price are little relevant to you while trading option , or which strike price should i choose, should i go for the strike price that is close to the current market price, the stock is trading at?
ClayTrader (2 years ago)
That stuff is all talked about in the Options Trading Simplified course that this video is for: https://claytrader.com/courses/options-trading-simplified/
fred fairchild (2 years ago)
MIND=BLOWN. I've been trading penny stocks for a while with decent success as far as win rate but I am still under the PDT rule, still have a VERY small account, still only trading occasionally because of T+3. I never considered options because they're so complicated at times blah blah blah but seeing it broken down like this is eye opening.
ClayTrader (2 years ago)
Good to hear it could help "open your eyes" a bit :-)
Darrell Gautier Jr. (2 years ago)
thanks man! Im learning so much! I've recently come into a little bit of money and am trying to learn how to trade
ClayTrader (2 years ago)
Hope you decide to give the course a try!
David Jimenez (2 years ago)
im confused... this is not a "Put Options", correct?
J mags (6 months ago)
+ClayTrader what a dick!
Steven Stjmw (10 months ago)
+David Jimenez This was great, I've been looking for "stock trade option" for a while now, and I think this has helped. Ever heard of - Jenameron Penny Smackdown - (just google it ) ? Ive heard some amazing things about it and my mate got amazing results with it.
andrew valdes (1 year ago)
ClayTrader how much is your course? ?
italianrepsta (2 years ago)
No that is binary options when you call or put a stock/forex. Options seem to be completely different...
Orlando Henderson (2 years ago)
David Jimenez which platform you use for paper trading?
MrSolwara (2 years ago)
Hey I have a chess sponsored account with Commsec in Australia. Is that a good platform to trade options? If not then please recommend good ones. If Commsec is okay then I will just trade through Commsec. Some advice please anyone...
MrSolwara (2 years ago)
Awesome dude. Appreciate your time. Cheers!
ClayTrader (2 years ago)
Give this a look: https://claytrader.com/blog/best-online-stock-broker/
PlayYouAChopin (2 years ago)
Beginner Q: for you to make $ in the Stock scenarios when you are expecting the price to fall, it would be through shorting it right?
ClayTrader (2 years ago)
No. In the world of options, you still "buy". It's all explained in the course, but there is no shorting involved.
Peter Wierzba (2 years ago)
For the second stock shouldn't it be 260%? Or did I miss something
Kaiserlicher König (2 years ago)
Peter wierzba 7.30 is 260% of 2.80. But the change is 161%. 7.30 - 2.80= 4.50 gain wich is 161% of 2.80.
Zaid Alchalabi (2 years ago)
it is 260% not the point thou
ClayTrader (2 years ago)
lol, you're fine.
Peter Wierzba (2 years ago)
+ClayTrader awkward, okay thanks haha
ClayTrader (2 years ago)
It's 161%. You are doing something wrong in your % calculation.
Zaid Alchalabi (2 years ago)
amazing thats 1 contract right ? in chatroom im in i see people buying 10-15-20 so i guess thats alot more money. also that price for regular stock is for 1 share which is insane lol great video im a decent day trader and want to improve to options. where to start. guide me please i already got account with 17k+ from day trading
ClayTrader (2 years ago)
Give this video a watch: https://claytrader.com/videos/much-money-need-trade/
Logan Bloop (2 years ago)
+ClayTrader as in when you first started trading. I'm 17 and I really wanna start, but I wanna have an idea of how much money i should start with
ClayTrader (2 years ago)
With regards to what?
Logan Bloop (2 years ago)
How much did you start with?
ClayTrader (2 years ago)
Sounds good. Let me know if you have any other questions.
N Smith (2 years ago)
Great video, awesome information... but i couldn't help but notice you throwing up the pyramid with your hands throughout the entire video. Is that just public speech body language techniques?
ClayTrader (2 years ago)
haha
Dank Pepto (2 years ago)
+ClayTrader Illuminati symbolism, I guess.
ClayTrader (2 years ago)
+N Smith What's the "pyramid"?
George Feelgood (2 years ago)
+ClayTrader My bad, l should've said OptionsHouse for broker and equityfeed for scanner. Thanks for clarifying.. That said.. would you use the scanner the same way for options as you would for stocks? Thanks
ClayTrader (2 years ago)
+George Feelgood Those are the types of things I talk about within the training courses.
George Feelgood (2 years ago)
Are there tools you recommend to use for analyzing options and which discount brokers to use to mitigate high commissions? Would equityfeed suffice as the platform of choice? Thanks in advance,
ClayTrader (2 years ago)
+George Feelgood Check this out for broker: https://claytrader.com/blog/best-online-stock-broker/ Equityfeed is a scanner, but not a platform that allows you to buy stocks. You need a broker for that.
James Robinson (2 years ago)
what is better trading options or the forex? I've lost alot of money on forex and ready to give up
ClayTrader (2 years ago)
+James Robinson I would recommend this course: https://claytrader.com/courses/robotic-trading/ before trying to venture into options trading (or any other trading for that matter)
James Robinson (2 years ago)
+ClayTrader good video i don't have a tool and i don't know what is the best tool for me to learn I've been learning chart patterns so far.
ClayTrader (2 years ago)
+James Robinson Do you know how to properly answer this question? https://claytrader.com/videos/stock-market-basics-the-only-question-that-matters/ If you can't answer that with a viable tool, then it doesn't matter what you are trading, you'll struggle.
Hunter Koss (2 years ago)
So with options you can choose whether you think the price will increase or decrease and if you choose correctly you can make money either way? I apologize if that is a dumb question, I am new to all this.
ClayTrader (2 years ago)
+Hunter Koss Yes. If you think a stock is going down, you can use options to make money. If you think a stock is going up, you can use options to make money.
Paige Bostic (3 years ago)
In order to start buying options should you have enough in your account to actually cover the price of the stock or can you just buy the options and sell your options as opposed to selling the stocks themselves?
ClayTrader (3 years ago)
+Paige Bostic This course teaches "trading the premiums", so you won't be ever needing to buy the stock itself.
macboogieland (4 years ago)
i dont get this... isnt stock a bunch of options put together? so how can one go up and one down?? 
Praveen Nadarajah (1 year ago)
Dividends can affect option prices because the underlying stock's price typically drops by the amount of any cash dividend on the ex-dividend date. As a result, if the underlying's dividend increases, call prices will decrease and put prices will increase
ClayTrader (4 years ago)
All explained here: http://claytrader.com/courses/options-trading-simplified/
Arielle-Cherie (4 years ago)
For some reason I thought $500 was the minimum amount you needed to participate in an options contract. I saw a video on YT saying the minimum is 1 contract which equals 100 shares and brokers charge $5/share so it's an automatic $500. Is that just to open a NEW contract and what you did was trade someone's pre existing contract? Could you please explain this?
ClayTrader (4 years ago)
That's just completely false. All brokers "do" have different commission structures, but $500 is NOT the minimum you need to play options. That is totally false.
Nalow (4 years ago)
Great video! But I'm wondering will you lose all the 203 (first trade) if the prize goes against you by 0.01? Or will you lose only some of the money?
ClayTrader (4 years ago)
You would only lose some of the money. The only way you lose the entire 203 is if you let the price of the option go all the way down to $0.00.
Jhon Smith (4 years ago)
Nice video!!!

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