Out of the Money Options - Explosive Growth but a Really Dangerous Pitfall

http://www.learn-stock-options-trading.com learn why new traders are drawn to out of the money options. Hint: they can "potentially" make more money. Related text lessons to go with those videos: http://www.learn-stock-options-trading.com/out-of-the-money-options.html Also, be sure to check out our channel: http://www.youtube.com/user/optionstradingmentor

Comments

1. I know this video is a few years old now, but I had a question;
   
   Let's say I bought an OTM option at .01 per contract, and due to market movements it's now worth .08 per contract, but still OTM.
   
   I can sell my options before expiration and still make an 800% profit without the option ever reaching it's Strike Price right?
2. I would love to take a class. where do I take a class for covered call writing .
3. I bet 90% of option brokers make money from people who don't have a clue how it works..
4. Super .... What you mean is "expire worthless"  If you short options that expire worthless or are out of the money no one will excersise them and you keep the money .... so stock at 100 .... 110 call you SOLD or a 90 Put you SOLD you would keep everything.
5. It depends as option pricing involves 6 factors and stock price movement is only 1 of those factors. You "may" make money initially, but any option out of the money near expiration usually loses value really really fast. It also depends on the other 5 factors.
6. What happens if you buy one call option out of the money for next weeks expiration.the price moves close to your strike price but still at out of the money at expiration ?
7. nah sorry I don't do advanced. I'm a super simple guy and cater to beginners.
8. do you have any more advanced videos
9. ????
10. ha ha good one!
11. What program do you use?