Comments by "" (@money2024) on "Trading Options For Beginners (Don't Mess Up Like Me) - Robinhood Options Trading" video.

  1. I have yet to be burned by SPY. Only profit so far, but I've only been trading it for a little while. Mostly credit spreads too
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  2. You're spending $1459 for that contract. Because yeah, everything in options is x100
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  3. If you don't have the funds in your account to buy 100 shares, Robinhood will sell the contract for you before it expires
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  4. Noo. Personally, I'm staying away from NIO. I already lost on them and it doesn't seem like they are going up much
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  5. Totally agree
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  6. ^
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  7. I hear that. Not a good thing when you don't know what you're doing
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  8. I'm with you there
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  9. Very true. Totally agree with you
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  10. I think it's likely the same as day trading, because it's not long term capital gains, which is taxed less.
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  11. I remember my first option trade. I bought a CCL call with $5, then 30 minutes later, sold it for $10. Total luck and it was only $5, but it got me hooked.
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  12. You can always close a contract at anytime. You just do the opposite of what you did to open it. So if you bought a call at say a strike price of $250 and the premium was $7.50, then the stock price went up $10 (now it's $260), you could sell that premium maybe for $18 now because it's be deeper in the money and you'd net the difference. So you'd keep $11.50 of premium, which is $1150. And that's generally what you'd want to do. You don't normally want to hold a call or put to expiration unless you want to buy those shares, or sell them in the case of a put
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  13.  @tdotgang538  That's why you just do the wheel method on a proven company that's generally on an upward trend. Almost can't lose then (other than being assigned shares)
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  14. Yes, that's correct. You always keep the premium for the contract, no matter what happens
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  15.  @willcarroll9762  I think you're referring to something else. I was explaining when you're selling a call or put. If you sell a premium (call or put) you get credited a certain amount of money, and you keep it no matter what happens. Like if you sold a put, you'd keep the premium, but if the price dropped below your strike price, you'd have to buy 100 shares at your strike. And vice versa for calls. If the price went above your strike, you'd have to sell your 100 shares at that strike
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  16. It's gambling if you don't do your research. But you could say that same thing about buying stocks. They could just tank (although most probably won't)
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  17.  @tae8898  Credit and Debit spreads are definitely something you should learn. I'm going to be making a video on it soon if you're interested. But they basically allow you to risk less money. You don't have as much potential profit, but it's a good thing for beginners, because you know how much you can make and how much you can lose going into each trade. Definitely something to learn. 👍
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  18.  @calvinloomis2583  Very true 👍
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  19.  @CountChokcula  I agree, it's definitely a great strategy. But have you ever traded the wheel method? For me, it's a great way to earn some consistent profit, without risking too much (other than being assigned shares, which I look forward to sometimes)
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