Puts and Calls - How to Make Money When Stocks are Going Up or Down (Part 1 of 2)

http://www.learn-stock-options-trading.com use this formula to take control of your financial future. Has buy and hold dwindled your retirement account? Learn how to use puts and calls and profit in any market environment. Related text lessons to go with those videos: http://www.learn-stock-options-trading.com/puts-and-calls.html Also, be sure to check out our channel: http://www.youtube.com/user/optionstradingmentor

Comments

1. i dont see the diffrence from long and short. so this is just normal stock buying....!
2. Hey can you help me out with a quick question. If my put option is "in the money" or below the strike price, can I just leave it to expire and my broker would automatically exercise it? Or do I have to sell to close?
3. Hello Travis - could we do a spread on calls and puts like the index options. Would it be more expensive to do that ? Also, how does fees or commission ( i've been out of this for almost 30 years) works? Thank you.
4. Just what I needed and at the right time! Thank you Trader Travis!
5. I'm amazed at the info you share, thanks!
6. Dude, awesome stuff thanks!
7. Hi, I am new to trading, and I was wondering if you can let me know if this is what you're saying: for the goldman sacs stock the put option you bought had 100 shares at $1.20 per share. That means you spent $120 dollars, and then sold it at $2.90, earning $290? So, your proft was $170 dollars? Do I have that correct?
8. Anyone in the UK placing these sorts of trades? Any broker recommendation would be welcome - thanks
9. 9,000th subscriber!
10. gem
11. You bought 9 put options for 1.20 and sold them for $2.94 and made a $1k profit? How? I'm used to penny stocks so that's seems like a lot of money to make for 9 shares at $1.20
12. You're essentially buying insurance when locking in a price.
13. I don't completely understand. How does the value of a contract actually change? Is it proportional to the stock price?
14. great video. I've learned a lot. THANK YOU
15. call or put ??????
16. If I sell COVERED Call options with the strike price well above my "average share price" is there a losing outcome?  Seems like a win, win scenario.  1.) Option expires OTM, I get the premium and keep the stock.  2.) Option expires or exercised ATM/ITM I get premium and sell stock for profit.  Is this right?    Been 4 years and these videos are still good, Thanks.
17. So to clarify...
    for CALL you make money when the stock price rises.
    
    On your call example on your video
    
    March 22, 2011 You bought Mcdonalds call options at 20 quantity x 100 x .985 AT 80 Strike Price = $1,970 exp at sep 11
    
    Aug 8, 2011 stock prices rises and now CONTRACT is now at 4.125 so... 20 x 100 x 4.125 = $8,250
    
    $8,250
    ($1,970)
    ----------------
    $6,280 profit. is that right???
    
    So basically as the stock price goes up the contract prices goes up with it.
18. So, to be clear travis, when you purchase a PUT option you are guaranteeing a sales price regardless of market activity? As in, if Google were somehow to lose all corporate value and their shares were to decrease substantially, my PUT option that I purchased would guarantee that when I sell my equity I would receive the contracted price? Sorry if my question is "wordy", I'm currently in my third year of accounting but I have taken great interest in stock option trading!
    
    Regards,
    Jeff Watkin
19. Did shorts not exist when this video was made...? lol
    
    good video though, thanks
20. So you make money by selling the contract for a higher price then you bought it instead of excersizing the contract?