Why This Popular Trading Strategy Is So Risky
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Күн бұрынIn 2021, options activity hit a record high, with nearly 9.9 billion contracts traded. That was more than 32 percent higher than the previous record set in 2020. This increase in volume can be traced back to the meme stock mania as millions of new investors jumped into the stock market during the pandemic. Options trading is a popular strategy among institutional investors to hedge their risk in the markets, but if it’s not executed carefully, it can lead to devastating losses. Watch the video above to learn how options trading took off and why the strategy can be so risky.
“The idea that I used social media to promote GameStop stock to unwitting investors and influence the market is preposterous,” Keith Gill told Congress.
Gill - who goes by DeepF------Value on Reddit and Roaring Kitty on KZfaq - testified in front of the U.S. House of Representatives’ Committee on Financial Services in February 2021. He became an influential figure online and is credited with helping inspire the epic GameStop short squeeze. Gill would screenshot his investment portfolio, showing his winnings from his GameStop position.
A lot of Gill’s portfolio consisted of what are called options contracts.
Options are an investment strategy that gives a trader the right to buy or sell a security.
“It’s best to think of options as an insurance product,” said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group.
Over the past two years, options have become increasingly popular among individual investors using brokerage platforms such as Robinhood.
“Twenty years ago, if you wanted to trade an option, you needed to maybe call up a broker on the phone, you needed to pay a significantly high amount of commission,” Murphy said. “So there’s much easier access to options markets, and the use of options has pretty much just grown alongside of that.”
If used properly, options can be a good way to hedge risk. But they can also be risky.
“Options are the kinds of bets where you can lose everything,” said Joshua Mitts, associate professor of law at Columbia Law School. “Unlike a share of stock, where you might see your portfolio go down by 5[%] or 10% in value, when you buy and sell options, you can lose all of your money.”
“[Options] in and of themselves are not bad tools,” said JJ Kinahan, chief market strategist at TD Ameritrade. “Fire is a wonderful tool. If you don’t know how to use it, it’s going to end poorly.”
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Why This Popular Trading Strategy Is So Risky
@ChristopherAbelman 2 ай бұрын
I prefer investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or when ever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market just like regular stock. That’d be enough to create a portfolio that would pay you between $50k to $70k in dividend income
@JosephineKenney 2 ай бұрын
Just because there are entries in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional
@HildaBennet 2 ай бұрын
I agree, Having a brokerage consultant for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.
@PennyBergeron-os4ch 2 ай бұрын
That does make sense, unlike us, you seem to have the Market figured out. Who is this consultant?
@HildaBennet 2 ай бұрын
Try Sonya Lee Mitchell,she is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@HildaBennet 2 ай бұрын
Google Sonya Lee Mitchell and do your own research. She has portfolio management down to a science
@Vikturneer Ай бұрын
This time last year I considered getting into options without much knowledge and decided to have a consultation with a trade analyst, and it was incredibly insightful. One year down the road, I truly cannot stress enough how helpful experts in this field are!
@Rmorales799 Ай бұрын
To be honest, I've had a hard time grasping the basics. What insights did you gain, and how are you doing it?
@Vikturneer Ай бұрын
It’s not rocket science. I got into options, myself but wasn't getting the results I wanted the first couple of months. Got tired of taking losses and decided to seek mentorship from Jonas Herman, a certified fiduciary who helps oversee my investments for the long term and has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my investment decisions align with market dynamics for optimal profit.
@Vikturneer Ай бұрын
Jonas is a certified trade analyst who helps oversee my investments for the long term and has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my investment decisions align with market dynamics for optimal profit.
@Pathston Ай бұрын
Sounds like I need help so bad. To me, investing is not worth it and I know that's the same mindset holding me back from taking a step forward.
@Pambegay Ай бұрын
Over the years as a trader, I've been part of numerous trading programs, sifting through a barrage of information. Yet, none comes close to the sheer clarity, depth, and precision of Herman’s instructions and insights. It's akin to finding a diamond in the dirt.
@JacobReynolds-t7v 18 күн бұрын
One question, please! Is NVIDIA a safe buy to outperform the market this year? I'm tired of these new buys every week, just to make up some assets with a low percentage on my $236k portfolio and try to keep everything around 10%.
@JoeWilmoth-k2w 18 күн бұрын
I've always advised the investors I know to exercise caution when it comes to new buys, especially right now. You should thread the market with the guidance of a qualified specialist or reliable counsel if you don't know where to look.
@KacieLehman 18 күн бұрын
@@JoeWilmoth-k2w I deal with an investment advisor for this reason. I currently have over $800k invested in a diversified portfolio that has grown exponentially and is suitable for all market seasons. Our current project for this year is a more concrete ballpark target.
@JacobReynolds-t7v 18 күн бұрын
@@KacieLehman How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
@KacieLehman 18 күн бұрын
@@JacobReynolds-t7v Victoria Carmen Santaella is the licensed advisor I use. Just research the name. You’ll find the necessary details to work with.
@JacobReynolds-t7v 18 күн бұрын
@@KacieLehman I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip.
@jinzukinoha7424 Жыл бұрын
Option isn't dangerous Lack of knowledge is dangerous.
@carter3294 Жыл бұрын
U.S. stock index futures were lower on Thursday as news of another COVID lockdown in China revived concerns about a slowing global economy. My primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?
@hannahschultz9074 Жыл бұрын
Successful people don't become that way overnight. What most people see at a glance- wealth, a great career, purpose-is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life..
@davidvogel3921 Жыл бұрын
You’re right, the importance of multiple stream of income, unfortunately having a job doesn't mean financial freedom or security,
@davidvogel3921 Жыл бұрын
speaking of been successful. I know I am blessed if not I wouldn't have met someone who is as spectacular as Mrs Serenay mathieu
@aliciabennett9216 Жыл бұрын
@willam kate I truly agree with you on that,
@aliciabennett9216 Жыл бұрын
I must say crypto is the future and with the way Bitcoin is climbing so high it's really advisable for people to invest now.,
@cedricjiosh6935 Жыл бұрын
Wow, amazing to see others who trade with Serenay mathieu I'm currently on my 5th trade with her and my portfolio has grown tremendously, All my financial goals have been achieved since I met Serenay mathieu
@helenoliver4838 2 жыл бұрын
When the market goes down then it's buying opportunity. If the market goes up then you are making money. If you stay invested and ignore the market's ups and downs, you'll make a lot of money in the long run; however, a severe market correction causes a lot of margin calls and sell-offs, driving the market even lower. currently, I'm up 13% in my diversified portfolio. As crazy as it sounds some still make enormous returns from this seemingly unknown market. gotta be greedy when others are fearful
@dannyvera8475 2 жыл бұрын
exactly what I'm personally planning on doing now the market is down, but I have no idea about stocks to buy or what assets that would yield the highest potential and so on. Your portfolio is freaking awesome, you seem to be doing well yourself. how do you select stocks you invest in?
@helenoliver4838 2 жыл бұрын
I have my portfolio very well-diversified, though I did it using trad signals from a US-regulated broker *PRISCILLA DIANE AIVAZIAN* financial analyst and CNBC contributor and it's been a huge relief. Good earnings and little to no engagement at all on my part. Her stock picks are top-notch, I don't worry about market trends anymore because she's quite the genius in trading and portfolio diversification
@dannyvera8475 2 жыл бұрын
@@helenoliver4838 Do you mean copying her trades as it's been done in Etoro? Do you just give out your funds or copy them manually?
@helenoliver4838 2 жыл бұрын
@Manuel Andrea Yeah but I don't give out funds here, It stays right in my account. I only mirror her trades in real-time that's ideal for this system. Copy trading is 100% secured and very transparent to work with her, you don't have to send any funds over. you have control over your funds and can opt-out anytime you want just like in Etoro. Check out her name online and get in touch if you need help with this insane market.
@henrygarcia1792 2 жыл бұрын
I'm MUCH more interested in buying stocks now that they are cheap. You can't just sit on cash waiting for the market to drop 10% before you start buying. The best strategy is to start buying in slowly and then gradually increase the pace of buying as the prices continue to drop. Cash isn't king at all in this era
@junkerzn7312 2 жыл бұрын
Well... the only problem with using GameStop as an example is that it is one of those rare internet trades that actually made a ton of money for retail investors, and destroyed a number of large private traders who had been shorting the stock and got squeezed for billions. That particular action was not a pump and dump, it was a "we're going to force a short squeeze and take some large over-leveraged traders to the slaughterhouse", in public, on the internet. And they did it. Twice in fact. And now maybe even a third time. Robinhood, on the other-hand, is the ultimate stupid-consumer bait. It wasn't promoting trading for the masses... you could already do that on any number of platforms. It was promoting fast, repeated trading by offering 'free' trades. They make money by selling those retail trading streams to large trading houses to sniff and front-run. Death of a thousand cuts. Their platform definitely did not have the best interests of the teeming masses at heart. If you want pump-and-dumps, shady trading practices, and mass fraud, the crypto-currency and NFT markets take the cake these days. A never ending stream of fakery, fraud, and theft. -Matt
@user-pi2lq 2 жыл бұрын
Which stock should I buy Matt help me i am poor
@junkerzn7312 2 жыл бұрын
@@user-pi2lq Every word in that sentence implies greater problems for you my friend. Stocks should be the last of your worries. -Matt
@isaacscott1063 2 жыл бұрын
You sound bitter
@flock9487 2 жыл бұрын
@@junkerzn7312 Everything you’ve been saying sounds broke
@valdek001 2 жыл бұрын
Very well said, if you have a channel that speak on finance I'd definitely follow it. That's a good summary of what the current financial landscape is about
@YTDataAnalyst Жыл бұрын
Can't you guys just make a direct video explaining how people can make big gains within a short period? Isn't there a more direct approach to this? Or are these all speculations?
@sakhalittle9206 Жыл бұрын
@@ANTHONY_esq Generally diversification is a major key to investing. Great tips.
@drboyce Жыл бұрын
Don’t chase fast money. My PhD is in Finance and that’s not typically how it works
@louranterlius9515 Жыл бұрын
I have be working with mrs debra barton for 4 months now i can guarantee you she is the best when its comes to trading and investment.
@louranterlius9515 Жыл бұрын
I can recommend anybody and swear with my life that's she no like others.
@louranterlius9515 Жыл бұрын
you can contact her on Instagram
@ignaciorlimon1 2 жыл бұрын
I can’t wait for the piece they do on “How Market Makers and Hedge Funds Made Risky Trading the Norm”
@Zov631 2 жыл бұрын
They won’t lol
@Stoneface_ 2 жыл бұрын
Market makers and hedgefunds didn't make me to trade options. I've been trading it for 7 years now. If you own growth tech stocks, especially in this environment, you should use options to hedge your portfolio 😀
@MegaTommyn 2 ай бұрын
with this intern explaining it lol!
@UlfsaarGotHungry 2 жыл бұрын
This whole video can be summed up into “leverage correlates with risk”
@louisairvin3052 Жыл бұрын
We are already in the big crash, Inflation is a catastrophe. This CPI report is a colossal failure. To bring the housing market to a halt, the FED will have to pull all the stops. The unfortunate issue is that other markets are being decimated.If you want to stay green, you have to rely on a lot of diversification. Currently up 14% and being careful. Still a better deal than leaving it in a savings or checking account yielding 0-1 percent interest.
@lisaollie4594 Жыл бұрын
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
@anthonyrussell5718 Жыл бұрын
@Lloyd Bernard You are right! I diversified my $550K portfolio across various market with the aid of an investment advisor, I have been able to generate a little bit above $1.4m in net profit across high dividend yield stocks, ETF and bonds during this red season.
@kansasmile Жыл бұрын
@@anthonyrussell5718
@anthonyrussell5718 Жыл бұрын
@@kansasmile
@kansasmile Жыл бұрын
@@anthonyrussell5718 Thanks her website popped up on the first page immediately I searched her. I read through her resume and seems pretty tight, so I booked a call to discuss with her
@torytripp5108 2 жыл бұрын
With the way the market is moving, we'll mostly hold for longer than 2030 to realize profit gain, I think a video on "How to profit from the present market" will be more effective, I mean I've heard of people making upto 250K within few months and I'd like to know how.
@bruceconnor8010 2 жыл бұрын
there are loads of ways to make a killing right now, but such high-volume near impeccable tradess can only be carried out by real-time experts.
@jefferysfishing8190 2 жыл бұрын
@Flynn Chasin that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.
@scoutirving9589 2 жыл бұрын
I just looked up Frances Annette Batista online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals.
@rocketpropelled 2 жыл бұрын
Tldr: A bunch of professional gamblers want more rules "to save the common gambler" in their casino so the professional gamblers have less chance of losing money.
@IAMBETTERTHANYYOU Жыл бұрын
Very well articulated; I wish I had more time for trial and error, but I'll be 56 in October and I need ideas and advice on what investments to make to set myself up for retirement, especially with the looming inflation and recession; my goal is to have a portfolio of at least $500k at the age of 60.
@TruckeeFam Жыл бұрын
The S&P500 is now trading below its 25-year average based on the price-earnings ratio. Good news for people who will be investing over the next years and decades. The cool thing about investing in the S&P 500 is that if a company starts to massively fumble, turn unprofitable, and lose market valuation, it will get booted out and replaced with a better company. All without you having to do anything.
@MIchaelGuzman737 Жыл бұрын
I have saved myself from all the hassle that chaotic market causes. These days the best way to come into the market space is reading, studying, patience and seeking guidance when necessary, due to my line of work i can’t handle my portfolio so i just copy the trades of ‘’Theresa Mary Chamblee" a CFA i saw on Bloomberg business news. It’s been smooth since then.
@kashkat987 Жыл бұрын
@@MIchaelGuzman737 I'm trying to find out how to contact this Financial Adviser since I'm looking for a better investment strategy.
@MIchaelGuzman737 Жыл бұрын
@@kashkat987 You can look her name up on the internet. She's renowned and has quite a following. So it shouldn't be a hassle finding her official webpage.
@kashkat987 Жыл бұрын
@@MIchaelGuzman737 Thanks for this mate. Her website popped up on the first page immediately I searched her, I read through her resume and Did my due diligence on her before leaving a message. So, hopefully she replies soon.
@vivianbrown7264 2 жыл бұрын
When some people think of successful stock traders, they think of multimillionaires lounging in a beach town, making trades and relaxing. That reality is rare, and stock trading isn't as easy or lucrative as it might seem from the outside. Despite challenges, some people elect to stock trade as a part-time job, or they take on stock trading as their full-time gig. If you know your stuff and follow a strategy, you can make money over time through stock trades by adopting the signal of a licence broker
@georgeharold3317 2 жыл бұрын
The best way to find that balance between saving and living is by investing. This way you get to have your saving intact and then live comfortably off the revenue coming in from your investments. Financial freedom is possible, you just need to know what to do and when to do it. I am a living testimony.
@avagarcia6961 2 жыл бұрын
My consultant is Kathy Genelle Brittton I found her on a CNBC interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can look her up online with her name if you care supervision. I basically follow her trade pattern and haven’t regretted doing so
@emilydavis8321 2 жыл бұрын
Nice content. To me, trading the stock and crypto market is way better than any online investment
@sophiamiller2682 2 жыл бұрын
I've been unsure about the market due to it's volatility, at the same time I still feel it's the right time to make profit cos of the price increase, heard someone speaking of making over $700k during this quick rise and I'm driven to ask what techniques/skillset is needed to achieve this.
@charlottebrown9336 2 жыл бұрын
The best strategy to use in trading stock is to trade with a professional who understands the market quite well, that way maximum profit is guaranteed. Because i have learnt along the way of my investment that research and analysis are important, note that experience is more needed than luck when it comes to the stock market.
@emersonstagnitta65 2 жыл бұрын
One of CNBC's best this year. Tips for the newbies; In your quest to make money through stocks, remember to spread your investments locally and Internationally. The market is a zero sum game and you could potentially lose all. Always make correct inquiries before putting your money somewhere or better still, get the services of a pro(that way, you give little room for error). Made my first million earlier this year this way. Good luck!
@archiemcdougald5466 2 жыл бұрын
Very sound and pragmatic. I have been into this for long and though I won't say I have lost a fortune, but I have squandered quite a lot. If it's not a problem, do you mind recommending the pro you worked with? I could definitely use the help of one right now... I look forward to your reply...
@emersonstagnitta65 2 жыл бұрын
@@archiemcdougald5466 Funny enough, I can honestly relate. I don't know if I am permitted to drop it here, but her name is "Nancy Lynn Lewis". Was in the news a lot in 2018. You can check her out online for more.
@marlenaaj 2 жыл бұрын
@@emersonstagnitta65 She's got a pretty decent bio and seems American. Does she work with foreigners?
@chriswilliams2061 2 жыл бұрын
@@emersonstagnitta65 This right here is the second time I am coming across this name in a week,, My colleague at work seems to feel she's some kind of God sent angel,,,
@thesportsguruu 2 жыл бұрын
Comfortably sitting on this table
@pearlperlitavenegas2023 2 жыл бұрын
Lol 😆 it's only a problem when the little guys do this en masse
@rogergeyer9851 Жыл бұрын
For every option bought, there is an option sold. For all the "dumb" money greedily buying short term options chasing big short term gains, there are INCOME investors selling those options, covered by stock to fully hedge the risk, and making a LOT more income than the dividends on the significant option premiums. There are LOTS of books and articles about trading stock options out there, so it's not like anyone has to go into the risk blindly.
@MultiKingvegeta 5 ай бұрын
What books would you recommend?
@AJohnson0325 4 ай бұрын
watch the tastytrade videos on youtube. If you are new to options, stick to selling cash secured puts on stocks and ETFs you already want to own. It’s easier to make money by selling options because the value of options lose value with time. Your basically selling something that you hope will become worthless because options expire. Doing this won’t make you a lot of money but it’s very high probability and good for beginners.
@brittanynicolette9473 8 ай бұрын
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
@philipcollen482 8 ай бұрын
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
@alicebenard5713 8 ай бұрын
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
@brittanynicolette9473 8 ай бұрын
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $483k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.
@KatherineAnderson-lm8bw 8 ай бұрын
Wow, that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
@user-cr8nd1sy8e 8 ай бұрын
I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
@j7x54 2 жыл бұрын
Regulators don't really care about investors. Only keeping you poor and in the working class. If they did you would not have the PTD rule. That just locked you into a trade for a day so if a trade starts to go against you you can't get out before you lose your profits.
@kennythelenny6819 Жыл бұрын
Yup these regulations are more counterproductive and not necessarily protective. Those who want to trade should do so if they lose they lose simple. Those who'll adapt and win will do so. Regulators do more harm than good.
@robertagren9360 Жыл бұрын
News, the party is over do you want to stay around when the party is over and pay the bill.
@entertainmentseries8715 2 жыл бұрын
Regulators want to protect retail investors 🤣🤣🤣
@ryanocillaslaw9404 Жыл бұрын
Options are not risky if you know how to exit your position; got to take profit and have a stop loss!
@youtoobization 2 жыл бұрын
I love how this video only talks about how terrible options are and that you could lose all ur money but never once talks about the exponential gain potential of options. If options were so terrible, then why are they so popular with traders?
@jungleent9714 2 жыл бұрын
It’s all fear propaganda they do the same thing about starting a business is so “risky”
@glennpearson9348 2 жыл бұрын
Not entirely true. Try 2:12, for example.
@maxmoser412 2 жыл бұрын
True, but remember a lot of Wall St traders make money regardless of if they win or lose their clients money. Many also have no legal obligation whatsoever to do what's in the best interest of their clients, nor do they care about their integrity. That's how the Wall St casino always wins.
@DopeItzTheeOne 2 жыл бұрын
They just trying to scare retail investors options can dangerous if you’re yoloing otm options other than if you’re using charts like TradingView and getting the premium version with best indicators you’ll be good I’ve been trading options since last summer and at this point I make more a month trading them my gross take home pay from my job.
@anna-gs6hp 2 жыл бұрын
Options are a valuable instrument for insurance and leverage! Idk why CNBC claims its sooo "risky". Maybe they've read too many Reddit posts about people buying OTM option contracts with an expiration date a week from now? Just a guess lol
@bluezklewz8351 2 жыл бұрын
Institutional investors are scared now that retail investors are being exposed to all of these products because they will no longer have their edge. People are free to make their own decisions. AMC and Gamestop shares rose because of the demand. Whether or not that the price is reflecting the “true intrinsic” value is irrelevant. The market price is determined by how much someone is willing to pay, so retail investors stuck it to the man when those institutions shorted the stock. Good on them too, who says investors have to play by the rules. If they get caught with their pants down, then thats the risk they took by shorting the shares.
@NickPlaysGamesX 2 жыл бұрын
My advice for investing priority: 1) Real Estate 2) Tech ETFs 3) Company's you believe in long term . Options are no different from gambling in the casino
@NickPlaysGamesX 2 жыл бұрын
@Beta Weighted Betting on whether a stock is going to go up or down based on some "catalysts" isn't gambling to a certain degree? Nobody in the world knows what stock will go up or down unless you have insider information, so with that degree of uncertainty you buying calls or puts is exactly what gambling is. As someone who's made over 50k in 2020 over options and subsequently lost half my profits this year alone, i think i know what options trading is
@johne1071 2 жыл бұрын
Is it the same , risk , to in vest in options on the Chigago Stock exchange. Corn and wheat futures , options etc. Is it better to learn on the commodities market?
@sammyhagger12 2 жыл бұрын
Keith Gill/RoaringKitty is legend. Don’t make him out as a bad guy.
@njperuviankid Жыл бұрын
i think you can close your position before expiration day and profit the same or more than level 3?
@manp1039 2 жыл бұрын
i have been actively buying (mostly) and selling stocks since about beginning of 2020. It has been huge learning experience. I have not touched bying or selling options. I am not ready for this. Perhaps later in 2022, I may be ready to sell an option as an experiment. For now, the closest i have come to buing and selling options is bying ETN, with deploy covered calls, such as QYLD and XYLD. I pay their expense ratio, and receive a monthly distribution. Their pros do all the work of sorting out selling covered calls. I am able to generate about 12-15% in anual distributions, paid out monthly with these.
@user-dt9qj2il8v 6 ай бұрын
that analogy of calls and puts is on point. I'll never forget it.
@nathanbachmann4304 2 жыл бұрын
Great video really. also i agree with your opinion, For the newbie if you are actually trading in the crypto space and you don't have a sound mentor. Then you are certainly going to get liquidated in 90% of your trades. Yeah that's the sad truth. For a start you need a good and experienced hand to guide you. Trust me, trading isn't difficult as we see it. With the right information and guide, you can earn hugely monthly.
@reyansh437 2 жыл бұрын
You're right! I have lost a lot trading all by myself without a guide. It's been an uneasy ride for me. Who is your mentor please. I actually don't mind paying.
@nathanbachmann4304 2 жыл бұрын
@@reyansh437 That's sad. i totally understand. i actually lost too at the early stage and then i had someone to manage my account and i watched his strategy and how he does it. Anthony Kulan has been my mentor and i trade using his daily signals
@backupwavetradingfrance 2 жыл бұрын
First understanding the financial market and how it works then you need to know how to study the market charts. That's all you stand to get when you start trading with Anthony. he's highly recommendable.
@vinhecktor6442 2 жыл бұрын
Trading without any guide is so risky, you're right. you need to get a good mentor to guide your trades.
@emilyspruill8220 2 жыл бұрын
How can i get in touch with Anthony please?
@Sharpshooter649 2 жыл бұрын
The Wheel Strategy for options is still pretty good
@brrianland 2 жыл бұрын
What I would do is taper the amount that can be risked with options, on any account that hasn't seen option trading before. Like $100 the first month; $200 the second month; $400 the third month, etc. Also, Pattern Day Trading rules clearly, CLEARLY are what drive most poorer people into options trading - this includes myself when I first started. Pattern Day Trading rules make zero sense, do not protect, and clearly harm. Abolish them. Some rules are appropriate with options to protect traders, but they need to be good ones.
@jackmcelroy4676 2 жыл бұрын
Please stop regulating the market
@TruckerLerone Жыл бұрын
For what? These are free markets
@brrianland Жыл бұрын
@@TruckerLerone They're absolutely not free.
@TruckerLerone Жыл бұрын
@@brrianland If I freely rake my money in and out that’s what we call freedom
@brrianland Жыл бұрын
@@TruckerLerone Maybe you can, but if others can't, then it's not a free market. PDT must die.
@ozonethedon 2 жыл бұрын
Lol the blaming starts 🤣🤣😂😂😂
@tedwarren8092 2 жыл бұрын
Is the scenario that the gentleman at 12:25 in the video the same as a "pump and dump" scheme ?
@dave35311 2 жыл бұрын
Out of the money covered calls, with a strike price higher than what you paid for the underlying isn’t too risky.
@alexhue752 2 жыл бұрын
Casio strategy applies. People lose money because they stick around instead of cashing money when money is up. I remember one of the best female traders saying" If you watch the tape more than 45 minutes a day during market hour you will lose." Place conditional orders (buy and sell) before market opens and walk away.
@valentinaalaben4791 2 жыл бұрын
Thanks so much for this video, I'm nearly 32 trying to understand the market, I spent about 8 hours just on this video, taking notes and trying to get at least beginners knowledge, and I have to say that out of all the videos I watched, this one helped the most. Thanks again
@tracyholian2944 2 жыл бұрын
having professional mentor is also very important when it comes to trading, without proper mentorship, one trend to opt out of the market early enough. I do my investment with mrs Stacy Griffin
@kellywhite6344 2 жыл бұрын
I stumbled upon one of her clients testimonies and decided to try her out...I'm expecting my third cash out in two days
@rondastroud6788 2 жыл бұрын
Mrs Stacy is indeed a forex mentor. With my first investment of $7000 I got a ROI of $70,000 in a week
@rondastroud6788 2 жыл бұрын
@Betsy Schwartz I don't really know about that, but I think There is really no country restrictions in her company...I'm investing with her from Switzerland
@philipastron4332 2 жыл бұрын
What surprises me about mostly is that, she gives her clients access to her trading site whereby they can monitor their trades on daily basis
@LazySoilder 2 жыл бұрын
But what does option trade add of value in the economy? It appear like gamble to me.
@DragonKingGaav 2 жыл бұрын
Getting rich quick is the oldest scam in existance! Time *IN* the market beats *TIMING* the market!
@MrPs391 2 жыл бұрын
Not always bro lol market from 2000-2008? Lol
@Jodingowal 2 жыл бұрын
Just look at PYPL and where it stands? Still in Jun2019, meaning that if you sit on PYPL, you simply wasted 3 years for no gain. I still think PYPL will eventually go back up 300 at some points, but when? That's the question you want to answer before you say "Time in the market beats timing the market". Many people are saying that, and there are some truth in it, but it's not always true.
@Healthyconsumer 2 жыл бұрын
@@Jodingowal that saying is usually implying a much longer time horizon, and historically referring to the broad market. 3 years is hardly “time in the market.” If you’re thinking in terms of horizons less than 5 years, you’re probably more of a trader than an investor, which is fine if you want to do that, but still doesn’t discredit that saying.
@nebaadi1 2 жыл бұрын
Please some one tell me how to calculate currency futures
@EMan-cu5zo 2 жыл бұрын
I normally just sell covered calls on investments I have or plan on holding long term for extra income. If it is called I just look for another entry point later on and keep the gains I had plus the selling premium. Most of the time it doesn’t get called and I keep the premium and the asset. Not super risky unless you where just swing trading a company and you sell a covered call with it. Then if it tanks you take a larger loss because you have to buy to close the option and then take the loss on the stock if you really didn’t want to keep it anyway.
@AJohnson0325 4 ай бұрын
I would think the main problem with this would be having to pay taxes if you have to sell a large position. Am I right? I’ll be looking to sell way out of the money covered calls in a retirement account once I have enough shares. It wouldn’t be a lot of money but it’s basically free and will compound tax free.
@EMan-cu5zo 4 ай бұрын
@@AJohnson0325 you do have to pay taxes but that means you’re making money.
@Hello-gc1cb 2 жыл бұрын
was that dude doing an interview in the laundry room?
@Webdevelopmentya Жыл бұрын
i'm guilty of playing options, my cousin taught me before the pandemic but I could never fully understand it so I did my research and studied it online. I remember making a lot of money from AMC but honestly I got lucky. I bought AMC because there was a rumor that Amazon was thinking of buying AMC . So i bought contracts for a year out with a strike price 3 to 5 dollars close to the money. all of a sudden three months in, wall street bets gets a hold of it and shot it to the moon. I sold literally at it's all time high which I got lucky again because I didn’t have an exit strategy especially when you see money move in your account at a rapid pace. I was able to at least see what was clearly luck I cashed out and before putting any more money back in the market. I took the time to get the education and learn how to trade effective and would practice with paper trading first.
@MariaDeigo8 2 жыл бұрын
*Great video. We all strive towards financial stability and a better life. It is easy to achieve this through the right investment, by living frugally and budgeting. I’m glad I learnt early in life to work hard for financial freedom*
@MariaDeigo8 2 жыл бұрын
In my opinion, venturing into a good investment, is not just a strategy for generating passive income but a profitable saving method for future expenses. Those who fail to make the right decisions early in life end up regretting. Nevertheless, investing can be difficult and risky doing it solely. For this reason , I advise on seeking help from professionals(financial advisor). It’s not just watching videos and reading investment book but the challenge is using it well.
@whitneyhouston6888 2 жыл бұрын
@@MariaDeigo8 I’m truly inspired by your words. I’m very interested in investing and I’ve a good sum of money which I’m ready put in with the right information. My fear is losing my money in a wrong investment. For this reason, I’m willing to listen to your suggestions and ideas on how to invest wisely.
@MariaDeigo8 2 жыл бұрын
@@whitneyhouston6888 I firmly believe that the success of any investment depends on having the right information, regardless of what others say, do whatever you set your mind to. Warren Buffer always says "be greedy when others are fearful and be fearful when others are greedy". This is certainly the trick to succeeding even when others fail. I made *$200,000* working with *Donald Nathan Scott* a licensed *financial adviser* . It’s been a promising experience so far with him.
@MariaDeigo8 2 жыл бұрын
@Maxime Louise As to get more details about my coach; *(Donald Nathan Scott)* quickly do a web check where you can connect with him, do your research with his full names mentioned.
@MariaGarcia-gv8hj 2 жыл бұрын
This is precisely the right information and I hope it motives so many. To win big, you just need to think outside the box. Leading Successful investor, didn’t just get rich doing what others did but took there time investing despite all odds to get to the top. Working on my path towards financial independence, I realized that; “the greater the risk , the more the rewards”. Just a personal advice to anyone who wish to invest, I recommend having a Personal financial planner.
@kneegear5123 2 жыл бұрын
8:23 Alright, so you’re telling me that the closer in the money option @$925 ($27) costs less than the further out of the money contract @$1000 ($30) Great example 👍
@AroundAndAround2 2 жыл бұрын
The higher profit probability for 925 call has a lower $27 price due to collecting the premium from selling the 1000 call (2nd leg of the option spread). Good example to illustrate the basic idea of trying to improve odds for making money on every trade.
@kennetharch3750 Жыл бұрын
Thank you Great info👌
@senzen2692 2 жыл бұрын
On one hand you have the wide gap between finance and actual business, with the image of financial types playing with other people's money and getting a bailout if things go bad; on the other you have millions putting more faith in their abilities than they should: "if that feckless finance bro can do it, so can I".
@brendansmith7842 2 жыл бұрын
Options trading is also riskier than it should be for many traders because they refuse to take losses and double down on the losers. Since options can lose value so rapidly, especially if they're close to expiration, this is a sure way to quickly blow up your account. Instead, losses most be cut very quickly. Gamma squeezes are real though, when people buy many, many call options the market makers hedge by buying shares, causing the price to rise further. If you know what to look for you can get an edge instead of it being a slot Machine.
@m.t.valenciatrading Жыл бұрын
How in the world is the ATM 925 call option in there example at the 8:05 mark cheaper than the OTM 1000 call option? These people are getting the basics wrong.
@layhosik 2 жыл бұрын
“Coordinated” does the MSM really think we are all that stupid? Again, putting the retail investor as the bad guy. I’m sick of it.
@johnmininger7472 2 жыл бұрын
I think you are reading way too much into it.
@MrPs391 2 жыл бұрын
Going onto a forum and convincing everyone to buy is literally coordinating lol
@layhosik 2 жыл бұрын
@@MrPs391 convincing who? That’s not what he did. He presented facts on his KZfaq channel. He didn’t convince me. I bought my own shares because I did my own research and I love the companies. The hell?? The shills come out by force...
@johnmininger7472 2 жыл бұрын
@@layhosik - Right, we're shills because we happen to disagree with your take. I'm a retail investor, most people here are, and while I chose not to participate in the meme stocks, I did pay attention to the ongoing discussions in reddit. Whether it was organized or not, it most certainly was a coordinated effort revolving around a few stocks by a group of retail investors.
@jesuschrist8 2 жыл бұрын
Risk of Bull Call Spread is if no one buys the Call Option you are selling. And if the price falls.
@chiragarora2827 2 жыл бұрын
You can't lose more money than the cost of the option. At the end it's always your call to exercise the right to buy or the right to sell.
@Alex-us2vw 2 жыл бұрын
Not true. Sell a 50 strike call for $4, now what happens if the stock goes to $70 and you get exercised? You will need to go buy the shares at $70 to cover the calls you sold and lose way more than the $4 premium you received
@chiragarora2827 2 жыл бұрын
@@Alex-us2vw Why wouldn't you instead buy puts in that case?
@kristyluna8527 2 жыл бұрын
Are people still trading with the crash?
@mav3420 2 жыл бұрын
Some investors look to their investments as a source of income while others use it as a means to grow or preserve their wealth.
@senahmabuds3374 2 жыл бұрын
For new investors, getting started can feel overwhelming. Risks loom large, and complicated, unfamiliar financial jargon can be intimidating.
@rajaaminu 2 жыл бұрын
Been trying to get started but i end up loosing out. Do you have a professional broker???
@cvrajendra 2 жыл бұрын
Following this options trading strategy, I made $ 3.47 million with a capital of $ 255K
@stevenyia2778 2 жыл бұрын
Bot
@jiaweichew3370 2 жыл бұрын
Main problem, trading in general is very rosy regardless of options trading or stock trading. From my experience the options trading is the most rigged as you have no control and you are betting against a volatile item. It can also be noted that even though the experts have a leg up, it can be said that 95% of traders including experts have a bad trade. (FYI some of them have degrees which benefit them yet still fail)
@viirusiiseli Жыл бұрын
What are you even on about? Rigged? No control? Betting against a volatile item? Literally just don't buy short term expiries, far OTM, or dabble with illiquid options. Already following those rules will limit your risk greatly. Then if you actually make your decisions based on fundamentals rather than based on hopium, you'll most likely end up in profit.
@badgerfishinski6857 9 ай бұрын
Covered calls...... Conservative method.
@davidfrisoniv1835 2 жыл бұрын
Options are just speedrunning the stock market.
@lingwallace5265 2 жыл бұрын
Recently I got into the stock financial niche, and I’ve taken a deep dive into investing, My advice is always to keep the majority in ETFs that cover multiple sectors. Then have a couple stocks, as a small percentage, picked out that you feel personally attached to or interested in. particularly dividend growth investment as it interests me. Tried several methods trying to figure out the best approach to building my portfolio.I made my first million to my portfolio from great company stocks. So far, I’m making progress with the help of my financial Jane Marie Kunak . Back to the video, wonderful job there, always look forward to your next content.
@shannonshuntel2958 2 жыл бұрын
Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.
@sandrapiccolo5800 2 жыл бұрын
I invest in stable stocks, my rule: if you previously liked the stock, then you should love it at a discounted price.
@adambenson6781 2 жыл бұрын
So i found her webpage by looking up her name online.... Her resume is quite outstanding, I'll be writing a mail to her shortly.
@tomdaniels3392 2 жыл бұрын
ROFLMAO @ LING 🤣😂🤣😂 your first million 🤣😂🤣😂 pretty sure you posted this just so you could brag about your portfolio, wow what a narcissistic post. but you won't know that because a narcissist wouldn't understand if you were giving advice you could leave out the "first million" B.S. Me and Elon are cracking up on this one while taking a rocket ship to Mars........I spent my first million on the ticket!!
@thehumbletrader9419 3 ай бұрын
Good insights
@alparslankorkmaz2964 2 жыл бұрын
Nice video.
@ApexFuturesTrader Жыл бұрын
Last October started with $350 and end the month with $4,600. Spend time understanding and paper trading before using real money. Cash account was the best way for me to start. Start with SPY cheap contracts. You don’t need to trade expensive stocks.
@chevon1920 2 жыл бұрын
Most people have access to spreads. I do and I have no clue what Im doing, 😂
@teknolozik 2 жыл бұрын
5:42 that's brilliant
@j7x54 2 жыл бұрын
You will never take the emotions out of trading because everyone is looking to win. No one sane would be trading looking to lose. Being able to pay your rent on time, feed your family have money to take care of the little luxuries you may want. Those create joy, calm. Losing creates sadness,anger.
@CokemanChatt Жыл бұрын
" my heart goes out to them" 😂😂😂😂 certainly not his profits. 😅 11:50
@arbidwiwijaya6245 2 жыл бұрын
options that are binary Are they one and the same? Sorry, I'm a beginner in the capital market, so I'm still confused about terms in the financial world.
@mizuhonova 2 жыл бұрын
Also, what happened to doge to the moon lol. There was only two months throughout the whole year where you would have made money if you bought in AND sold within that time. The trading memes these days are like a pyramid scheme of hype. Most people get in too late and try to continue to hype up other people so they have a chance to get out.
@menochivo9507 2 жыл бұрын
good overall video, HOWEVER, it glosses over a ton of info about options
@FinancialShinanigan 2 жыл бұрын
CNBC needed some clicks lol perfect video topic
@MrGobalize 2 жыл бұрын
Delta/Gamma/Vega. Think about why you are trading options and what's your payout is compared to regular stocks. Enough said, do your own due diligence, there's money to be made if you can use options to your advantage.
@charleshacker765 3 ай бұрын
This was actually a very well our together explanation of options.
@itissrinivasan Жыл бұрын
Isn't the Tesla example at 7:35 wrong ?
@JamesBrown-ug2tm Жыл бұрын
The opening line: a hoarde of investors... correction GAMBLERS.
@Ksnieup 2 жыл бұрын
Very good information
@bottomfeeder1307 2 жыл бұрын
I'm a newbie with options and need a tough question answered. Please help.. When I place a market order to "buy to open" a call option, and once it's filled, I then place a "stop loss order" at say 50% of the purchase price paid for the option, can I possibly lose more than that? If not, then why are people losing their life savings? I don't understand.
@LawrenceMarkFearon 2 жыл бұрын
12 year options trader here. People are losing their savings trading on "margin". Or simply put borrowed money traded against the balance as collateral. They are highly leveraged in this position on an already leveraged financial instrument. , and you still must come up with the interest you owe on the loan.
@bottomfeeder1307 2 жыл бұрын
@@LawrenceMarkFearon Thanks for responding!
@bottomfeeder1307 2 жыл бұрын
@@LawrenceMarkFearon Just curious.. Are you a day trader? Swing trader? And why do you find that to be better than the others?
@LawrenceMarkFearon 2 жыл бұрын
@@bottomfeeder1307 Definitions are too rigid because I've done both depending on the situation. Sometimes simultaneously.
@anna-gs6hp 2 жыл бұрын
For everyone that is second-guessing options from this video: Options may be risky, but that is true for every financial asset in the markets. Please do your research on key statistics for options such as implied volatility, intrinsic value, time value, the Greeks, etc. There are great resources like Investopedia, The Balance, etc. to help with the basics of options. Also... You might "lose" all your money, but you will never owe the brokerage money for going negative, which is safer than going short on pure stock. Just don't put 100% of your account value into one option contract. Happy gambling 😃
@Void-yl9om 2 жыл бұрын
It's funny actually that they have a number of rules against Stock trading. Let alone, options trading. There's an age restriction, PDT, level 3 restrictions etc. while the only restriction that they impose on gambling is an age restriction. It's extremely obvious that these rules and regulations aren't meant for our well-being but for the several multi-billion dollar hedge funds' sake. The wealth become wealthier and poor get poorer!
@jeroenreimink4977 2 жыл бұрын
"never going negative" remember that for every option you buy there is someone else selling it. Thus, when writing options you could lose massive amounts (when writing puts) or technically infinite amounts (when writing calls).
@anna-gs6hp 2 жыл бұрын
@@jeroenreimink4977 Yes, but the basics of options works in such a way you will only lose 100% of the position and never owe any money to the brokerage (aka a margin call).
@anna-gs6hp 2 жыл бұрын
@@Void-yl9om omg i just realized we have like the same profile pic 😂 Anyways, there's a lot of new brokers like Webull which is what I use, and they give retail investors so much room to get into new markets (which is how I'm able to trade options). But regardless, the whales will always be the ones making big bucks!
@DopeItzTheeOne 2 жыл бұрын
Can’t be yoloing your way through it and gotta invest in yourself if you’re going to do options trading, I make myself about 2 to 4 grand a month trading options.
@sumithbhat 2 жыл бұрын
1:17 basically he means if are a hedge fund with inside information then it's a wonderful tool
@ladasodaexplains3355 2 жыл бұрын
"Sir, this is the casino"
@amastal1 2 жыл бұрын
Don’t buy options It’s better to sell them
@AlexanderTheGoodEnough 2 жыл бұрын
sorta. you can get stuck catching a falling knife with cash secured puts...then again, that's just an opportunity to start selling calls against those newly assigned shares.
@cosmicfantastic 2 жыл бұрын
just a coincidence that the sponsor of this video doesnt appear to offer to trade options on their platform?
@pythonxz 2 жыл бұрын
Credit spreads, just use them
@elisaberry8944 2 жыл бұрын
👆👆✍️📩📩 📥📥
@kihro 2 жыл бұрын
If you gonna gamble your money anyway I rather you do it in the stock market than in a casino or lotto. Just don't short or use leverage.
@Xmj202 2 жыл бұрын
Im just learning about the bull call spread so ill explain it in comments to help me understand.With an bull call spread in this situation when the stock price is 900 you buy a call with a lower strike of 925 for 27 dollars so break even is 952..then sell a 1000 call for 30 dollars both at same expiration date so the net gain to is 3 dollars at that point. if the stock goes above 952 to 1000 you make a profit. After 1000 the sold call is in the money. So the 925 call that was bought can be sold and with that profit you can buy to close the call.
@user-uj6oi6bg9z 2 жыл бұрын
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@user-uj6oi6bg9z 2 жыл бұрын
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@user-uj6oi6bg9z 2 жыл бұрын
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@boomsuga 2 жыл бұрын
Excellent content !
@SiddharthMalik 9 ай бұрын
Can't US traders trade in index directly???
@IamMonikaDLC 2 жыл бұрын
2019 wants their Tesla call example back. 30 dollars lol
@Rndhld 2 жыл бұрын
People are and should stay be free to purshase anythning they want, when they want for any reason they might see fit if they have proper collateral to to be accountable for their actions. That said, education is the greatest risk reduction option trading strategy there is. A given market participant can lose 20% out of a correction of an underlying itself under a month. An individual can go bankrupt over any business endeavour for that matter, it happens every day. ;)
@pawlaknowicki9445 2 жыл бұрын
Investing in today is priceless because tomorrow isn't promised, trading bitcoin, gold, silver or any other cryptocurrency secure a better tomorrow.
@graigsmith4673 2 жыл бұрын
Most people have been having a lot of failures in investing because of poor orientation and bad experts.
@troycarlisle772 2 жыл бұрын
That's true
@marthajones1450 2 жыл бұрын
I do see it that forex and crypto trading is one of the profitable money exchange services that elevates investors and their financial status.
@cillianjames3828 2 жыл бұрын
It's really needful for beginners not to settle for videos alone or they will see themselves losing all their money just like me when I newly started trading with KZfaq videos
@a.loismurphy9070 2 жыл бұрын
I'll recommend Mrs Patricia Flores to anyone who wishes to invest in crypto trading, her strategy is working for me. I'm making good profits from bitcoin trading
@Carmador 2 жыл бұрын
Do a video on how Melvin Capital created the perfect market conditions for retail investors to profit and what that redistribution of wealth looked like.
@zentradingmastery3709 2 жыл бұрын
Awesome!
@malikwilson9844 2 жыл бұрын
I think they upset the retail investor got the hang of it in months and it took them years of laborious work and 💰
@riccogee 2 жыл бұрын
Do a story on the clear market manipulate that's going on. Yall know them dudes. Just as the SEC and FINRA. You wanna do a story then do that one.
@brandonjones8059 2 жыл бұрын
I made so much money on options. Be careful for wide bid/ask spread for more liquidity. Always buy over a month out because of it goes wrong you don’t lose everything. DONT play earnings it’s a trap. The Greeks will burn you. Also options allow hedgefund to control a stock because they can make a synthetic share by buying a call and put at the same strike.
@kevinswitz875 Жыл бұрын
AMC in Levittown moment
@edwindano 2 жыл бұрын
My name is Ape and I'm an options trader addict 🤣
@elisaberry8944 2 жыл бұрын
Hit me up 👆📥
@bcrawfordiv Жыл бұрын
Unsophisticated investors + complex options trading = five alarm dumpster fire
@nathanielsingleton6302 2 жыл бұрын
This economy is built on thin ice pushing retail invested further out on the risk curve. How did they overlook that???
@badgerfishinski6857 9 ай бұрын
Options Action cancelled. The chart master was wrong most of the time tho. It was fun to watch tho...cuz I learned some mechanics of option trading ...and njoyed watching them discuss the trades
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