/otg/ Options Trading General

BUY ETH AND BECOME A MILLIONAIRE!!!!!

How did you learn to trade options, or other derivatives you might trade? Do you know any specific youtube channels that you think might be good (or any other resources)? Can it be done through self-learning?

>>2441246
i watched the "where do i start" video series on tastytrade's website

>>2441235
no cryptopeasants allowed

>>2441219
please explain to a complete retard what an option is

>>2441287
Options are a type of derivative security. They are a derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. The right to buy is called a call option and the right to sell is a put option. People somewhat familiar with derivatives may not see an obvious difference between this definition and what a future or forward contract does. The answer is that futures or forwards confer both the right and obligation to buy or sell at some point in the future. For example, somebody short a futures contract for cattle is obliged to deliver physical cows to a buyer unless they close out their positions before expiration. An options contract does not carry the same obligation, which is precisely why it is called an “option.”

Basically it's a right to buy or sell a particular thing at a specified price within a set time

>>2441312
Its the right to buy or sell something, not a contract that if you break you get sued, if i understand you correctly?

File: AAPL.png (160KB, 1688x994px) Image search: [Google]

160KB, 1688x994px

>>2441219
Like for exmple
Stock being trade: AAPL (Apple)
Type of trade: Long Call Vertical Spread
Reasons: Apple just took a massive dive down and most likely will correct itself
>>2441354
Right

>>2441219
https://www.youtube.com/watch?v=kmQ20J_3K7Q&list=PLPVve34yolHY43YaBegHMzN9WjrTnQfFr

>>2441374
So is trading options basically like legitimized gambling?

>>2441398
Exactly

>>2441411
So if I understand this directly the process is like this.
I want to bet that aapl will go back up.
Someone else wants to bet it will go back down.
We make an agreement that if it goes up I take the money he was willing to bet, and vice versa if it goes down.
Right?

>>2441442
If it goes up, you make money, if it goes down, the other person makes money.

PLEASE /BIZ/ WE NEED MORE ANONS TO FIND OTHER STOCKS TO TRADE

>>2441456
good luck with that, I dont think this will reach any decent popularity status on here until the stock market is crashing.

>>2441475
Thank you.

Yea the reason why I'm doing this hopefully ongoing general is simple.

Options trading is now becoming the new way to trade. You would make more money off of options trading than by buying straight stock. If people really understood how the options trading game is done, they would be making multi millions and retiring early.

I'm going to bed now. If anyone on /biz/ has any stocks that looks like it's worth having a specific option trade on, feel free to post it here.

>>2441504
isn't options trading way more unstable than direct stock trading? you aren't influenced by the success of a business but rather your judgement of them.

cryptocurrency is a bubble but it seems more predictable when looking at the marketing scheme each coiner makes.

>>2441582
It's your judgment about the company, the stockholders and buyers, and the success of the business.
For example when United Airlines beat that guy up their stock dropped. It doesn't take a genius to see that that's not going to have a large impact on the profitability of such a huge airline, the market will be buying again after the commotion and panic selling is over because they're still a profitable company, and that it would be a good bet that United would correct itself like OP said Apple will correct itself, so you'd make the same bet.
Looking at their stocks they took a hit on April 10, when the passenger removal happened, then by the beginning of May they were back above where they were April 10.
All that really matters is the money. The emotional stuff doesn't matter in the long run, so everyone getting mad at United didn't matter as long as they continued to make money.
You could probably find similar cases. Pepsi's newish ad with the protester giving a cop a pepsi is probably one, though I don't remember if their stock dropped. Lots of political stuff during the campaigns that was short lived would also be good examples.