What are Options?

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  • čas přidán 6. 09. 2024
  • An Option is a contract allowing the recipient the right, but not the obligation to transact a known transaction (buy or sell) of a known Asset at a known price in a known pre-defined time frame.
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Komentáře • 323

  • @rahulmaron
    @rahulmaron Před 6 lety +419

    i don't think i understood what option is, but it's interesting to know what happened with Margaret and Jeff next.

    • @christianmoje9787
      @christianmoje9787 Před 5 lety +11

      They have both options to stay nude in the beach ha ha ha

    • @jaguarandi2
      @jaguarandi2 Před 4 lety

      badum tss

    • @fowzi9
      @fowzi9 Před 4 lety +1

      😂😂😂😂😂

    • @yorlett5888
      @yorlett5888 Před 4 lety

      Many thanks, I been tryin to find out about "time decay strategies for options trading" for a while now, and I think this has helped. Ever heard of - Winoorfa Option Olegroson - (should be on google have a look ) ? Ive heard some awesome things about it and my mate got amazing success with it.

    • @maiguelmoreno9027
      @maiguelmoreno9027 Před 4 lety

      Just wonderful, I have been researching "learn options trading india" for a while now, and I think this has helped. Have you ever come across - Liyabrie Options Operable - (do a search on google ) ? Ive heard some super things about it and my mate got amazing results with it.

  • @MakaronCZ
    @MakaronCZ Před 4 lety +18

    Thank God for this video. Trying to understand what an option actually is from the intro to finance textbook was an absolute nightmare. Thank you for speaking human language

  • @weathermayne61
    @weathermayne61 Před 6 lety +34

    Thank you so much for not trying to explain with 15,000 lines and confounded theoretical stock scenarios. You did a great job!

  • @mcjohnrton
    @mcjohnrton Před 6 lety +145

    Jeff will then give his 'option' to Margret

  • @luisurena1770
    @luisurena1770 Před 4 lety +41

    I love how Margaret destroyed the other dude and went to sip margaritas like a g

  • @bertramknoesen9170
    @bertramknoesen9170 Před 3 lety +44

    In such times as this, you’ve got to make sure you consider having a diverse investment strategy. Your portfolio should have exposure to different areas of the market, including small or large-caps of ETF index, international stocks, grade bonds and alternatives like currency market (forex & digital-ledger) as this will help manage the overall risk on your portfolio and in provision for capital gains.

    • @brianrosetti4684
      @brianrosetti4684 Před 3 lety +3

      Thinking big! The best way to invest is by having various stream of income, that’s what I learned trading with a good lad and it works perfectly for me. Just be sure to make profit out of something. It could be in favorable equities or forex market.

    • @keatonmorgan295
      @keatonmorgan295 Před 3 lety +1

      Bertram knoesen
      This is smart tradings I haven’t seen anyone mention this on CZcams. I would like to have my account working in the same method.

    • @allenshaquille8745
      @allenshaquille8745 Před 3 lety +2

      Probably bertram has more investments and savings. But you’re right, putting all your income into one place is also risky.
      Diversifying is the best option right now

    • @johnalmond9426
      @johnalmond9426 Před 3 lety +1

      If you invest aggressively over the long run he will get better returns. You will be able to generate a consistent passive income.

    • @dylancredence3870
      @dylancredence3870 Před 3 lety +2

      in the meantime this is presenting an insane opportunity for new investors or those sitting with cash waiting. To set themselves up in a good spot. Even investing in TSLA, bitcoins the hottest crypto volatility at the moment.

  • @liamjohn2756
    @liamjohn2756 Před 3 lety +39

    Trading option like all other trades can be very risky without experience or a guide. All I can say is expertise is a solid factor for exploiting the full potential of the market, all one need is finding someone who sees the entire structure of the market

    • @janetanderson8689
      @janetanderson8689 Před 3 lety +2

      This is something a whole lot of investors miss mostly around their tryouts. Expertise contributes to an easy flow of both information and skill simultaneousl

    • @ethansmith2499
      @ethansmith2499 Před 3 lety

      Absolutely. With the right strategy and a well articulated market expert who understands the basic concepts to make positive choices you definitely will make great success

    • @jackwyatt9649
      @jackwyatt9649 Před 3 lety +1

      dividends can be a wonderful tool to build your passive income and wealth. Sometimes people invest irrationally based on psychological biases rather than market fundamentals.

    • @liamjohn2756
      @liamjohn2756 Před 3 lety +3

      I have acquired large amount of high-quality dividend-paying stocks that gives me a solid base of passive income, which has been reinvested to increase my total dividend earnings. Benefiting from such self sustaining investment with tremendous capital appreciation is just a perfect solution.

    • @sanjayprashad4695
      @sanjayprashad4695 Před 3 lety

      @@liamjohn2756 Way to go buddy, I have always been interested in stock investing but never had the right way to go about it despite watching CZcams videos. Don’t mean to press but how did you do it?

  • @markcyrus7898
    @markcyrus7898 Před 4 lety +62

    A really good video, it's important as traders we have the basic knowledge of the options market before engaging as it's vital to our trade success.

    • @jacobaltman9923
      @jacobaltman9923 Před 4 lety +2

      True, trading options is way confusing for new traders.

    • @anthonyfoster3799
      @anthonyfoster3799 Před 4 lety +2

      Without a firm knowledge or experience on how trading options works you could start up with losses which might cause you your start up capital.

    • @mikenorman5172
      @mikenorman5172 Před 4 lety +2

      There are some skill which are required to become a successful options trader like risk management, discipline, experience etc and you have to be good with numbers.

    • @marcelreyes1153
      @marcelreyes1153 Před 4 lety

      True guys am thinking of starting out soon but still learning the basics, it's so complicated options trading.

    • @shirleybraxten8169
      @shirleybraxten8169 Před 4 lety

      I have been trying to figure it out on my own but no much luck, you seem to have more experience can you help me Mike.

  • @Andolem
    @Andolem Před 6 lety +169

    the more I learned the more I get confused about options.

    • @A-gs5yg
      @A-gs5yg Před 3 lety

      what happened now😂😂😂

    • @UltimateEntity
      @UltimateEntity Před 2 lety

      Then you shouldn't learn it

    • @avinashvarghese1027
      @avinashvarghese1027 Před 2 lety +2

      @@UltimateEntity you would make a great teacher

    • @UltimateEntity
      @UltimateEntity Před 2 lety

      @@avinashvarghese1027 i'd rather be a student than a teacher, but the previous reply is just made of common sense

  • @OttawaRocks
    @OttawaRocks Před rokem +1

    Just wanted to mention this is the best video I have seen explaining options. It gives the clearest and simplest explanation of what an option is. Many thanks!

  • @BryanCarretoCPA
    @BryanCarretoCPA Před 2 lety +2

    I'm a CPA and you explained this perfectly!

  • @lakitu21
    @lakitu21 Před 5 lety +28

    4:59 Margaret glitches and dies

  • @TheCornbeefsoup
    @TheCornbeefsoup Před 7 lety +9

    I was researching this as I studied stocks. Interesting to see other applications of this method.

  • @AstorSkywalker
    @AstorSkywalker Před rokem +1

    This is the easiest lesson I've found on stock options

  • @Codemeister1998
    @Codemeister1998 Před 4 lety +5

    This is the most helpful video I've found on the subject. Thank you

  • @michellelabuschagne9722
    @michellelabuschagne9722 Před 2 lety +1

    Legend, thanks for explaining better than the lecturer

  • @davidrich165
    @davidrich165 Před 6 lety +1

    Brilliant .. with these basic animated videos im beginning to save boring hours of reading and trying to understand very complicated subjects and so understanding in shorter time

  • @isku-dubba-ridnaan384
    @isku-dubba-ridnaan384 Před 5 lety +2

    easy and plain english explanation. thanks, my first try to understand Options and i did.

  • @alokranjan6616
    @alokranjan6616 Před 6 lety +39

    Looks like Jeff has a strong case to be friends with benefits with Margaret

  • @TarangaDatta
    @TarangaDatta Před 5 lety +17

    Jeff won at life.

  • @brianmoran1196
    @brianmoran1196 Před 5 lety +13

    knew there was something fishy going on between Margaret and Jeff.

  • @alexandersandino1988
    @alexandersandino1988 Před 3 lety +2

    So those $300 the 2% down are added to the $15,000 meaning 15.3k ? Or does he simply just have to pay the remaining $14,700

    • @clooso
      @clooso Před 3 lety +1

      I believe its additional. The 15,000 sale agreement, then the cost of the actual option is 300 (the cost for having the asset taken off the market and reserved for you). Making the total 15,300

  • @anywho942
    @anywho942 Před 7 měsíci

    Jeff is the hero of the story.

  • @hesham0000100
    @hesham0000100 Před 4 lety

    This is actually way easier to understand than other videos

  • @PeeteHouse
    @PeeteHouse Před rokem

    You should attempt to do videos with Kaplan. I’m currently going through licensing for SIE and your video helped me understand this over the material offered through the course. Try to get a partnership

  • @TRENDVFY
    @TRENDVFY Před 4 lety +5

    Legend says that Margaret & Jeff still did not understand what Options are.

  • @kajalavanthika6038
    @kajalavanthika6038 Před měsícem

    Best explanation of Options

  • @pearlescent1557
    @pearlescent1557 Před 4 lety +7

    Long story short, the reason why we can make money off of selling/buying options is because people are willing to pay just for the OPTION, or opportunity, to carry out a transaction regardless of whether they end up completing it or not without risking losing a valuable business deal or accidentally letting go of something really profitable.
    (summary for myself)

    • @ySheng-xr6lu
      @ySheng-xr6lu Před 2 lety +1

      So it's just like paying booking fees? If u don't buy/use it at the end you still need to pay the fees?

    • @nztrp3082
      @nztrp3082 Před 2 lety

      @@ySheng-xr6lu yes I believe so, the premium or ‘booking fee’ as you are describing it, is paid upfront . It’s just the price of obtaining the option contract itself

  • @PrayersHour
    @PrayersHour Před 5 lety +3

    Thank you for posting this. Finally i understood it crystal clear

  • @haroldjones3670
    @haroldjones3670 Před 2 lety +4

    The Crypto market is home to endless opportunities, but if you are not focused you will get sucked in crowd. After reading this, you should know the next step to take in the market and I pray you will be successful for good.

    • @haroldjones3670
      @haroldjones3670 Před 2 lety

      Here are the main options to consider.
      (Crypto or Stocks) (Trade or Invest) (Sell or Hold) (Price History) (Developer Activity) and (Community Activity)

    • @haroldjones3670
      @haroldjones3670 Před 2 lety

      Starting early is the best way of getting ahead to build wealth, investing remains a priority. The stock market has plenty of opportunities to earn a decent payouts, with the right skills and proper understanding of how the market works.

    • @leonardojackson819
      @leonardojackson819 Před 2 lety

      You are right..

    • @johnhooper2498
      @johnhooper2498 Před 2 lety

      But I don't know why people remain poor, I guess is ignorance.

    • @crystalgarza1875
      @crystalgarza1875 Před 2 lety

      It’s not ignorance but unprofessional broker in the market and also a lot of people don't want to loose their money..

  • @shinichikudo9638
    @shinichikudo9638 Před 4 lety +1

    I didn't get that put option example but rest of that is so clear thank u🤗🤗

    • @confidential303
      @confidential303 Před 4 lety

      if you buy een call option with a strike price of 20 .. if the share price moves to 25 .. you make 5 dollar. if the share price will be less then 20 dollar you get nothing . put option is betting the other way .. if the share price drops to 18 dollars .. that means your profit will be 2 dollars.

  • @un_cog9677
    @un_cog9677 Před 7 lety +7

    Oh wow, options are really cool. The dancing lol.

  • @ericaroundtheworld
    @ericaroundtheworld Před 2 lety

    Hi , I have a question. When the unusual option is alerted. It is the whales BUYING? Or they are WRITING (write = selling?)
    So when they Have call sweep. How do I interpret of what they do? ( Reading their option sweep)
    For example :
    AAPL all the option sweep is with bearish sentiment . It expires on 21 Jan 2022 (14 days) . *7 Jan closing price is 172.17
    Parties traded 426 contracts at 165 strike price. This particular call needs to take 15 trades to filled. Total cost by writing party or parties is 98.4k (writing party is who? The whales??) With the price of 231 a contract .
    There were 6631 open contracts prior to today. 10349 Were bought and sold .
    In this statement. What is the role of the whale? Are they the buyer or seller of this call option ?
    Who writes these contracts? The whales? Or others.
    If they are the writers, that means they are selling these call option right ? And for them to WIN/earn the money. The stock price of AAPL needs to be ABOVE the strike price right ? So these option will be worthless .or I am understanding wrong ?

  • @rizuanulkabir3346
    @rizuanulkabir3346 Před 2 lety +1

    very very very easily well explain. thanks for the video . really appriciated.

  • @rohitchaudhari1675
    @rohitchaudhari1675 Před 4 lety

    so to someone force wait is call option. and a deal to make someone force buy is put ok

  • @berry104
    @berry104 Před 6 lety +3

    Yo when he said "that worthless generating business" XD 5:05

  • @Brad-qw1te
    @Brad-qw1te Před 5 lety

    Okay so basically its like a purchase that has to be made if the person wants its to? Like they have the ability to do it at any time and the other person cant refuse

  • @galadriel-ai
    @galadriel-ai Před 7 lety +10

    Very well explained. Thanks!

    • @bibousisi5437
      @bibousisi5437 Před 6 lety

      Just wonderful, been searching for "option trading simulator" for a while now, and I think this has helped. Ever heard of - Jenameron Penny Smackdown - (do a google search ) ? Ive heard some decent things about it and my friend got amazing results with it.

    • @adnan75300
      @adnan75300 Před 5 lety

      Indeed.

  • @kguymyguyfrydie9710
    @kguymyguyfrydie9710 Před 4 lety +1

    Sarah bustin out those moves 2:58 😂😂😂😂😂

  • @abianapatton-toure8545

    "now Margaret an take her dream vacation and sip margaritas with Jeff" lmaao
    at first, I was turned off by this video. but i ended up loving it. thank you.

  • @em4lv11
    @em4lv11 Před 3 lety

    The best video for new comers. Thank you.

  • @khadijaanam62
    @khadijaanam62 Před rokem

    Amazing Explaination! Very very good!

  • @cristianpiano2170
    @cristianpiano2170 Před 4 lety

    This is a great way of explaining options

  • @AbduCola
    @AbduCola Před 2 lety

    Where can I find the English version?

  • @Mewier
    @Mewier Před 5 lety

    In the coffee shop example, Margaret has to pay the buyer a fee for her right to sell later on, right?
    Or do only call options have a fee?

  • @Mehrdad100
    @Mehrdad100 Před rokem

    thank you alot, excellent explanation, this should be a model for explaining a subject for absolut beginner. 👏👏👏

  • @lavelldishmon
    @lavelldishmon Před 4 lety

    So after watching the video many times... its clear... Sarah is invited to any and all of my house parties with those dance moves 😅

  • @faraaah
    @faraaah Před 3 lety

    The explanation was good but if you will remove the music it will be the best.

  • @notabibliophile1518
    @notabibliophile1518 Před 6 měsíci

    Very helpful! Lots of love and respect

  • @Seasonednuts
    @Seasonednuts Před 4 lety

    Wonder if that 50000 is included in the 3000000 sale or on top of it as a holding fee.

  • @alparslankorkmaz2964
    @alparslankorkmaz2964 Před 3 lety +1

    Nicely explained.

  • @beachboardfan9544
    @beachboardfan9544 Před 3 lety

    What value does this stuff create?

  • @frankfuentes7209
    @frankfuentes7209 Před 3 lety

    I definitely get the analogy. This was so helpful and cute.

  • @GabiN64
    @GabiN64 Před 2 lety +1

    Very helpful

  • @anantchopra1663
    @anantchopra1663 Před 4 lety

    Great video! Very simple, to the point and easy to understand!

  • @kkisha6884
    @kkisha6884 Před 11 měsíci

    thank you for this amazing video!

  • @thriftynick27
    @thriftynick27 Před 2 lety

    Why would anyone ever agree to that type of deal with the put option example? I'd like to buy half of the company and you can sell me the rest later for the value of the other half if you choose to within the next five years. Why though? I don't get it.

    • @mister369
      @mister369 Před 2 lety

      I think what the video is missing is that the new business partner in the example is paid an upfront fee to sell the put option. If the business's value increased, then the woman would never exercise the put, but he was still paid the fee

  • @hintotsang204
    @hintotsang204 Před 2 lety

    Thank you! Really good explanation

  • @arnel973
    @arnel973 Před 5 lety +43

    So basically, a "Reservation Fee".

  • @elnasirah
    @elnasirah Před 4 lety

    Thank you for explaining clearly

  • @animationwork4178
    @animationwork4178 Před 6 lety +1

    I thought options can be only applied in stocks

    • @wolfyx6674
      @wolfyx6674 Před 6 lety

      side husler Although I am not an expert, it seems as if options can be used as long as there is a contract allowing it to happen. You would only want to use options to benefit you, and options are really only used when selling or buying an asset (at least that’s what I assume), so whether you are investing (which can take place in many form other than the stock market, etc. bonds) or selling, an option should only be used to benefit you, and usually, the one benefiting from it is usually the one to bring up the option of having an option (NICE PUN)! Anyways, hopefully I didn’t make it much more confusing.

  • @myfinancialtips9191
    @myfinancialtips9191 Před 4 lety

    This was very well explained.
    Thank you from myfinancialtips

  • @evyatarsaar979
    @evyatarsaar979 Před 3 lety

    Great explanation, thanks!

  • @garyroberts3014
    @garyroberts3014 Před 3 lety

    options look cool - thanks for the explanation. But I can't dance, is that okay?

  • @brighttchoka8109
    @brighttchoka8109 Před 11 měsíci

    Good Job well. Explained

  • @leomathlein3658
    @leomathlein3658 Před 3 lety

    So an option is really just a reservation for a stock that you pay a reduced price for, in case you think that the stock you’re buying might crash

  • @teresatang9384
    @teresatang9384 Před 2 lety

    Omg this is so helpful!!

  • @Camposm99
    @Camposm99 Před 4 lety

    Thank Youuu!!! Love the examples

  • @jp8260
    @jp8260 Před 3 lety

    really good! Thank you

  • @benfitness5730
    @benfitness5730 Před 5 lety

    What’s the music called?

  • @mathiasagbo8117
    @mathiasagbo8117 Před 2 lety +1

    Helpful

  • @williekhoo7069
    @williekhoo7069 Před 3 lety

    if magerat dont want to sell her 50% businese. how was it be? or magarate must sell it no mattter how

  • @whoatemydamnkitkat5490
    @whoatemydamnkitkat5490 Před 6 lety +1

    Very well done and very informative. Thank you for the explanation!

  • @Uax101
    @Uax101 Před 3 lety

    Why did I think options were confusing. This is actually really simple.

  • @EMADESSAD
    @EMADESSAD Před 4 lety +1

    How does this apply to stocks

  • @ySheng-xr6lu
    @ySheng-xr6lu Před 2 lety

    Is option free of charge? Do you need to pay to make an option?
    The video does not say anything about what if the one comes up with option did not buy at the end. What a great loss of time to the seller

  • @ExGirlfriendSystem
    @ExGirlfriendSystem Před 7 lety +1

    Great video!

  • @sandeeppadwal1827
    @sandeeppadwal1827 Před 2 lety

    Can you make a video in hindi or Marathi

  • @sahar1usa
    @sahar1usa Před 4 lety

    interesting video thank you
    But i still dont understand options
    But quite good at shorts !

  • @CiekursFishing
    @CiekursFishing Před 5 lety

    very good explaining video! Thanks! )))

  • @onyx_vii7808
    @onyx_vii7808 Před 2 lety +2

    I know where Jeff is gonna "Put" his "Option"

  • @fungtong3697
    @fungtong3697 Před 6 lety

    It is useful! Thanks for the video!

  • @SiebeAlbers-iz4rz
    @SiebeAlbers-iz4rz Před rokem

    5:17 put-options

  • @VjRocker007
    @VjRocker007 Před 3 lety

    Looks like Jeff was the real winner here

  • @eliyahomar
    @eliyahomar Před 4 lety

    Thank you

  • @lamiaehamdaoui1963
    @lamiaehamdaoui1963 Před 4 lety

    Thank you so much

  • @davecirlclux
    @davecirlclux Před 4 lety

    I think the maker of this video is the real Jeff.

  • @general_electrics
    @general_electrics Před 3 lety

    3:28 - notice that all her friends are of one "variety." It's funny, but speaks volumes.

  • @marco3329
    @marco3329 Před rokem

    Very usefull

  • @navyakaleri364
    @navyakaleri364 Před 2 měsíci

    Who is Jeff?

  • @TheCraiker
    @TheCraiker Před 7 lety +1

    perfect, thx

  • @MikeThePike316
    @MikeThePike316 Před 3 lety

    Would've been better to use examples involving securities instead of cars and real estate.

  • @heksogen4788
    @heksogen4788 Před 3 lety

    Seems like the put options has much higher risks, if the buyer had gone bankrupt.

  • @soiamjen
    @soiamjen Před 5 lety +5

    interesting story about jeff & margaret

  • @dancormom
    @dancormom Před 4 lety

    Wait who got Margaritas?

  • @str8liner594
    @str8liner594 Před 4 lety

    Boom! Tetris for Jeff

  • @balaclavallama
    @balaclavallama Před 2 lety

    I'm just here to figure out how retarted I am yoloing my student loan on option calls.

  • @buisyman
    @buisyman Před 4 lety

    Very siimplistic, but it doesn't explain how to make money trading options.

  • @GarcDi3
    @GarcDi3 Před 4 lety

    lol this is so confusing, but entertaining kinda.

  • @EMADESSAD
    @EMADESSAD Před 4 lety +1

    That was so confusing