Ep 3.4 - Selling Calls | Step Up to Options

We've covered buying options. Now it's time to flip calls and puts on their heads and talk about selling options. In this video, we'll discuss how selling calls is bearish, and we’ll explore how buyers see a trade and how sellers see a trade. See more from the Step Up to Options series: http://ow.ly/OotZn Subscribe to our tastytrade YouTube channel: http://ow.ly/QZM60 ======== Step Up to Options ======== Step Up to Options is an options trading tutorial from dough.com and tastytrade.com. Want stock options explained the easy way? This is the video series for you! Follow dough: On our YouTube channel: http://ow.ly/QZM60 Twitter: https://twitter.com/doughtrading Facebook: https://www.facebook.com/doughtrading LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/doughtrading

Comments

1. Don't like the joke about bribing the police. You didn't actually pay a police officer. Therefore you are committing a great sin, undermining the integrity of civilization, and slandering the integrity of God and law. I ask you to repent and amend this wrong now and in the future. What we do determines eternity.
2. it makes me feel better about my self when the girl tells me how proud of me she is
3. You said "We could just let the trade end when the call expires since we already know we can keep most of what we were credited"
   
   I'm not sure that I understand that statement. If the broker is originally loaning you the calls because you 'sold them' when you 'didn't really own them' then don't you have to end up purchasing them at some point before the expiration date? How can you just let them expire and not have to purchase any calls in order to close the trade? Otherwise wouldn't people just 'sell calls' all day long and then let them expire as the time decay is guaranteed to occur thereby devaluing the call at expiration and then making us money with the credit that we've gained by our originally selling them...... Am I making sense??
4. Hey Rachel If I want to call you right now, what would your strike price be??
5. Hi guys, is this kind of like "shorting?" You don't have to buy a call in order to sell it, correct?
6. In the last example, if the stock price stays the same, why does the call writer not get all of his/her credit? How is the call writer's profit calculated when the stock price stays constant?
7. So... If you bought a call option and now the stock price is above the strike price you should let it expire right? Because if you sell it above the strike price you have to buy the option contracts at your strike price? And if you bought a call option and the stock price is below your stock price you should? Buy it? How about if you dont have the capital to purchase the stock? Thanks for all your help.
8. ok can you guys explain this to me, i bouth a call in hopes ti day trade it, the stock kept price&chart kept going up but still i was lose money, what is happen here?
9. OK, nice stuff there girl butt you gotta stop jumping around and wringing your fingers. It very distracting FYI.
   Secondly, PLEASE cut that crazy crack-driven music in the background or at least cut the volume of it to less that half what it is.
   Thirdly slow the fcuk down. You talk TOO FAST for whom you are presenting this material. Beginners; IE: See Cynthia Coc below.
   
   These videos almost seem like a promotion for the buying and selling of options by you guys with all the hoop-la and drive-happy with energy music. Options are psycho-messy in understanding and not for most people regardless of how you present them here. Guys get REAL please.
10. very confusing
11. Alright so since you are being credited, that credit can build the more the stock goes up right? And when it goes down/OTM your lossing the credit which is a good thing. But are you actually overall profiting with the initial credit added? correct me if Im wrong.