Ep 83: Option Trading - Theta Decay & How it Works!

Ep 83: Option Trading - Theta Decay & How it Works! ★ SUMMARY ★ This week we’re talking about Option Trading and Theta Decay and How Does it Work. And how does it affect your trades. The last couple of days we’ve discussed day trading, when to trade, when to sit out. We’ve also talked about the Intraday action and day trading and social media as well. Typically, for most people, buying options is a waste and it’s a waste in a sense that they don’t understand how this Theta works and they keep losing money and they don’t understand why they keep losing money. And if you didn’t know this is the reason why you’re losing money. Posted at: http://tradersfly.com/2016/05/ep-83-option-trading-theta-decay-works/ ★ SHARE THIS VIDEO ★ https://youtu.be/jXLHoWeP1vk ★ SUBSCRIBE TO MY YOUTUBE: ★ http://bit.ly/addtradersfly ★ ABOUT TRADERSFLY ★ TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing. Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better. Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us! STOCK TRADING COURSES: -- http://tradersfly.com/courses/ STOCK TRADING BOOKS: -- http://tradersfly.com/books/ WEBSITES: -- http://rise2learn.com -- http://criticalcharts.com -- http://investinghelpdesk.com -- http://tradersfly.com -- http://backstageincome.com -- http://sashaevdakov.com SOCIAL MEDIA: -- http://twitter.com/criticalcharts/ -- http://facebook.com/criticalcharts/ MY YOUTUBE CHANNELS: -- TradersFly: http://bit.ly/tradersfly -- BackstageIncome: http://bit.ly/backstageincome

Comments

1. I'm going to watch this one again to get better acquainted with options and the like
2. Hi Sasha what about selling strangles / short puts after earnings announcement? Tasty Trade really encourages this, even for new traders, welcome your views. Thank you. Sunil
3. awesome again I'm starting to be profitable thanks so much
4. Thank you Sasha for posting
5. 25:45 The open interest is NOT people, it's CONTRACTS ! It could be one person that's traded 2200 contracts.
6. Just to clarify 1 thing for those looking to learn to trade options, the delta shown around the 9:50 mark is on a CONTRACT basis, i.e. x 100. The delta shown on an options chain is on a per share basis. Delta can never be more than 1. That's a $ for $ move. The example with FB is an out of the money option. The option delta is 0.3. When Sasha says "for a $1 move in the stock, I'll make $30" he means in total, not on his contract value. The contract value isn't going to go from $2.30 to $32.30.
7. Tesla is either a buy now (less likely) or a buy in a few weeks or so (more likely). I'll keep ya posted.
8. Hi, I'm a university student who are very interested in trading options, could you please tell me what option stimulator you are using?
9. How much for your you make this sound simple do you coach?
10. Can you profit on an option even if you don't own the stock? Can you sell an call  if you bought it at 75 strike and know the market price is 125 can you sell the contracts for a profit even if you don't own the stock?
11. Hi, what broker do you use to trade options?
    I currently use TDAmeritrade but they're pricy and I trade lots of position..
12. Great Video as always Sasha very valuably information if your a Option Trader. Quick question, when it comes to Theta whatever the Theta Price price is that price decay is for each individual contract so if I have 10 contracts that Theta price decay is times ten correct?
    
    Thanks again