Speaker 1: An illegal alien from Guatemala charged with raping a child
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Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
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Speaker 3: What's going on?
Speaker 4: What up?
Speaker 3: Y'all?
Speaker 5: We go'st the team Man.
Speaker 3: Years not over yet, There's still work to be done.
Speaker 2: Still, recording is not in progress for those not in
Speaker 2: the know, what's going on too?
Speaker 5: What's up, earners, what's up? Let's gather around.
Speaker 3: Still a lot of work to be done.
Speaker 2: Let's have a sit down.
Speaker 3: What's going on, y'all.
Speaker 6: Hope everybody is doing well, getting ready to finish out
Speaker 6: the years strong and getting ready for Make It Strong
Speaker 6: twenty twenty two.
Speaker 3: Very very important.
Speaker 6: I hope you got a chance to check out all
Speaker 6: the content that we've been putting out this week. We
Speaker 6: had NonStop content and we're finishing up tomorrow. Actually with
Speaker 6: our boy T, I shot the tip.
Speaker 3: He lugged me in the Wi Fi to the yeah.
Speaker 6: So but yeah, today is something that you know, if
Speaker 6: we definitely definitely extremely extremely excited about something.
Speaker 3: That said hi demand So you know, it's a it's
Speaker 3: one to be.
Speaker 6: It's gonna be one of those things that I'm sure
Speaker 6: a lot of people will enjoy a lot of information
Speaker 6: and a topic that is extremely relevant. So, yeah, we
Speaker 6: ain't even gonna play around with this. It's Lawrence, Lawrence here, Lawrence.
Speaker 2: What's up?
Speaker 3: He's Lawrence? What's going on? Brother?
Speaker 7: Hey, what's going on?
Speaker 4: Guys?
Speaker 2: How y'all doing my dog?
Speaker 4: Everything?
Speaker 3: Good? Man? Are you man?
Speaker 7: I'm good? What's going on YouTube? We're up what's going.
Speaker 4: On you yo?
Speaker 2: For those not in the know, we're talking to the
Speaker 2: young legend. The young legend you are, Lawrence Man. We
Speaker 2: got some breaking news tonight. We had an amazing call yesterday.
Speaker 2: We're gonna have an amazing night. I hope everybody got
Speaker 2: their drive race board. I hope you got your penny
Speaker 2: in your pad. If you had a chalk board, get
Speaker 2: your chalk ready. We're gonna get into some things today.
Speaker 2: This is for everybody. You know, we get to ask
Speaker 2: that question all the time. Yeah, we invest in long
Speaker 2: term stocks, but word option has been coming up at
Speaker 2: a feverish pace. Like everywhere we go, everybody wants to
Speaker 2: talk options, and a lot of people, you know, depending
Speaker 2: on where they started following our journey, they might have
Speaker 2: missed the beginning pieces of it. And so tonight we
Speaker 2: just wanted to dedicate a moment in time, a moment
Speaker 2: in history, to to touch everybody with the beginning learning
Speaker 2: stages of options and what they are, and debunk some
Speaker 2: myths and hopefully enlighten people with the information that they
Speaker 2: can actually use and execute going forward. So that's what
Speaker 2: we here tonight for.
Speaker 6: Yeah, for sure, So we're not even gonna waste too
Speaker 6: much time. We're gonna jump right into it. But as
Speaker 6: Troy said, what this is the last Wednesday of every month,
Speaker 6: we do what we call open Enrollment, which is an
Speaker 6: EYL University class, but it's done on YouTube, so everybody
Speaker 6: can and you know, enjoy and participate in it, and
Speaker 6: it's a way it's like a window into what we
Speaker 6: have gone for EYL University. So this this one, we
Speaker 6: did it a week earlier than we usually do it
Speaker 6: because obviously next week is the last week of the year,
Speaker 6: so we're going to take next week off. But this
Speaker 6: is something that you know, we have never really had, like,
Speaker 6: you know, a whole class or a whole topic on
Speaker 6: YouTube devoted to stock options. And as I posted on
Speaker 6: Instagram today, stock options is a record breaking year, up
Speaker 6: thirty five percent as far as trades from last year,
Speaker 6: but still a lot of people still.
Speaker 3: Are losing money.
Speaker 6: So everybody's handing about options, and not a lot of
Speaker 6: people are really fully educated on options. So what we're
Speaker 6: gonna do today is kind of walk you through from
Speaker 6: a basic level of like what a stock option is,
Speaker 6: and how to invest in stock options, how to trade
Speaker 6: stock options and then I guess it can go all
Speaker 6: the way up to advance because and we're gonna talk
Speaker 6: about we're going to answer questions as well live from
Speaker 6: Eyo University. So yes, we have our professor for Eyo
Speaker 6: University who has been gracious with his time and we
Speaker 6: thank him for that. Lawrence, if you tuned into the
Speaker 6: last one that he did on YouTube, which is on
Speaker 6: cryptocurrency of you, yeah that was crazy. That went crazy.
Speaker 6: So if you tuned in for that, you know you're
Speaker 6: in for a treat tonight. And so yeah, we're gonna
Speaker 6: jump right into it. But before we start, just wanting
Speaker 6: to just let everybody know once again, this is a
Speaker 6: part of eyl University and for part of Eyo University.
Speaker 6: You know, we have sixteen infinity groups. So we have
Speaker 6: a Crypto club, we have real estate Club, we have
Speaker 6: an investment club, we have you know, a military club.
Speaker 6: We have all kinds of different infinity groups that's led
Speaker 6: by the students. We actually have break bread sessions with
Speaker 6: MG the mortgage guy, which he talks about real estate
Speaker 6: twice a month. I do financial planning calls. We have
Speaker 6: a movie.
Speaker 3: Club and a book club led by Troy. We have
Speaker 3: a Facebook group.
Speaker 6: We have weekly classes and those classes are archives, so
Speaker 6: there's over two hundred past classes. It's like in encyclopedia.
Speaker 6: So the best way to really describe it is like
Speaker 6: earn you a lesion on steroids. And it's for people
Speaker 6: that really want like a hands on you know, experience
Speaker 6: and a hands on you know approach and be part
Speaker 6: of a community. And it's growing at a rapid page.
Speaker 6: Twelve thousand people in it right now. We got a
Speaker 6: lot of stuff playing for twenty twenty two. We'll talk
Speaker 6: about that later on breaking news. Yeah, physical events and
Speaker 6: and a lot a lot of stuff. So if you're interested,
Speaker 6: this is the last, like I said, class that will
Speaker 6: do for the years. So we're doing the end of
Speaker 6: the year sale sixty five percent off of the annual membership.
Speaker 6: It's gonna be for twenty four hours. So if you're interested,
Speaker 6: I'll put the link in the in the YouTube and
Speaker 6: then we'll also put it in a description.
Speaker 3: Like I said, we'll talk about that later on.
Speaker 6: But yeah, without further ado, I want to, you know,
Speaker 6: get this show on the road. So it's gonna be
Speaker 6: Troy and Lawrence both gonna be talking. I'm gonna be
Speaker 6: kind of just moderating the situation. But I know, you
Speaker 6: guys put together a presentation, so I'm not sure who
Speaker 6: wants to start.
Speaker 2: Yeah, I'm gonna kick it off.
Speaker 4: Man.
Speaker 2: You know it's home turf, so I gotta kick it off.
Speaker 2: So yeah, man, we're gonna get it right to it.
Speaker 2: And I know people love love presentation, so we decided
Speaker 2: to put a presentation together to make it easy for
Speaker 2: everybody to see. I know people are writing notes. Don't worry.
Speaker 2: I'm gonna leave the slides up there so you can
Speaker 2: actually see it. Just put it yes in chat. Just
Speaker 2: put it yes in chat if y'all can see the screen,
Speaker 2: so we know what's going on, all right, perfect, perfect,
Speaker 2: perfect perfect. You see that shield. You know it's about
Speaker 2: to happen. You know, perfect, perfect perfect?
Speaker 4: You know that shill?
Speaker 2: All right, So let's get into it. Let's get into it,
Speaker 2: all right. So here's the question. I need everybody to
Speaker 2: honestly answer this question right now. So do you think
Speaker 2: Apple's price The stock price, which is currently trading at
Speaker 2: one hundred and seventy five thousand, eighty six cents, can
Speaker 2: trade at two hundred dollars by January nineteen twenty twenty four.
Speaker 2: Put your answers in chat, right.
Speaker 7: Now, got a lot of yeses.
Speaker 2: I'll see for sure. Hell yeah, right. So, based on
Speaker 2: what you know about Apple and based only know about
Speaker 2: the economy, you said yes, like most people have said yes,
Speaker 2: of course. Right, is this even a question?
Speaker 3: Right?
Speaker 2: So basically, what you've done is you've predicted the potential
Speaker 2: price of a stock in the future.
Speaker 5: And that, in a simple sense, is what an option is.
Speaker 2: Right. You just did it for the growth, and we're
Speaker 2: going to talk about what it is when it grows
Speaker 2: and when it depreciates when it falls. It's two types.
Speaker 2: So everybody got the question, right, and so let's keep
Speaker 2: moving right. So, like I said, essentially the future price
Speaker 2: prediction of a given asset is what you just did, right.
Speaker 2: Here's the example. The asset was Apple. That was a
Speaker 2: stock you chose. I gave you the price what it
Speaker 2: is now as of today. It might have went down
Speaker 2: a few cents after hours. The future price prediction was
Speaker 2: two hundred dollars and that's the strike price. And we'll
Speaker 2: show you how we came up with that and the
Speaker 2: future date. Right. So January nineteen, twenty twenty, for a
Speaker 2: little over two years away. That's the expiration date. And
Speaker 2: so when I say expiration date is because you're giving
Speaker 2: yourself a specific time.
Speaker 5: To have this number be hit.
Speaker 2: Now granted it doesn't have to even hit two hundred,
Speaker 2: and we'll talk about why, because there's money that can
Speaker 2: be made either way if it makes it to it
Speaker 2: or if it doesn't. All right, So I need everybody
Speaker 2: just to understand that piece, all right, go ahead?
Speaker 7: Yeah, So what are option contracts? Option contracts offers the
Speaker 7: buyer the opportunity to buy or sell depending on the
Speaker 7: type of contract that they hold. So the chosen asset
Speaker 7: is at a price set out in the contract at
Speaker 7: expiration date. So this is key. Options differ from shares.
Speaker 7: So a lot of people a lot of times get
Speaker 7: confused and saying, you know, am I making a call
Speaker 7: or a put? Or am I buying or selling shares?
Speaker 7: So when you're holding options, every option that you hold
Speaker 7: is worth one hundred shares, So you can be a
Speaker 7: buyer of options, and you can also be a seller
Speaker 7: of options if you have more than one hundred shares.
Speaker 7: So for every buyer, there is a seller. So each
Speaker 7: contract is worth one hundred shares, which is why you
Speaker 7: always see contracts expressed. Sometimes you see twenty five dollars
Speaker 7: and twenty six cents. That's really two five hundred and
Speaker 7: twenty six dollars per that option contract. So always remember
Speaker 7: that option contracts are broken up and always worth. Every
Speaker 7: option contract is worth one hundred shares and you have
Speaker 7: the right to purchase those hundred shares at that expiration
Speaker 7: date as long as the contract is potentially fulfilled. And
Speaker 7: so in order for that contracy fufilled, the stock actually
Speaker 7: has to go above the strike price, which we'll talk about.
Speaker 2: Yeah, and I want people to be very clear about that,
Speaker 2: and I put it in bold letters for a reason.
Speaker 2: Their contracts are not shares. And so when people buy
Speaker 2: a share of a company, or we'd like to say
Speaker 2: when we're teaching kids a slice of a company, right,
Speaker 2: you're going to pay the equities price at that time.
Speaker 2: So today Apple was one seventy five, two days ago
Speaker 2: was one seventy one. If you wanted to share, that's
Speaker 2: how much you would pay. Options are completely different. They're
Speaker 2: not based on the share, although that does take into
Speaker 2: account how the bid and the asset is perceived, and
Speaker 2: we'll talk about how that works too.
Speaker 7: Yep, yep, so you have right here. A stock option
Speaker 7: contract is the option to buyer sell one hundred shares,
Speaker 7: So one contract equals one hundred shares, So you can
Speaker 7: buy multiple contracts. You could buy two contracts that would
Speaker 7: be two hundred shares, three contracts four hundred, and then
Speaker 7: you take a three contracts three hundred and four contracts
Speaker 7: four hundred. So this is imperative important for us to
Speaker 7: kind of understand a lot of times when people are
Speaker 7: taking a look at option contracts, a lot of times
Speaker 7: they get confused. They're saying, Okay, why am I purchasing
Speaker 7: this one contract? How is it worth one hundred shares?
Speaker 7: So on the sale side, how like where do option
Speaker 7: contracts actually come from? So option contracts actually come from sellers.
Speaker 7: So you have people who may own a thousand shares
Speaker 7: of Apple and they decide to actually sell you the
Speaker 7: actual options. Those options actually cost a what a premium,
Speaker 7: a select premium. So it's imperative to understand that that
Speaker 7: option contracts are always worth one hundred shares. And this
Speaker 7: is how they're actually created by a seller. A seller
Speaker 7: sells you that option, you pay a premium, so you
Speaker 7: pay a price. The seller collects that.
Speaker 5: Premium perfect, all right.
Speaker 2: So there's two types of options, and this is again
Speaker 2: this is the beginners. Obviously there's more advanced and we
Speaker 2: can talk about that maybe a little bit later, because
Speaker 2: I'm sure some people are involved in trading options. But
Speaker 2: it comes down to two for the beginning stage, and
Speaker 2: that's calls inputs. I'm gonna talk about calls really quickly, right,
Speaker 2: So calls that pretty much is that if you think
Speaker 2: the stock price move up, you're going to make a call.
Speaker 2: So a call options are speculating on the price increase
Speaker 2: of an asset. They are the financial contracts that give you,
Speaker 2: the buyer, the right but not the obligation, so you
Speaker 2: don't have to but you can buy an asset at
Speaker 2: a specific price within a specific time, which would be
Speaker 2: that expiration date. So a call buyer profits when the
Speaker 2: underlying asset increases in price.
Speaker 5: So Apple, this is our example. We're gonna use Apple.
Speaker 2: Because it's the greatest company in the world, right Apple,
Speaker 2: if it currently is at one hundred and seventy five
Speaker 2: dollars per share today, if I'm looking at the future
Speaker 2: price of it, and I believe that it's going to
Speaker 2: go up, in majority of you said that Yeah, by
Speaker 2: January twenty twenty four, it can make it to two
Speaker 2: hundred dollars. Then I'm making a call on that because
Speaker 2: I'm saying that the price of Apple will appreciate in
Speaker 2: that given time now as it appreciates from one seventy five.
Speaker 2: If I bought that call today, I'm going to make
Speaker 2: money all the way up until it hits two hundred.
Speaker 2: I'll make even more money if it passes two hundred,
Speaker 2: and so this is key to know the difference between
Speaker 2: the two. Right. So if I'm saying that the price
Speaker 2: are going to go up and I believe in that,
Speaker 2: and again we're investing in solid companies right that have
Speaker 2: appreciation and have growth and strong fundamentals, then I would
Speaker 2: make a call. Now, we got to say this investing
Speaker 2: has considerable risk, and we always stress to people, Please,
Speaker 2: if you don't know how to trade stocks, you probably
Speaker 2: shouldn't start with options, right. You should probably have a
Speaker 2: portfolio that has some stocks in it that some long
Speaker 2: term companies that you can believe in. Obviously Microsoft and
Speaker 2: Apple we talk about a lot in video AMD. All
Speaker 2: these companies that are strong, you should have stock in them.
Speaker 2: And then if you want to invest in options. I
Speaker 2: think it's a great idea as well. So those are calls.
Speaker 2: If you think the price is going to go up,
Speaker 2: you're going to make a call on that option. Yep.
Speaker 7: So then we have on the opposite side, we have
Speaker 7: on the opposite side put so put options. So put
Speaker 7: options actually allow you to make money off of assets
Speaker 7: price going down. So put options can be very lucrative.
Speaker 7: A lot of people always ask what can you use
Speaker 7: put options for? So there's been a myth that's been
Speaker 7: going around for years. On top of years where we
Speaker 7: have I haven't been in this space where we've been
Speaker 7: tricked out of when we think, hey, that the stock
Speaker 7: market you can only make money off the stock market
Speaker 7: going up, but you can actually make money off of
Speaker 7: Apple stock price coming down, the video Tesla, whatever, stock
Speaker 7: Intel here, you can make money off that stock price
Speaker 7: actually declining the increase. So what happens is you pay
Speaker 7: a specific premium and if the stock price goes and falls,
Speaker 7: for example, Intel here, Intel's at fifty points sixty two dollars.
Speaker 7: If Intel then falls five dollars, you can profit off
Speaker 7: of that. So instead of you just holding shares, and
Speaker 7: when you're holding shares, you may lose value of your
Speaker 7: shares when it declines, you can actually profit and make money.
Speaker 7: So I tell people that this is a great strategy
Speaker 7: to use, especially on red days in times of market turmoil.
Speaker 7: So for example, when the coronavirus first hit, people actually
Speaker 7: profited off that market downfall. When we saw the market's
Speaker 7: decline thirty six percent. People just did it in their
Speaker 7: positions and hold shares and just see their value their
Speaker 7: shares decrease. They also use put options to actually hedge
Speaker 7: against their portfolio. So the reason why I really like
Speaker 7: put options is honestly because you can actually make money
Speaker 7: to the downside with a stock going down, and then
Speaker 7: you can go ahead and purchase. So one of the
Speaker 7: things that I really like to say about put options
Speaker 7: is I utilize put options on Square most recently. We've
Speaker 7: all seen that Square is what came down from two
Speaker 7: forty and two point fifty and now it's sitting at
Speaker 7: about one sixty seven at today's close. So using put options,
Speaker 7: I was able to profit of trading this stock to
Speaker 7: the downside. But yes, I like Square long term, So
Speaker 7: guess what, Now I've profited it off of making money
Speaker 7: off that stock going down, and now I had the
Speaker 7: ability to be able to buy shares at a lower price,
Speaker 7: but then I also profited from that. So now I
Speaker 7: actually have money and equity to be able to pour
Speaker 7: in on quality companies that I'm now being able to
Speaker 7: buy cheaper. So put options lose value when the stock
Speaker 7: goes up, So that's key. So unlike call options that
Speaker 7: when the stock goes up, you're making money, put options
Speaker 7: when the stock goes When the stock goes up, you're
Speaker 7: actually losing money on put options.
Speaker 2: All right, So I want to real quick because I
Speaker 2: want people to really catch this right, And so I
Speaker 2: want you to notice something here. When I made my
Speaker 2: call option, Look how far out I went right twenty
Speaker 2: twenty four, which is two years away when I did
Speaker 2: a put option. Right, if you look here in the example,
Speaker 2: we only went to March twenty twenty two, Lauren, tell
Speaker 2: them why the difference in time span when we do
Speaker 2: puts and calls.
Speaker 7: Yeah, So, like a lot of times, if we're taking
Speaker 7: a look at you know, how far the market has
Speaker 7: dropped and went down. We've seen a couple pullbacks here.
Speaker 7: We've seen pullbacks back here in twenty twenty where we
Speaker 7: saw a thirty six percent decline. We saw a bear
Speaker 7: market that came in twenty eighteen. We saw a short
Speaker 7: mini fall in twenty thirteen and twenty fifteen, We saw
Speaker 7: the financial crisis in two thousand and eight. We also
Speaker 7: saw a downturn in the dot com bubble. So these
Speaker 7: downturns have actually been very small. So the timing when
Speaker 7: we take a look at the market of over this
Speaker 7: one hundred year existence of the stock market, ninety four
Speaker 7: years out of the one hundred the stock market has
Speaker 7: actually been going up. So when we take a look,
Speaker 7: the stock market is going up more than it's going down.
Speaker 7: So you don't want to be caught and puts on
Speaker 7: certain companies for long periods of time because you can
Speaker 7: lose a lot of money.
Speaker 2: Perfect, perfect, all right, So expiration dates right, and so
Speaker 2: again when we gave the example, we said January nineteen,
Speaker 2: twenty twenty four. For the Intel example, we said March eighteen,
Speaker 2: twenty twenty two. And I gave those dates because those
Speaker 2: are significant dates. They're called quadruple witching. And we said
Speaker 2: that happens every quarter. So the third month of every quarter,
Speaker 2: the third Friday, quadruple witching will happen, which means that
Speaker 2: we said this on market mondays plenties and times that
Speaker 2: contracts will expire, and so when we talk about those dates,
Speaker 2: those are expiration dates for contracts in March and obviously
Speaker 2: in December. So expiration date is the final date on
Speaker 2: which a contract is valid. So after that time the
Speaker 2: contract has aspired. Option owners can choose a couple of things.
Speaker 2: You can exercise a contract, which means that you were
Speaker 2: going to buy one hundred shares, right, So let's say
Speaker 2: you have five contracts. You have the right, not the obligation,
Speaker 2: to buy five hundred shares, and or you can sell
Speaker 2: the option contract if you haven't made any if you've
Speaker 2: made profit, you can take profit there, or you can
Speaker 2: choose to buy more. So you have three things you
Speaker 2: can do at the expiration date. Here's what we tell people.
Speaker 2: You don't want to wait to the expiration date, right,
Speaker 2: You're not waiting till that date to actually make a
Speaker 2: move because again, when the expiration dates come, a lot
Speaker 2: of people are selling off and taking profits. You want
Speaker 2: to make sure that you can make the most as possible,
Speaker 2: So just keep that in mind. Now, expiration dates can
Speaker 2: range in length of time from days to weeks to
Speaker 2: months to years, and so we showed you the example
Speaker 2: and shot myself. We talk about this all the time.
Speaker 2: We like to go out and leaps, right, So we
Speaker 2: like to have as much time as possible for our
Speaker 2: positions to have the volatile to have their ups and
Speaker 2: their downs for news cycles. And obviously right now we're
Speaker 2: seeing with imicron right now there's pullbacks, right, but we're
Speaker 2: in positions that are for two or three years out.
Speaker 2: It gives us time for correct and also appreciate over time.
Speaker 2: So the longer this is important, the longer the expiration
Speaker 2: is also useful to obso retains time value even if
Speaker 2: the stock trades below the stock price, So it's fine
Speaker 2: if you don't get to your strike price. As long
Speaker 2: as it's trending towards your stock price, you'll be fine.
Speaker 2: So these are just two examples of expiration dates. Like
Speaker 2: next week, December thirty of twenty twenty one could be
Speaker 2: a weekly, right, So if somebody got into an options
Speaker 2: position today, that might be an expiration date that they're
Speaker 2: choosing if they're doing a weekly. Obviously, January nineteen, twenty
Speaker 2: twenty four is years away, so we're talking about a
Speaker 2: little over two years away from now again, giving yourself
Speaker 2: the optimum time, and we're going to talk about delta
Speaker 2: and all that, why that's valuable and data.
Speaker 7: Yeah, and I just wanted to add one thing here.
Speaker 7: Got especially especially when you're just getting into options, guys,
Speaker 7: I always tell people to buy time. If you're someone
Speaker 7: new getting into options first. I always tell people, guys,
Speaker 7: stocks first, investing in ETFs, investing first is key. I
Speaker 7: did not trade options until two years after me learning
Speaker 7: about the stop market and studying. So I really want
Speaker 7: to dry this point home because it's important to understand.
Speaker 7: I find it that a lot of people are hopping
Speaker 7: into trading on their second day in the markets, second
Speaker 7: week in the markets. So I wanted to really tell
Speaker 7: people and stress to people that it's important to take
Speaker 7: your time, take your time to learn the information, take
Speaker 7: your time. It's not a rush. Like I said, I
Speaker 7: started when I was seventeen. I didn't start trading until
Speaker 7: I was nineteen, So I really want to stress that
Speaker 7: point home. And also the short term options for someone
Speaker 7: that does not know technical analysis that is brand new
Speaker 7: is like going to the Russian roulette table in Vegas.
Speaker 7: And I'm going to say that one more time someone
Speaker 7: trading short term options without knowing technicals is like going
Speaker 7: to the Russian roulette table in Vegas, and I'll leave
Speaker 7: that one there.
Speaker 2: Don't do it strictly for liibment, not for freshmen. That's
Speaker 2: not for freshmen. All right, let's keep rolling. Strike price.
Speaker 2: So again, strike price is the number, right, is the
Speaker 2: price at which the asset can be bought or sold.
Speaker 2: It is the price that the given asset will appreciate call.
Speaker 2: Like say, if' buying a call or depreciate, that's a put.
Speaker 2: And so here's our example, right Apple right now, again,
Speaker 2: it's at one hundred and seventy five cents. If I'm
Speaker 2: going to say I want to see it appreciate, I
Speaker 2: come up with a price or a target number that
Speaker 2: i'm saying it's going to reach. And so two hundred
Speaker 2: dollars would be my strike. If I believe that Apple
Speaker 2: will pull back. I'm listening to all the reports, I'm
Speaker 2: following all my technicals and the fundamentals, and I'm saying,
Speaker 2: all right, well, I feel like there's gonna be a
Speaker 2: pullback in Apple, then I'm going to make a put.
Speaker 2: And so one hundred and fifty dollars will be my put.
Speaker 2: And so let's figure this out. This is pretty cool here, right,
Speaker 2: So where we're gonna get our strike price from now?
Speaker 2: Past performance does not always predict future success. But if
Speaker 2: we're looking at Apple over the past twenty years, right,
Speaker 2: I know, like we always talk about, let's look at it,
Speaker 2: it's an exception. But let's look at Apple since its
Speaker 2: past twenty years to your right. If you look at
Speaker 2: the performance and you look at that column that's in parentheses, right,
Speaker 2: that is not a mistake. Apple has increased by fifty
Speaker 2: three thousand percent since two thousand and one, right, And
Speaker 2: so if we're basing our if we're going to make
Speaker 2: a call or that's pretty far out, let's not use
Speaker 2: twenty years. Let's maybe use two years. Right, So past
Speaker 2: since two years is going up one hundred and fifty percent.
Speaker 2: This year, it's up thirty two percent year to date.
Speaker 2: And so even a conservative number, because I know when
Speaker 2: y'all calls me, he's gonna want a conservative number, could
Speaker 2: we say that Apple could appreciate ten percent by twenty
Speaker 2: twenty four each year? Right, So that just means that
Speaker 2: Apple would which is one seventy five now if it
Speaker 2: grows by ten percent it's at one ninety two by
Speaker 2: next December. If it grows by ten percent in twenty
Speaker 2: twenty three, it's at two hundred and eleven dollars, right,
Speaker 2: So that means that it grew at ten percent each year, right,
Speaker 2: And that seems like that's something that's very viable to happen. Right.
Speaker 2: So remember our call was at two hundred and so
Speaker 2: if we just said Apple two hundred call for twenty
Speaker 2: twenty four, based on its past performance and a very
Speaker 2: conservative number of ten percent, the likelihood of it hitting
Speaker 2: two hundred is pretty high, right. So that's kind of
Speaker 2: one of those things when you look at strong companies
Speaker 2: and their past performance. Now you see why you come
Speaker 2: up with these strikes. Yep, yep.
Speaker 7: So when taking a look, when you're taking a look
Speaker 7: at options, you know, purchasing contracts, not shares, it's important
Speaker 7: to understand the difference between the bid and the ask.
Speaker 7: So this is going to be a pivotal part of
Speaker 7: what we talk about here tonight.
Speaker 2: This is the part.
Speaker 7: Yeah, So because this is what gets a lot of
Speaker 7: I already saw in the chat here that someone said
Speaker 7: Robin Hood order fills suck. So we're gonna talk about
Speaker 7: the difference between the bid and the ass. So a
Speaker 7: lot of people when they hop into options trading, they're
Speaker 7: immediately as soon as they go ahead and enter a trade,
Speaker 7: they're gonna give money to the market. And why is
Speaker 7: that because a lot of people are purchasing options at
Speaker 7: the ass price. So the ass price represents the minimum
Speaker 7: price that the seller is willing to take for that
Speaker 7: same security. The bid price represents the maximum price that
Speaker 7: the buyer is willing to pay for a share of
Speaker 7: the stock or another security. You never want to pay
Speaker 7: at the ask. And Troy's gonna show you we have
Speaker 7: an example on the next slides where we're gonna actually
Speaker 7: you're gonna actually get a chance to see. So a
Speaker 7: lot of times you'll see like the bid will say
Speaker 7: seven hundred and the ass will say like nine to twenty.
Speaker 7: So that's called the spread. So when you hear when
Speaker 7: someone asks you, hey, what is spread on that call
Speaker 7: that you're looking at or that put you're looking at,
Speaker 7: the spread is the difference between the bid and the ask.
Speaker 7: So if the bid is seven hundred and then the
Speaker 7: ask is nine to twenty, that's a two hundred and
Speaker 7: twenty dollars difference in spread. So guess what's gonna happen
Speaker 7: to someone that goes ahead and uses what is called
Speaker 7: a market order instead of a limit order. So when
Speaker 7: it comes to options, you want to use limit orders?
Speaker 7: Why do you want to use limit orders? Because you're
Speaker 7: able to go ahead and specify the price that you
Speaker 7: actually want to get into that security hold on.
Speaker 2: You got to tell them that again. You gotta tell
Speaker 2: them that again. The difference between market and limit.
Speaker 7: Yeah, so market is just going to put you in
Speaker 7: at any price. So what's gonna happen If you use
Speaker 7: a market order and there's a two hundred and twenty
Speaker 7: dollars spread, You're going to more than likely be down
Speaker 7: one hundred dollars instantaneously, instantaneously. So who wants to be
Speaker 7: down one hundred dollars instantaneously? I know, I don't, I
Speaker 7: know all you guys don't want to. So make sure
Speaker 7: that you're using a limit order. So what is the
Speaker 7: best way to get filled with options is to use
Speaker 7: a limit order? Especially what happens is when you're actually
Speaker 7: buying out those further out options. The strategies that Troy
Speaker 7: and Rashad talk about when you're talking about twenty twenty
Speaker 7: three and twenty twenty four, the bid and an ass
Speaker 7: is going to be spread wide because there's not a
Speaker 7: lot of volume and open interest on the contract, which
Speaker 7: you will talk about later.
Speaker 2: We're getting there, so yeah, yeah, yeah, And I tell
Speaker 2: people as simple as this, Man, if you've ever bought
Speaker 2: a car and you've walked into the dealership and somebody
Speaker 2: tells you a price, most none times out of ten,
Speaker 2: you're going to say, all right, well, I'm not paying
Speaker 2: that price. This is what I'm paying, right, And so
Speaker 2: it's the same thing when you think about these contracts.
Speaker 2: The as price is the premium. The bid price is
Speaker 2: what you're going to pay. You're willing to pay that, right,
Speaker 2: And if you put it at a limit order, you're saying,
Speaker 2: I'm not going above that. Now, sometimes that limit will
Speaker 2: get filled and sometimes it doesn't. But this is when
Speaker 2: we talk about patients. Right, if it's not filled, that's fine.
Speaker 2: You can leave it out for a day. If it
Speaker 2: doesn't get filled, do it again. Right, You're gonna stick
Speaker 2: to your script. That's your limit, You're not going above that.
Speaker 2: It'd be the same thing like if you're going to
Speaker 2: buy a car, this is how much I can afford
Speaker 2: this is what I'm paying for it.
Speaker 5: I'm not paying anything over it. The problem is that.
Speaker 2: A lot of people who are new to options come
Speaker 2: in and they click market and sometimes it feels at
Speaker 2: the highest price as possible.
Speaker 5: In fact, it could say nine to twenty.
Speaker 2: By the time you buy it, somebody's already purchas sitting
Speaker 2: now it's going up to nine forty, and so you've
Speaker 2: actually paid more than you thought. And so that's why
Speaker 2: it's very, very important. This is like one of those
Speaker 2: keys that people will lose money right away and they
Speaker 2: look at their accountant like, like, how come every time I
Speaker 2: buy my option contract, I'm in the negative. This is
Speaker 2: probably one of the main reasons why that is happening.
Speaker 2: So treat it like the dealership. Look at the bid,
Speaker 2: maybe go ten to fifteen cent or above the bid
Speaker 2: and say that is where I'm staying. I'm not going
Speaker 2: above it. If it feels it feels. If it doesn't,
Speaker 2: it doesn't. Let's get into some things.
Speaker 7: Yeah, so now you have here. This is td ameritrade.
Speaker 7: For those that are new and may have not looked
Speaker 7: at td ameritrade. Td Ameritrade Think or swim is one
Speaker 7: of the most reputable platforms out there for people to trade.
Speaker 7: TD Ameritrade, Think or Swim is set up like this.
Speaker 7: This is actually showing you how to actually go ahead
Speaker 7: and actually execute and buy an actual options contract. So
Speaker 7: here we have up here. Option strategy will start in
Speaker 7: the top left corner single order. The underlying symbol obviously
Speaker 7: is Apple. Also what you want to know is when
Speaker 7: you're actually buying options. This is key action that action
Speaker 7: button right there. Whenever you're purchasing options, calls or puts,
Speaker 7: it always needs to be on buy to open. That's
Speaker 7: whether you're on Charles Schwab, Fidelity, e Trade, whatever platform
Speaker 7: that you're on, it needs to be on buy to
Speaker 7: open when you're purchasing options. Now, when you are saying
Speaker 7: when you are ready to close your position, it needs
Speaker 7: to be on sale to So you need to make
Speaker 7: sure that you have it on buy to open and
Speaker 7: sell to close. If you end up having it in
Speaker 7: something else, you're gonna mess yourself up. So it needs
Speaker 7: to be buy to open when you're purchasing your options,
Speaker 7: and then it needs to be sell to close when
Speaker 7: you're selling your options. Then you have next door what
Speaker 7: you're going ahead and typing in how many contracts. You're
Speaker 7: purchasing either one, two, et cetera. Then you have select
Speaker 7: your expiration. You have an expiration, so you can select
Speaker 7: the date, and we have the dates pulled up over
Speaker 7: here and we'll get to those in a second. Your
Speaker 7: striking your is it a call or a put? And
Speaker 7: we'll get to that. Then. Also, you see limit order,
Speaker 7: so already, yeah, limit order. You don't need you need
Speaker 7: a limit order. And then guess what price you see.
Speaker 7: What happens is when you have a market order, that
Speaker 7: price box right here won't pull up because now all
Speaker 7: you do when you hit market is you just hit
Speaker 7: review order, limit order. Then you put in price. Also,
Speaker 7: time enforce day, so you want to keep it on day.
Speaker 7: If you keep it on day, it'll make sure that
Speaker 7: it enforces during the day. Now, if that price is
Speaker 7: at a limit order and it does not enforce at
Speaker 7: the end of the business day at four pm Eastern
Speaker 7: Standard time, that order will cancel.
Speaker 5: And that's not a bad thing, y'all. That's not a
Speaker 5: bad thing.
Speaker 7: Yep, that's not a bad thing. I'm just letting you
Speaker 7: guys know that if you have an order that's pending
Speaker 7: and it's in time enforced day, and it doesn't execute
Speaker 7: during market hours. Options are only able to be purchased
Speaker 7: because I know we got a lot of new people
Speaker 7: on here and they're probably going to ask the question.
Speaker 7: Options can only be purchased in between nine to thirty
Speaker 7: Eastern Standard to four pm Eastern Standard time. The only
Speaker 7: options that can be traded outside of that time is
Speaker 7: the spy in a QQQ, which can be traded until
Speaker 7: four point fifteen pm Eastern Standard time. So options can
Speaker 7: only be executed from nine to thirty all the way
Speaker 7: to four pm Eastern Standard time. Now, will we take
Speaker 7: a look at the strike panel over here? Turn your direction.
Speaker 7: You see we're on Apple January twenty eight, twenty twenty two,
Speaker 7: which is next month's the last week of next month's
Speaker 7: expiring contracts. We see that at the time when the
Speaker 7: screenshot was taken, Apple was at one seventy one point
Speaker 7: eighty nine. I believe Apple closed at one seventy five
Speaker 7: point seventy six today. So taking a look here, you
Speaker 7: have the strike price. Here in the middle you see
Speaker 7: calls puts, and then you also see bid and ask,
Speaker 7: so on the call side and on the put side,
Speaker 7: and then the strike that's the strike price in the middle.
Speaker 7: Now you see a highlighted blue on the left side
Speaker 7: to the top left, and you see a highlighted blue
Speaker 7: to the bottom right. So I want to talk about
Speaker 7: something shot he said earlier today. If you guys watched
Speaker 7: his real he says something that was really keen, and
Speaker 7: I wanted to make sure that this was something that
Speaker 7: I touched on here tonight. Shot he said in his
Speaker 7: really said, a lot of people who are purchasing out
Speaker 7: the money options are losing money. So I'm going to
Speaker 7: put an end to this tonight. Why do I say this,
Speaker 7: Because what's happening is is that a lot of people
Speaker 7: are purchasing out the money options, and out the money
Speaker 7: options are very, very, very risky, especially in the short term.
Speaker 7: With leap options options that have a lot of time
Speaker 7: like January twenty twenty four, two hundred, you get a
Speaker 7: little leeway. But with the trading aspect, when you're buying
Speaker 7: out the money options, you're actually setting yourself up for failure.
Speaker 7: So why am I saying this? So out the money
Speaker 7: options typically for new options traders is like just beauty.
Speaker 7: It's like heaven. People are like, oh my gosh, it's
Speaker 7: so cheap. You mean I could buy this option for
Speaker 7: you know, four hundred dollars, five hundred dollars, and I
Speaker 7: could profit from it. And what happens is is that
Speaker 7: there's also a factor in average true range, So how
Speaker 7: much does the stock move on a day to day basis?
Speaker 7: So my point here tonight is to really make sure
Speaker 7: that people understand that you want to focus on buying
Speaker 7: in the money versus out the money contracts. So these
Speaker 7: contracts highlighted.
Speaker 5: Up my full, my fault, my fault, yeah, got yep.
Speaker 7: So these contracts highlighted in the blue here on the
Speaker 7: top left here and calls that one seventy strike one
Speaker 7: sixty seven point five, one sixty five, one sixty two
Speaker 7: point five, one sixty What makes them in the money? Calls?
Speaker 7: What like? What makes them in the money? Causes what
Speaker 7: someone's gonna ask, Well, the current stock price at this
Speaker 7: time was one seventy one point eighty nine, So what
Speaker 7: are you actually doing when you actually buy a one
Speaker 7: seventy strike? So when you buy a one seventy strike,
Speaker 7: you're essentially saying, hey, by January twenty eight, twenty twenty two,
Speaker 7: Apple is going to be above one seventy. Well, Apple
Speaker 7: already is so Apple is considered a in this contract
Speaker 7: right here is considered in the money. The one to
Speaker 7: seventy strike is considered in the money, so it has
Speaker 7: what's called intrinsic value. Intrinsic value. Now the one seventy two,
Speaker 7: one seventy five, one seventy seven are considered out the money.
Speaker 7: Apple's not hired than one seventy two point five. No,
Speaker 7: it's higher than one seventy five, and it's not higher
Speaker 7: than one seventy seven point five. So what happens is
Speaker 7: is that people who are buying in the money options,
Speaker 7: you set yourself up better. Why because you're putting some
Speaker 7: people may say, well, I'm paying more. Yes, it's better
Speaker 7: to pay more for in the money option a lot
Speaker 7: of times than buying out the money options. Why because
Speaker 7: on January twenty eight, twenty twenty two, a lot of
Speaker 7: those out the money options will be expiring worthless. And
Speaker 7: so most options expire worthflex, especially out the money options.
Speaker 7: And so it's imperative that we understand that it is
Speaker 7: okay to spend more on buying in the money option
Speaker 7: contracts because it's going to give you a higher probability
Speaker 7: of actually profiting. And also guys, the first thing that
Speaker 7: we want to think about when we're focused on trading
Speaker 7: options is actually not making money. How do we protect
Speaker 7: ourselves on the downside. What happens is that if someone
Speaker 7: was to buy that one eighty strike right here and Apple,
Speaker 7: and it costs about four hundred and twenty five dollars,
Speaker 7: and Apple was to decline five dollars, that option contract
Speaker 7: would actually lose a lot more value than someone who
Speaker 7: has that one sixty five striker, that one sixty two
Speaker 7: point five strike. So why am I saying this? Because
Speaker 7: when you're having your options in the money, you have
Speaker 7: what's called intrinsic value. Options that have intrinsic value. What
Speaker 7: they actually have higher deltas. So delta is the amount
Speaker 7: per dollar that you make as the stock price increases,
Speaker 7: and out the money options have higher data. So what
Speaker 7: is data? Theta is the time decay, So out the
Speaker 7: money options have a higher time decay. So for anyone
Speaker 7: that's been trading options before, and it's like, Okay, I
Speaker 7: went and got a one eighty strike on Apple and
Speaker 7: Apple went up to one seventy two, but I didn't
Speaker 7: make any money, why is that happening? Because what's happening
Speaker 7: is is that the delta is out to see me.
Speaker 7: The data is outweighing the delta, so you're not making
Speaker 7: as much money when you have those out the money options.
Speaker 7: The only way for you to make a lot of
Speaker 7: money without the money options is when the stock has
Speaker 7: a drastic move upward. For example today with Tesla, Tesla
Speaker 7: went up seventy points today. So the people who had
Speaker 7: one thousand dollars calls for Tesla yesterday when Tesla was
Speaker 7: at nine point thirty, they were extremely risky with that.
Speaker 7: But because Tesla actually went up and increased that much,
Speaker 7: people actually made a lot of money off of that.
Speaker 7: So what happens people are ready to go ahead and
Speaker 7: grab these out the money options because they're cheaper. What
Speaker 7: happens with a stock like Apple, which doesn't really move
Speaker 7: very fast, but it is a consistent stock. As we
Speaker 7: pulled up on the sheet, Apple is a consistent stock.
Speaker 7: So what happens is that when these stocks don't move
Speaker 7: as fast, a lot of people get hurt because they're
Speaker 7: in out the money options and the time decay is
Speaker 7: way too much.
Speaker 2: We call that losing your shirt. Yeah, don't lose your
Speaker 2: shirt yep.
Speaker 7: So you want to focus on really buying those in
Speaker 7: the money options, especially if you're doing any short term trading.
Speaker 7: If you're doing a more of a leap strategy, you
Speaker 7: still want to stick to buying in the money options,
Speaker 7: but you can actually go a little bit farther out.
Speaker 7: It is okay, but you do want to be protecting
Speaker 7: yourself because a lot of times the out the money
Speaker 7: strategy it's one of those sexy things that a lot
Speaker 7: of people want to push on people. But we don't
Speaker 7: want to do that here. We're not pushing sexiness out here.
Speaker 7: We're pushing consistency. So it's important to be consistent versus
Speaker 7: trying to be sexy and be cheap. Because the first
Speaker 7: thing that we had a mindset of coming in is
Speaker 7: how can I get the pretty much take the smallest
Speaker 7: investment and turn it into a million dollars overnight. And
Speaker 7: so out the money land is where most people go.
Speaker 7: And then out the money land ends up you end
Speaker 7: up losing all your money. And this is just the reality.
Speaker 5: Yeah, So there's a couple of things I want you
Speaker 5: to see here.
Speaker 2: Right, somebody's gonna be looking at this and they're like, yo,
Speaker 2: Troy Lawrence, Well, y'all bugging man. It says it's seven dollars, right,
Speaker 2: But we told you and we're going to reiterated again, right,
Speaker 2: each contract is worth one hundred years, and so our
Speaker 2: eyes are training and the lawrence we have the same thing.
Speaker 2: Once we see that number, we're moving to decimal twice.
Speaker 2: And so that's not really seven dollars, that's really seven
Speaker 2: hundred dollars.
Speaker 5: That's the bid. It's seven hundred dollars. I'm gonna show
Speaker 5: you why.
Speaker 2: And I think this is dope because I took this picture.
Speaker 2: I think Friday I took this picture. But if we
Speaker 2: go on to TD Maria Trade now, and I'm sure
Speaker 2: somebody will do this after they watched this whole class,
Speaker 2: that one seventy two strike and that one seventy five
Speaker 2: strike are now in the money, and so they're gonna
Speaker 2: be blue when you look at it. And so that's
Speaker 2: pretty interesting. Another thing is I want you to notice
Speaker 2: the prices. Right, If we look at the price, like
Speaker 2: that's seven hundred dollars bid, because it's so close, it's
Speaker 2: a lot cheaper.
Speaker 5: When we go out further.
Speaker 2: And I'm gonna show your example when we go out
Speaker 2: further right to like twenty twenty four, it's gonna be
Speaker 2: a lot pricier. And the reason being is that the
Speaker 2: likelihood of the stock of the asset, for this example, Apple,
Speaker 2: actually being one seventy five or one seventy when it's
Speaker 2: already at one seventy five now it's highly likely.
Speaker 5: So it's a premium on that.
Speaker 2: So like, this expiration date is for next month, but
Speaker 2: we're going to show you an example of what it
Speaker 2: looks like in a few years, and you're going to
Speaker 2: notice the price difference. But I wanted you to just
Speaker 2: key in on that, right, Like, this is not seven dollars,
Speaker 2: this is seven hundred. This is not nine dollars and
Speaker 2: twenty cents. This is nine hundred and twenty dollars. So
Speaker 2: that's the ass And this is a problem too. Like
Speaker 2: I get upset, Lawrence, you probably do too, right, Like
Speaker 2: I'll put a limit order in and then I'll look
Speaker 2: at last and we'll show people what last is, and
Speaker 2: I'll see somebody feels at nine to twenty and I
Speaker 2: have my limit at seven point thirty. What that does
Speaker 2: is it messes up the chain for the next person
Speaker 2: try to buy a contract. Now I have to raise
Speaker 2: my limit up because somebody who was inexperience came and said,
Speaker 2: all right, well I'll pay the premium, and so it
Speaker 2: kind of messes up the game a little bit. But
Speaker 2: we give you all the game right now so that
Speaker 2: that doesn't happen. So when we see that, and.
Speaker 7: Then one thing, Now, one thing I want to say
Speaker 7: is like when the option order doesn't execute. I know
Speaker 7: this happens to a lot of people, especially people that
Speaker 7: are not savvy with their platform, and that's something I
Speaker 7: really want to say, is like, really learn your platform too,
Speaker 7: the execution of your platform. It is okay to pay
Speaker 7: per trade on TDIR, Marrior Trade, Think or swim, take
Speaker 7: some practice trades and get used to like the execution part.
Speaker 7: Because actually buying options, like for the first time, I
Speaker 7: can even I can admit myself, my first time buying options,
Speaker 7: I had anxiety, like was I doing it right? Did
Speaker 7: the order feel properly? You know, these are kind of
Speaker 7: some of the questions that we kind of have from
Speaker 7: a psychological standpoint, to be honest, and so I want
Speaker 7: to make sure that, you know, people take time to
Speaker 7: understand their platforms, and if the order does not fail
Speaker 7: the first time, it is okay. To go ahead and
Speaker 7: refresh that order and re input that order. So yeah,
Speaker 7: that's it.
Speaker 2: Yeah, And so it stills.
Speaker 5: Somebody's like, how did he get seven hundred from seven dollars?
Speaker 2: Well, here's why. Again, each option contract is worth one
Speaker 2: hundred shares, right, so if one share right is one.
Speaker 2: If one share is seven dollars and you're buying one
Speaker 2: hundred of them, then that's but we got seven hundred.
Speaker 2: The easiest thing to do is when you see the
Speaker 2: bid or the ask, just move the depth moll twice right,
Speaker 2: and so that one contract is worth cent seven hundred
Speaker 2: dollars because each share is seven and you're buying a
Speaker 2: hundred of them, that's how you get seven hundred. Same
Speaker 2: thing if I bought five contracts, now I'm having five
Speaker 2: hundred shares at seven dollars, which would bring me to
Speaker 2: a total of thirty five.
Speaker 5: Yes, and chat if we get on that.
Speaker 2: Perfect perfect This is like when mister Millings is like,
Speaker 2: I got that, raise your hand and.
Speaker 6: You know it's something that like, if you've been doing options, it's.
Speaker 3: Not as hard as it may seem.
Speaker 6: If you just if this is your first time hearing
Speaker 6: about options, you may not beginning everything but that's why
Speaker 6: everything is all you know, education, and it's an ongoing process.
Speaker 6: So it's something that you know. It's not like you're
Speaker 6: gonna become an expert in an hour. But the more
Speaker 6: you do it, the more repetition you have, the more
Speaker 6: information you receive. Then you understand that it's really not
Speaker 6: that complicated, and you start to understand it's like speaking
Speaker 6: a foreign language, Like you can't learn a foreign language
Speaker 6: in one day, but you can't get the beginning fundamentals
Speaker 6: of learning that language. And then the more you're around people,
Speaker 6: the more you study it, now it actually starts to
Speaker 6: make sense to you.
Speaker 2: Yeah, it's repetition, like every time you come over, you
Speaker 2: know that this is what I'm doing. And so like again,
Speaker 2: you just get yourself familiar with it. Will you make mistakes? Yeah,
Speaker 2: we've had trades where we've lost and we've made some mistakes,
Speaker 2: and I make it very very clear and very transparent,
Speaker 2: like I talk about those mistakes on Market Mondays because
Speaker 2: I live by that JY line, right, Like I went
Speaker 2: through that, so hopefully you don't have to. But let's
Speaker 2: keep rolling. Let's keep rolling, all right, So this is
Speaker 2: what it will look like right when you put that
Speaker 2: order in, you put that limit of seven dollars.
Speaker 5: This is exactly what's going to look like.
Speaker 2: So I'm taking one contract at the one seventy two
Speaker 2: fifty call. It's a weekly, right, because they're looking at
Speaker 2: it like that's a few weeks away. Again, I'm doing
Speaker 2: it for my day, and this is what it equals, right,
Speaker 2: This is what it will cost me, seven hundred dollars
Speaker 2: and then obviously the brokerage is going to take their
Speaker 2: commission fee, and so it cost me seven hundred and
Speaker 2: sixty seven hundred dollars sixty five cents. That's if I
Speaker 2: was filled at that bid price. A lot of times
Speaker 2: you won't get filled at the bid price. But again,
Speaker 2: be patient. Sometimes you do, right, you might put this limit,
Speaker 2: the asset might drop in price and you're filled, and
Speaker 2: it might go below your limit price. And so that's
Speaker 2: key to know too, right, So stick to your script,
Speaker 2: know what your limit is, and do not budge on
Speaker 2: that limit.
Speaker 5: Yep, all right, So friends lawns, you want to go here?
Speaker 7: Yea.
Speaker 3: Yeah.
Speaker 2: So I'm just gonna say this real quickly. So now
Speaker 2: I've extended, so it's the same page. It's still td
Speaker 2: A meerrior trade. But now I've changed the expiration date,
Speaker 2: and so now it's not a month away, it's two
Speaker 2: years away. And so now look at the prices for
Speaker 2: these the option calls, right, like, look at the cold
Speaker 2: prices here. This is not twenty nine dollars and fifty cents.
Speaker 2: This is twenty nine hundred and fifty dollars. That's the bid, right,
Speaker 2: because the likelihood of Apple hitting the strike, which it
Speaker 2: already did today is very likely. The likelihood of it
Speaker 2: hitting these numbers are very likely. So when people go
Speaker 2: out further yeah, it's gonna cost you on because the
Speaker 2: chances of it happening, plus the time that it has
Speaker 2: to do it are highly likely. And it doesn't work
Speaker 2: in the brokeridges favorites, so they're going to charge your
Speaker 2: premium for it.
Speaker 7: But you got yeah, so yeah, it's going to be
Speaker 7: more expensive when you actually buy further out options like
Speaker 7: this for twenty twenty four. It's imperative as well that
Speaker 7: you notice as well that the bid and ask difference
Speaker 7: is a little bit wider than what you may have
Speaker 7: saw with the previous slide. A lot of times there's
Speaker 7: always not really as much demand when it comes to
Speaker 7: these type of options. We're going to cover that with
Speaker 7: open interest and imply volatility and volume. That's important to
Speaker 7: understand that what Troy just said, there's a reason why
Speaker 7: these are more expensive than previously. These are more expensive
Speaker 7: why because it's more likely that Apple actually hits these numbers. Now,
Speaker 7: if someone is a longer term investor, this may be
Speaker 7: a better option for you if you're not someone that
Speaker 7: is going to do the shorter term trading. If you're
Speaker 7: someone that's gonna do a lot of the longer term trading,
Speaker 7: this can really be great for you to be able
Speaker 7: to look at positions like this on companies like this
Speaker 7: because this can set you up better and you're not
Speaker 7: looking at it every single day. And also, the short
Speaker 7: term volatility in the markets doesn't really affect options like
Speaker 7: this that's dated out till twenty twenty four, and that's
Speaker 7: important to understand those January twenty eight, twenty twenty two,
Speaker 7: if Apple has, you know, a bad day, you're gonna
Speaker 7: significantly see that hurt on your cause. But in January nineteen,
Speaker 7: twenty twenty four, Apple has a bad day, it's not
Speaker 7: going to really affect these premiums. So it's kind of
Speaker 7: important to understand that you're playing a long term game
Speaker 7: and these costs more money.
Speaker 2: And so yeah, yeah, And I know people hear the
Speaker 2: word long term and they think options, and I'm like, well,
Speaker 2: in the options trading long term would be two and
Speaker 2: a half to three years. And then we'll talk about
Speaker 2: maybe I should give away that game today, right, how
Speaker 2: to turn into a long term investment. Yeah, yeah, let's
Speaker 2: do it. Let's do it. Let let's keep rolling though.
Speaker 2: All right, So this is an actual option chain, and Lawrence,
Speaker 2: I'm gonna let you go crazy here because yesterday you
Speaker 2: went crazy with this, so I'm gonna let you go crazy.
Speaker 5: So explain to them exactly what they're seeing here.
Speaker 7: For sure, non perfect. So we've pulled up now Apple
Speaker 7: January nineteenth, twenty twenty four, so it's seven hundred and
Speaker 7: sixty one days to expiration. So we have the expiration date,
Speaker 7: we have the calls, we have the bidden ass spread.
Speaker 7: So let's take a look. So if you look on
Speaker 7: the call side here, you have a calls listed all
Speaker 7: the way from the fifty call. So that's a deep
Speaker 7: in the money call. So imagine people who have been
Speaker 7: holding these one hundred dollars calls, fifty dollars, calls one
Speaker 7: hundred and fifteen, one hundred and twenty five. All of
Speaker 7: these people are now in the money and they have
Speaker 7: all the way until twenty twenty four. So what does
Speaker 7: that mean? That means what they have intrinsic value. So
Speaker 7: it's important and it's important to really understand and pay
Speaker 7: attention to two things, volume and open interest. A lot
Speaker 7: of times people say like, how do I get my strike?
Speaker 7: Where should I be looking for my strike? Volume? You
Speaker 7: want to pay attention to the volume. So just because
Speaker 7: the option is in the money doesn't necessarily mean that
Speaker 7: that's an option that you want to purchase. You try
Speaker 7: to look for the options that have the highest volume
Speaker 7: and highest open interest. Why is that key Because options
Speaker 7: increase not just because the stock price increased, but they
Speaker 7: increase because of something called VEGA, which is implied volatility IV.
Speaker 7: So the increase in demand for your option can actually
Speaker 7: cause that options price to actually increase. So, for example,
Speaker 7: in the end the money, if you look at the
Speaker 7: one fifty call, it has a volume. So what is volume?
Speaker 7: Let's talk about volume the total amount of contracts traded
Speaker 7: at that given day. Open interest the total amount of
Speaker 7: contracts open at that given strike, So you have eleven
Speaker 7: thousand open interests, so the amount of contracts that are
Speaker 7: actually open. So a lot of times, and I see
Speaker 7: a question that just came in. What is considered high
Speaker 7: volume A lot of times anything pretty much over five hundred.
Speaker 7: A lot of times consider a little bit higher on
Speaker 7: the volume. It also depends on what particular options chain
Speaker 7: that you're looking at. The S and P five hundred
Speaker 7: is the most liquid options chain out there. A lot
Speaker 7: of times, how we're looking here, we're seeing like seventy
Speaker 7: two twenty fifty eight. You won't see that on the
Speaker 7: S and P five hundred. You'll see volume of five thousand,
Speaker 7: ten thousand open interests of twenty thousand and thirty thousand.
Speaker 7: S and P five hundred is actively traded.
Speaker 2: Yeah, And I just want to note too, Right, since
Speaker 2: we're so far out, you're not going to.
Speaker 5: See those type of numbers.
Speaker 2: But if we had opened that Apple January twenty eighth goal,
Speaker 2: you would see those type of numbers, right, So you'll
Speaker 2: see the twenty thousands because it's so that's very in
Speaker 2: the near future, right, this is so far out that
Speaker 2: most people aren't looking at these, but I will say,
Speaker 2: if you look at that two hundred, right, you see
Speaker 2: that volume over over five hundred right now and a
Speaker 2: lot of open interest. So somebody was thinking on the
Speaker 2: same wavelength that we were when we said, all right, well,
Speaker 2: this is how we got our strike here, because if
Speaker 2: it just does ten percent over the next two years,
Speaker 2: each year, it's to eleven to be a number, and
Speaker 2: we went below it.
Speaker 7: Yeah, Now that's key because you want to pay attention
Speaker 7: to the options that have you know, a high volume,
Speaker 7: a high open interest, particularly like Troy just said that
Speaker 7: two hundred. So like one thing that I will say
Speaker 7: is is that institutions try to hide a lot of information.
Speaker 7: One thing that you can't hide is you can't hide
Speaker 7: money flow. You can't hide where money is flowing into.
Speaker 7: And that's what you can see from volume open interest
Speaker 7: is where is money flowing into? The key to really
Speaker 7: a lot of times understanding you know where a stock
Speaker 7: is heading to. It's seeing, hey, where are the bets
Speaker 7: being placed. Obviously we're seeing a lot of bit to
Speaker 7: be in place that they're two hundred called for Apple,
Speaker 7: And so the open interest in a volume a lot
Speaker 7: of times can express and show you that you're also
Speaker 7: seeing here similar, you're seeing the bid ass spread, so
Speaker 7: you're seeing that different. So the bid obviously the price
Speaker 7: that you're bidding at the ass. You don't want to
Speaker 7: use that price. If you get filed at the ass
Speaker 7: you're more than likely going to be down instantaneously. So
Speaker 7: the volume is the total amount of contracts being traded
Speaker 7: at that given time. Then the open interest is the
Speaker 7: total amount of contracts actually opened at that time.
Speaker 2: So yeah, all right, So why are people trading options?
Speaker 2: This is very important? This is very important, right, And
Speaker 2: so a lot of people have heard the numbers, they
Speaker 2: seen some of the percentages, they see people putting up
Speaker 2: their numbers on Instagram and social media. Right, it's because
Speaker 2: the growth of the option contract is different from the
Speaker 2: growth of the asset, right, And so this is key.
Speaker 2: And you have to remember this trend is your friend, right,
Speaker 2: and so the asset just needs to trend towards your
Speaker 2: call or your puts stripe price. And so I'm gonna
Speaker 2: give you example here, right, So if apple stock was
Speaker 2: traded right now one hundred and seventy files eighty seven cents,
Speaker 2: if it grows to one hundred and ninety two dollars,
Speaker 2: that's a ten percent increase on your investment. So if
Speaker 2: you bought the shares or you bought the stock at
Speaker 2: that number and a brutal one hundred ninety two dollars,
Speaker 2: it's a ten percent increase. If you bought a bid
Speaker 2: at seven dollars, like we just showed you earlier, and
Speaker 2: it was filled at seven dollars or seven hundred dollars,
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Speaker 1: An illegal alien from Guatemala charged with raping a child
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Speaker 2: Sponsored by the United States Department of Homeland Security grows
Speaker 2: as the asset grows. So if the big grows to
Speaker 2: ten fifty cents or one thousand dollars one thousand and
Speaker 2: fifty dollars, you've made fifty percent on your investment. And
Speaker 2: so obviously that's a forty percent difference, and so people
Speaker 2: find it way more attractive to being options because the
Speaker 2: growth potential is just a little bit more a lot
Speaker 2: more than you could if you just invest it in
Speaker 2: the asset itself.
Speaker 5: What's best? Why not do both?
Speaker 3: Right?
Speaker 2: Why not buy the stock and also have a call
Speaker 2: or a put to protect yourself and head yourself against
Speaker 2: any pullback on the asset itself. And so this is
Speaker 2: very key, right, That's a huge difference. And this is
Speaker 2: when it gets people's eyes open. They're like, how do
Speaker 2: you do ten percent? How do you do one hundred?
Speaker 2: How do you do one thousand percent? This is why
Speaker 2: because we get bids and we keep them at our limits,
Speaker 2: and we keep them long term, and we are patient
Speaker 2: with them. We'll let them grow. And we also this
Speaker 2: is key and I want everybody to remember this right,
Speaker 2: And this I'm Gonnake Sholey's analogy. When you go to
Speaker 2: the movie theater, before the movie starts, the first thing
Speaker 2: they do is tell you where the exits are. And
Speaker 2: so I want you to treat your portfolio the same way.
Speaker 2: Don't get into a position before you know where you're
Speaker 2: going to exit, whether it's a percentage or whether it's
Speaker 2: a dollar amount. And so when people ask well when
Speaker 2: should I sell? When should I sell? You can sell
Speaker 2: whenever you want right whenever your exit strategy was, that's
Speaker 2: what you should stick to. And so if you made
Speaker 2: twenty percent and twenty percent was your exit, leave at
Speaker 2: twenty right now the pain will herd when you see
Speaker 2: it go to one hundred. But you got to be
Speaker 2: comfortable with no one like that was my plan. I'm
Speaker 2: sticking to it, And so people just have to remember
Speaker 2: that because you do that consistently, Like, we shouldn't slouch
Speaker 2: at twenty percent. It's a great return, right, It's just
Speaker 2: that people get entice when they see that, Oh wait,
Speaker 2: there's so much more potential. But as you get more
Speaker 2: experienced and more seasoned trading, you'll see that. All right,
Speaker 2: well that was my exit this time. What will I
Speaker 2: do next time? What's going to be my alternative? What
Speaker 2: have I learned from that investment going forward?
Speaker 7: Yeah, And I even wanted to touch on this because
Speaker 7: I think this is I think this is important because
Speaker 7: it's good to have a daily goal, especially if you're
Speaker 7: someone who's doing a shorter term options trading. I know
Speaker 7: a lot of people are a lot of times your
Speaker 7: daily goal can keep you out of trouble. And take
Speaker 7: this from someone that you know has lost money trading
Speaker 7: options in a short term basis before sticking to a
Speaker 7: daily goal, and then also having like a goal, like
Speaker 7: a percentage goal, is really really key. A lot of
Speaker 7: times we get into these trades and I see a
Speaker 7: lot of times people are up, you know, five hundred percent,
Speaker 7: and they're DM and me and they're asking me what
Speaker 7: should I do? Should I sell? Like, I'm like, guys,
Speaker 7: come on five hundred percent. I mean, I don't know
Speaker 7: where they're doing that at.
Speaker 3: Tell me.
Speaker 7: So the thing is is, guys, be willing to take profit,
Speaker 7: and don't be greedy. Please, don't be greedy. Be willing
Speaker 7: to take profit. And if you have multiple options and
Speaker 7: you see an over one hundred percent return, there's nothing
Speaker 7: wrong with using the fifty rule. What is the fifty rule?
Speaker 7: So if Troy has ten options and they've went up
Speaker 7: one hundred percent, there's nothing wrong with him taking five
Speaker 7: and leaving five runners to say, hey, you know, I
Speaker 7: can take these five off the table and I can
Speaker 7: leave the other five. So the fifty rule is something
Speaker 7: that I really want to apply. I apply all the time.
Speaker 7: You never lose money taking profits. And I tell people
Speaker 7: that the fifty rule can really keep a lot of
Speaker 7: people out of trouble, especially with the short term options
Speaker 7: or with the longer term options. To make sure that
Speaker 7: you're taking your profits and securing your bag.
Speaker 2: That's important Shore, I know, shout out to Ben. That's
Speaker 2: something that he does. Right, If he buys ten contracts,
Speaker 2: he takes profit. I'll sell five and I'll let five
Speaker 2: keep going. And so that's a great strategy. I think
Speaker 2: that's the maining strategy. A lot of people will get
Speaker 2: caught up like can I sell before my strike date,
Speaker 2: before my expiration date? Yes, you can sell before your
Speaker 2: exploration date. Can I take profit? You can take profit
Speaker 2: whenever you want, right, That's up to you. But again,
Speaker 2: create your strategy. Know what your strategy is. So when
Speaker 2: it hits your number, you're you're okay with it and
Speaker 2: you're taking profit. There's nothing wrong with that.
Speaker 6: Yeah, you do have taxes, short term capital gain tax.
Speaker 6: If you if you sell a position under a year
Speaker 6: and if you keep it for longer than a year,
Speaker 6: it's long term capital gains. So long term of day, Yeah,
Speaker 6: long term capital gains is lower than short term capital gain.
Speaker 6: So that is something that just you know, at least no,
Speaker 6: at least be aware of something that might want to
Speaker 6: take and take a sideration.
Speaker 3: You might not want to take take consideration, but please do.
Speaker 2: I just want to go back here really quickly. It's
Speaker 2: let me go back here really quickly. I'm gonna get
Speaker 2: some game real quick. Merry Christmas. No, So a lot
Speaker 2: of people talk about long term invest in this saying, look,
Speaker 2: if you're investing options, it's not long term investment. I'm
Speaker 2: gonna show you how you can turn it into long
Speaker 2: term investment. And fran Lawrence, we spoke about this and
Speaker 2: you were like, yeah, this is exactly how you do it.
Speaker 2: And so here's what happened. This is actually in my
Speaker 2: account right now. So in a maybe May twenty twenty,
Speaker 2: I bought five contracts at AMD at a seventy five call.
Speaker 2: Right So it was a call I said, it's going
Speaker 2: to appreciate. So at the time it was fifty seven dollars.
Speaker 2: I said, all right, well, I'm looking at the fundamentals.
Speaker 2: I looked at the technicals. I said, all right, we're
Speaker 2: in Corona. This is a semiconductor. We love semi conductors.
Speaker 2: That's why we keep talking about them in hit. I'm like,
Speaker 2: seventy five, that's my call for January twenty twenty two.
Speaker 2: So I gave myself at least eighteen to nineteen months
Speaker 2: for this contract to mature. However, AMD has run up.
Speaker 2: The actual stock itself has run up, and so obviously
Speaker 2: as the stock runs up, so does my intrinsic value
Speaker 2: of my contracts. And so that's run up pretty nicely.
Speaker 2: I think AMD hit a high one point sixty three.
Speaker 2: Did it get up to one sixty three? My correct
Speaker 2: on that, Yeah, so it's an all time high. I
Speaker 2: want to say, like one sixty one sixty three, all right,
Speaker 2: And so remember my call was at seventy five. And
Speaker 2: so here's what I did. I had the right to right,
Speaker 2: I exercised the contract. And so if I have five
Speaker 2: contracts and you don't even have to exercise all five,
Speaker 2: I chose to. The key thing is when you exercise,
Speaker 2: I have to have the money in my account to
Speaker 2: buy those shares. So here's how this looks. I exercised
Speaker 2: all five contracts at seventy five dollars, and so five
Speaker 2: hundred shares right at twenty five at seventy five dollars,
Speaker 2: because I have the right to buy it at that,
Speaker 2: it's going to cost me thirty five thousand dollars. Luckily,
Speaker 2: I had a great year, so I had the thirty five.
Speaker 2: But I didn't have to. I could have just did
Speaker 2: the five hundred. Would it cost me seventy five hundred?
Speaker 2: And I'm like, okay, bet, And somebody's like, wait, that's
Speaker 2: a lot of money, and that's a waste of money.
Speaker 5: How's this long term investment? Well, here's why.
Speaker 2: Today, if you try to buy five hundred shares of AMD,
Speaker 2: it would cost you seventy one thousand, five hundred dollars.
Speaker 2: Why because you don't have the option to buy it
Speaker 2: at seventy five. I did that, so I have the
Speaker 2: right to do it at seventy five dollars. So here's
Speaker 2: the difference, right, it's right now at one hundred and
Speaker 2: forty three dollars. I'm taking it. Seventy five is which
Speaker 2: my call by contract was at. So there's a difference
Speaker 2: of sixty eight dollars. So when I exercise this contract,
Speaker 2: as soon as I exercise it, each share has a
Speaker 2: sixty eight dollars in value, right, So I bought them
Speaker 2: at seventy five. As soon as I exercised the contract,
Speaker 2: those five hundred shares now each have sixty eight dollarsand value.
Speaker 5: So that easy math right there for you.
Speaker 2: Five hundred series time sixty eight dollars is thirty four thousand.
Speaker 2: So now the thirty five thousand that are spending doesn't
Speaker 2: look as crazy because I already have thirty four thousand
Speaker 2: in value as soon as.
Speaker 5: I exercise it. But that's not the best part.
Speaker 2: Let me go to Let me go ahead, Let's go
Speaker 2: to bar shark. Let's go to bar shark. Everybody can
Speaker 2: still see my screen, Yes, sir, Let's look at the
Speaker 2: history of the performance of AMD. Right, Let's look what
Speaker 2: it has done over the past twenty years. Let's look what
Speaker 2: has done over the past ten years. Let's look what
Speaker 2: has done over the past five years, three years, two years.
Speaker 2: Guess what I now have. I have five hundred shares
Speaker 2: of AMD that I could have for the rest of
Speaker 2: my life. Right, I don't have an expiration data anymore.
Speaker 2: I now have five hundred shares, clear and free. What
Speaker 2: can I do with that? I could pass that down,
Speaker 2: I could add to it, I can make it another position.
Speaker 2: While I'm like, all right, I want to do a
Speaker 2: thousand shares of this company, I heard my brother Ian say, look,
Speaker 2: AMD is going to be three twelve by January twenty four.
Speaker 2: So you're looking at a guy who got them at
Speaker 2: seventy five dollars, and I have five hundred shares that
Speaker 2: potential growth. And obviously we speak about semi conductors and
Speaker 2: supply chain shortage and how that's going to correct yourself
Speaker 2: in either the second half of t twenty twenty two
Speaker 2: or beginning of twenty twenty three. Either way, I'm still
Speaker 2: going to be patient because now I have five hundred
Speaker 2: shares long term. And so when people talk about options
Speaker 2: and they say it's not really a long term investment,
Speaker 2: it can be if you get the asset at a
Speaker 2: valued price and it grows over the time of your contract.
Speaker 5: So it went from one foot not showing, Oh it's
Speaker 5: not showing that.
Speaker 7: Yeah, it's not showing.
Speaker 2: Oh, hold on, hold on, I got shared the right
Speaker 2: then new share my bad.
Speaker 4: Y'all.
Speaker 2: Y'all can see it.
Speaker 7: Now, Yes, sir, you see the bar chart, Yes, sir?
Speaker 5: All right, So we're looking at here five hundred and seventy.
Speaker 2: Percent, right, we're looking at two thousand per one thousand
Speaker 2: percent not doubt percentage seven hundred to twenty five, and
Speaker 2: so like if just based on that growth, even if
Speaker 2: it grows ten percent a year, I don't ever have
Speaker 2: to sell those five hundred hundred years, right, I could
Speaker 2: pass those one hundred years.
Speaker 5: I can give those hundred shares five hundred years.
Speaker 2: And so now that option that was a two year
Speaker 2: option right on my expiration date now becomes a long
Speaker 2: term investment inside of my portfolio. So that's another strategy
Speaker 2: like people really don't talk about, but they should. And
Speaker 2: a lot of times if you go to YouTube and
Speaker 2: you go to they'll tell you like ninety nine percent
Speaker 2: of the times you shouldn't exercise your contract. That's true
Speaker 2: if you're doing short term, but in these rare situations
Speaker 2: where the asset has grown and it has hit all
Speaker 2: time highs and your contract is so low, it kind
Speaker 2: of makes sense to exercise it because you have the
Speaker 2: long term shares for the rest of your life. I'm
Speaker 2: also this is true. I'm also I also have a
Speaker 2: five to ten This is a game. I never told
Speaker 2: anybody this. I have a five to ten testicle for
Speaker 2: January twenty three, right, So I can buy one hundred
Speaker 2: shares of Tesla at five hundred dollars today if I
Speaker 2: wanted to right, I'd have to have the money. Let's
Speaker 2: say Tesla runs to fifteen hundred. Each one of those
Speaker 2: hundred shares has now gained one thousand dollars. Right, if
Speaker 2: Tesla gets to fifteen hundred at some point over the
Speaker 2: next twelve months, right, because so vile talent in trades
Speaker 2: like that, could it happen?
Speaker 4: Yeah?
Speaker 2: If it gets a twelve hundred, guess what each share
Speaker 2: now has seven hundred dollars. So now I have seven
Speaker 2: hundred shares that all each have gained seven hundred dollars value,
Speaker 2: I'm up seventy thousand. So these are some of the ways,
Speaker 2: in some of the strategies that you can turn your
Speaker 2: option contract into a long term situation. Now, there are
Speaker 2: some things that you need to know, right, So the
Speaker 2: money you spent for the contract, right, sometimes and a
Speaker 2: lot of times, and if launch you probably can explain
Speaker 2: even more, the intrinsic value is lost, right, you can't.
Speaker 2: You don't get the money that you paid for the contract.
Speaker 2: It becomes part of the fees that you do for
Speaker 2: exercise in it. But when you think long term, right,
Speaker 2: maybe it was I think that AMD call was like
Speaker 2: four thousand dollars long term that four thousand dollars gonna
Speaker 2: come back. Yeah, the market goes up, AMD goes up,
Speaker 2: and like I said, let's say it gets to two
Speaker 2: hundred three hundred, I'm sitting here pretty with five hundred shares.
Speaker 2: I'm not thinking about the three hundred three thousand that
Speaker 2: I paid to actually get the contracts. So that's another
Speaker 2: little strategy. Most people don't talk about it. I'm telling
Speaker 2: you because I did it, and I did it with
Speaker 2: Apple too. That's how I explained that. Last year I
Speaker 2: got my six hundred shares of Apple, I did the
Speaker 2: same thing apple split. I was like, oh, this is
Speaker 2: perfect I can get I can get a five hundred,
Speaker 2: six hundred shares at one hundred dollars perfect now, when
Speaker 2: it was one hundred and twenty seven dollars at the time,
Speaker 2: I'm like, all right, that's not that's pretty cool interesting
Speaker 2: values there. But now that Apple is run up to
Speaker 2: one hundred and seventy five and I got them at
Speaker 2: one hundred. Now you got six hundred shares that each
Speaker 2: game seventy five dollars. And so that's just like another
Speaker 2: little strategy.
Speaker 6: Yeah, yeah, a whole lot of games, ladies and gentlemen
Speaker 6: that was yeah, ninety minutes. Man, we're not done yet,
Speaker 6: but it's definitely gonna be sae. I've seen some people asking,
Speaker 6: is it's gonna be saved on YouTube. Yes, it's gonna
Speaker 6: be saved on YouTube. So watch the replay. Talked about
Speaker 6: Greeks earlier in the presentation, so everything that you probably
Speaker 6: have questions about was probably covered over.
Speaker 3: The course of the ninety minutes. But we're gonna answer
Speaker 3: some questions.
Speaker 6: But before we do, once again, I just wanted to
Speaker 6: just kind of let you guys know what's going on here.
Speaker 6: So EYL University this is we do classes every single week,
Speaker 6: but we're actually adding something to.
Speaker 2: University breaking news alert all ready for this. I let
Speaker 2: you doing no, I gohad man, that's good thing.
Speaker 3: I mean, you know, you know the full details.
Speaker 5: So let me break this down.
Speaker 2: So obviously, Lawrence has been a part of e y
Speaker 2: L University, has been teaching the third Wednesdays of each month.
Speaker 2: But he said, you know what, I got a calling
Speaker 2: and I got asked do I want to teach? And
Speaker 2: he's you know, he was like, yeah, I want to teach,
Speaker 2: but I don't want to teach at Stanford. I want
Speaker 2: to teach at Yale or Harvard. I want to teach
Speaker 2: at e y L University. And so who are we
Speaker 2: not to oblige when we have a pride you like this,
Speaker 2: and so Frank Laurence like ke'p saying, Lawrence is going
Speaker 2: to do something special. He's going to be teaching every
Speaker 2: Monday and every Wednesday starting in January twenty twenty two.
Speaker 5: That's not it though.
Speaker 2: Every Monday at noon he will be trading live with
Speaker 2: you in eyl University live like actually as the market
Speaker 2: is open, he'll be in there and he'll be guiding,
Speaker 2: and he'll be teaching as the market's open, trading with
Speaker 2: you on Wednesdays at six.
Speaker 5: Wednesday at six shoutout to rants gyms.
Speaker 2: I know that drops. He will be teaching live Wednesday's
Speaker 2: at six to eyl University. Earnest every third Wednesday he
Speaker 2: will still be doing his class. He is a full
Speaker 2: time professor and a contributor to e y L. This
Speaker 2: is his chaining day. Everybody put the graduation caps in
Speaker 2: the chat. Lawrence is officially EYL Lawrence. He's officially part
Speaker 2: of the team. Everybody give him a warm welcome.
Speaker 6: And I appreciate that and so yeah, he's definitely a
Speaker 6: tenured professor and we do all we do all a
Speaker 6: lot different stuff in the UY University. We do crypto,
Speaker 6: we do investing, credit, real estate, so you know, have
Speaker 6: different professionals come teach classes. And one of the things
Speaker 6: that we're gonna do for twenty twenty two is have
Speaker 6: a few people actually teach like more than like one
Speaker 6: class every three months, like they might teach like, you know,
Speaker 6: twice a month or even every single week possibly. So
Speaker 6: that's something that you know, it's broad range, like I said,
Speaker 6: covering from credit to real estate, and you know, of
Speaker 6: course stocks investing, we've been doing that, so it's just
Speaker 6: you know, just adding on to that, and we felt
Speaker 6: Lawrence was the perfect person to you know, to spearhead
Speaker 6: that for So.
Speaker 2: I'll be in you know what, January Thurs the first one.
Speaker 2: I'm gonna be in there too. Yeah, yeah, I'm there.
Speaker 2: Appreciate that, Earns. I'm there.
Speaker 6: So if you're not part of YO University, man, I'm
Speaker 6: telling you it's the fastest growing online community for everything.
Speaker 3: It's not.
Speaker 6: It's not just an investment group, it's a financial institution
Speaker 6: cover every single thing possible. So once again, I put
Speaker 6: the link up, go to Eyo University dot com running
Speaker 6: the sale flash sale twenty four hour flash sale, might
Speaker 6: extend it for forty eight hours, but.
Speaker 2: Oh we could do we can call up some of
Speaker 2: our group chat friends and have them come as well.
Speaker 6: Yeah, you never know who. We could get anybody to come.
Speaker 6: So sixty five sixty five percent off for the whole
Speaker 6: entire year. It's like seven hundred dollars for the whole
Speaker 6: entire year. And it covers all of those things that
Speaker 6: we just talked about and more so if you want
Speaker 6: to join, click the link. Love to have you on
Speaker 6: the other side. And we got some physical events too.
Speaker 6: We're gonna be doing some things for Eyo University we
Speaker 6: talked about.
Speaker 3: A couple of days ago.
Speaker 6: So you know, we really want to make it more
Speaker 6: of a community type of vibe and it's something that
Speaker 6: we're really looking forward to in twenty twenty two, just expanding.
Speaker 3: The vib So yeah, for sure.
Speaker 6: So part of it part of the classes that you know,
Speaker 6: you get to ask questions. So this, like I said, this,
Speaker 6: this went a little longer than we probably thought, so
Speaker 6: the questions might be a little bit shorter. But now
Speaker 6: we're gonna we're gonna go to some earners for some
Speaker 6: questions and you know, answer some questions for the class.
Speaker 5: Is going to be He's gonna be It's twelve noon
Speaker 5: every Monday.
Speaker 7: Right, yep, twelve noon every Monday, and we'll be talking
Speaker 7: a lot. So it'll be right in the middle of
Speaker 7: the market day, catching a lot of people on the
Speaker 7: lunch breaks in the middle of the day. I figured
Speaker 7: that'd be like the best time, even kill So.
Speaker 2: Yeah, that's a fact when we had the conversation, like,
Speaker 2: I think that's the best time because people on their
Speaker 2: lunch breaks, they can actually sit down at the computers.
Speaker 2: They could actually focus, and so I think that was
Speaker 2: I mean, that was pretty thoughtful of you. And that's
Speaker 2: the true. They think I'm captain, but we really had
Speaker 2: this conversation like they were like, you should actually teach
Speaker 2: at at a university, and you told, like tell him,
Speaker 2: like you really said no.
Speaker 7: Like I it was like I had the conversation and
Speaker 7: you know, my girl she asked me, she said, you know,
Speaker 7: like could you see yourself teaching at a university? And
Speaker 7: I said, I mean I couldn't see myself teaching at
Speaker 7: a college and sticking to you know, just like a
Speaker 7: book or something like the knowledge that I have. Like
Speaker 7: for me, it's like I'm really passionate to share with
Speaker 7: people because I can see, like how can like directly
Speaker 7: change like your life, like the stop market honestly, like
Speaker 7: really changed my entire life, so like I wanted to
Speaker 7: continue to change other people's lives. So whatever way I
Speaker 7: can really give as much information as possible, where it's
Speaker 7: hitting people midday, hitting people early more than hitting people
Speaker 7: late at night, whatever it is, it's like I'm willing.
Speaker 2: To do it. So yep, crazy, crazy crazy. Yes, that's
Speaker 2: the Eastern Standard time. Y'all Eastern Standard Time East the
Speaker 2: Santa Time.
Speaker 3: Appreciate that, brother. Let's go to some how how old
Speaker 3: do you? Lawrence Man?
Speaker 7: I just turned twenty two in October.
Speaker 3: Prodigy.
Speaker 2: When we say prodigy, we really need twenty twenty two
Speaker 2: years old, prodigy different, different, All right, let's go to
Speaker 2: let's go to some of our earners. Let's see is Jenny,
Speaker 2: it might not be here, victim, were coming to you?
Speaker 2: I mut yourself. You've been muted.
Speaker 5: What's going on?
Speaker 4: Don't expect that?
Speaker 3: Well, don't do this. Hey, I'm here, what's going on?
Speaker 8: Hey, let's up I'm actually some guys I got picked,
Speaker 8: but thank you.
Speaker 4: Yeah.
Speaker 8: So, so my question was, so I was doing long
Speaker 8: term stock stocked investing for a while. I mean, shout
Speaker 8: out to y'all because you know, listening to y'all for
Speaker 8: a year and stuff. You know, definitely learned learn that's
Speaker 8: the way to do it and stuff. But looking to
Speaker 8: get into options and trying that same approach, you know,
Speaker 8: the long term, long term clause. But I was, I
Speaker 8: haven't made the decision to do it yet because right
Speaker 8: now the market is at all time high. Number one,
Speaker 8: so maybe waiting for some better premiums. But number two,
Speaker 8: what's a good technique that you guys use for picking
Speaker 8: your strike prices? And I know one gentleman who who
Speaker 8: was on your on one of the episodes one time,
Speaker 8: he had said like one point five times the growth
Speaker 8: over the last year. Yeah, something of that sort, and
Speaker 8: then that's how you choose this strike price. But but
Speaker 8: what do you guys use for like choosing your strike prices?
Speaker 7: Yeah, so I'm I'm gonna be honest, like for me, like,
Speaker 7: for example, with a stock like Apple that's at like
Speaker 7: one seventy five right now, A lot of times what
Speaker 7: I personally will do is like I only buy in
Speaker 7: the money options. So like for me, I don't buy
Speaker 7: out the money options. Uh, you know, I argue against it.
Speaker 7: So for me, my strategy is I like to a
Speaker 7: lot of times go at least two to three in
Speaker 7: the money. So for example, the stocks at one seventy five,
Speaker 7: there's obviously gonna be a one seventy two point five
Speaker 7: one seventy one sixty seven point five, one sixty five.
Speaker 7: A lot of times I try to aim to go
Speaker 7: at least two to three options in the money, but
Speaker 7: I also am looking at the volume and open interest.
Speaker 7: I like to see the options that you don't have
Speaker 7: the highest amount of volume and open interest, and those
Speaker 7: are the options that I usually target, even with the
Speaker 7: leap options. A lot of times I'd like to get
Speaker 7: like an at the money strike, So like if the
Speaker 7: stocks at one seventy five, I go and get that
Speaker 7: one to seventy five strike for twenty twenty four. My
Speaker 7: biggest thing when it comes to options is like you
Speaker 7: want to get the most intrinsic value, Like a lot
Speaker 7: of times the out the money strategies, even if you
Speaker 7: have a leap for example, you know, I look, you know,
Speaker 7: a lot of times I look at a lot of
Speaker 7: people's portfolios. They'll share things with me. The number one
Speaker 7: loser in everyone's portfolio that I've seen as ARKKK that's
Speaker 7: the number one loser across the board, and it's people
Speaker 7: who've had leap options on RKKK and they've had out
Speaker 7: the money leaps. So the thing is is that even
Speaker 7: though you get out the money contract and it may
Speaker 7: be far away from expiring, does not guarantee that you're
Speaker 7: actually gonna go ahead and profit. So buying a leap
Speaker 7: option does not guarantee profit. And what I want to
Speaker 7: say is is that when it comes to your strike price,
Speaker 7: try to get as close to the money as possible.
Speaker 7: And if you can't get in the money, you know,
Speaker 7: try to, you know, keep it at like that one
Speaker 7: seventy enno point five point. You just don't want to
Speaker 7: be leaping and getting two forties in two twenties when
Speaker 7: a stock is at one seventy. You want to protect yourself.
Speaker 2: So yep, yeah, I think all those things are key.
Speaker 2: I always looking at the past performance and calculating, Right, well,
Speaker 2: I just showed you that the Apple situation, right, we
Speaker 2: just didn't guess two hundred. We were kind of saying
Speaker 2: that because if you take the ten percent, if you
Speaker 2: just look at moving ten percent based on what's done
Speaker 2: in the past, I mean you can kind of get
Speaker 2: the gauge on where it could be headed. And what
Speaker 2: I think Lauren says is important. Man, I always, always, always,
Speaker 2: I always check the valume and I always check the
Speaker 2: open interest because that'll tell you a barama of like,
Speaker 2: all right, well, this is kind of where the market
Speaker 2: the money's moving for this option. And there's a couple
Speaker 2: of other things that I use as well. I checked
Speaker 2: the history of the option. I know in each trade,
Speaker 2: when you go into details, you can check the history
Speaker 2: of the option, you can see where it originated, and
Speaker 2: based on where it's originated, you can get a gauge
Speaker 2: of where it was at its all time high. And
Speaker 2: even when it's there, I'm like, all right, well, I
Speaker 2: don't want to buy anything at a premium. If the
Speaker 2: option contract originated at twenty dollars and it ran up
Speaker 2: to forty, I want to wait till it pulls down
Speaker 2: to eighteen, right, because I just want to have, like
Speaker 2: you said, I want to have my built in terms
Speaker 2: with value before I get into the position. So that's
Speaker 2: another little strategy you can use. That's a lot bick there, Okay.
Speaker 8: No, yeah, I was just taking some notes. No, that's
Speaker 8: definitely great, and that's what I've been learning recently too. Yeah,
Speaker 8: at the money or in the money is just safer
Speaker 8: and just guaranteeing that you can definitely, you know, secure
Speaker 8: that you're going to make some money and not lose
Speaker 8: that premium.
Speaker 2: Yeah, and we talked about singular positions, but I mean
Speaker 2: the safest thing that we do is we invest in ETFs.
Speaker 2: Like so you can have option contracts on ETFs and
Speaker 2: so we definitely have them on XLK and that's a
Speaker 2: mah and xly qqq. So we definitely have them on
Speaker 2: our all Star teams as well. They don't move as fast,
Speaker 2: but but if you get them at the right price,
Speaker 2: right price, definitely could have some value for sure. I
Speaker 2: appreciate that.
Speaker 3: I can't say nothing about uts after the Apollo.
Speaker 2: Don't tell anybody, I ain't got it, nobody.
Speaker 8: You had to be there what happened at the Apollo.
Speaker 3: You know you had to be there.
Speaker 5: That's a fact.
Speaker 2: I ain't got it.
Speaker 4: Bro. You know the rule word api, bro word.
Speaker 6: Yes, the classes at euy University are recorded. I saw
Speaker 6: somebody asked that question or recorded our All.
Speaker 2: Right, let's go to Melissa Kingston. Melissa, were coming to you?
Speaker 2: I mute yourself.
Speaker 5: You've been unmuted?
Speaker 2: What's going on?
Speaker 4: Oh?
Speaker 2: Now you gotta ummute yourself. You there you go? Hi,
Speaker 2: what's up?
Speaker 9: Nice to meet you. You and the university just joined
Speaker 9: about three weeks ago, so I'm just learning everything. Bran
Speaker 9: new All question, if for beginners and options work and
Speaker 9: what is the best place to start to invest?
Speaker 8: Uh?
Speaker 7: And options? Yeah?
Speaker 3: Like platform platform wise?
Speaker 5: Yeah?
Speaker 6: Uh huh, Well, I mean I guess you know, I
Speaker 6: personally use TD Ameritrade.
Speaker 3: I think they I like that they use the interface.
Speaker 6: Not to say that, you know, I'm not like saying
Speaker 6: that that's the only place to go, but that's what
Speaker 6: I personally use for my option training.
Speaker 3: I like TD.
Speaker 6: I use Fidelity too, but I just like tds use
Speaker 6: the interface better and a couple other reasons.
Speaker 3: I just like TD Ameritrade.
Speaker 4: Yeah.
Speaker 9: And another question when it comes to taxes, uh, can
Speaker 9: of uh? And we invest as individuals or we would
Speaker 9: have to do through as a brokers or create a
Speaker 9: business work as a business.
Speaker 5: Yeah, and so you can.
Speaker 2: I mean you could do it yourself, right, if you
Speaker 2: open your own broker's account, you could do it yourself.
Speaker 2: That's a good question though, Like a lot of people,
Speaker 2: and this is something that we've learned over the past
Speaker 2: couple years. So it was like, look, we should probably
Speaker 2: maybe start investing from an LLC because as you accumulate
Speaker 2: more assets, you want to protect those assets. And so
Speaker 2: one of the strategies to do is create an LLC
Speaker 2: and trade out of that. And so that's just another
Speaker 2: little tippic that you can use when trading.
Speaker 7: You're saying a lawrence, Yeah, no, it's really good to
Speaker 7: trade out them in LLC. I personally do trade out
Speaker 7: of trade out the inn LLC. It's good on the
Speaker 7: tax side. I like, you can set up trading out
Speaker 7: of LLC really with TDM, ror Trade and most platforms,
Speaker 7: so I think it's beneficial.
Speaker 2: Yeah. And as far as the brokers is, I use
Speaker 2: E Trade to trade for the most part just because
Speaker 2: I like, I like their interface, and when I have
Speaker 2: to do research, I use them. I started with the Ameritrade.
Speaker 2: That one's very very very easy to look at and
Speaker 2: see and do research as well. You can't go wrong
Speaker 2: with either in my opinion, and I also have a fidelity.
Speaker 2: I'm blaming it on shoddy and if you have to pobly,
Speaker 2: you understand why.
Speaker 7: Okay, thank you very much, appreciate you.
Speaker 2: Listen where you're from.
Speaker 9: I'm from Panama, but.
Speaker 2: I love it, love it. Shout everybody, boy Panama.
Speaker 6: Shout the Panama and Panama and shouts all the Panamanians
Speaker 6: in Brooklyn.
Speaker 7: Thank you.
Speaker 2: Have a good night. It is saying, all right, let's
Speaker 2: see what we got. Let's see what we got. I'm
Speaker 2: going down the list here. Let's go to Brandy. Brandy,
Speaker 2: we're coming to you. I'm telling you in advanced Brandy,
Speaker 2: because we're coming to you. I mute yourself. You've been unmuted.
Speaker 2: What's going on, Brandy?
Speaker 4: All right?
Speaker 7: What are you guys doing?
Speaker 2: Brandy?
Speaker 10: Well, actually, I'm using my it's it's it's my wife emails.
Speaker 7: It's it's all good.
Speaker 2: God, she's all good. I love it.
Speaker 4: Yeah.
Speaker 5: Yeah, what's your day?
Speaker 4: Uh?
Speaker 10: My name is David?
Speaker 2: David? All right, David? What's going on?
Speaker 3: Yeah?
Speaker 10: Well, I'm I just joined you guys like I think
Speaker 10: it was like that three weeks ago, and man, man.
Speaker 5: I love you guys.
Speaker 10: Man you you guys, do good do good work.
Speaker 3: I'm telling you, man, appreciate appreciate that. Brad.
Speaker 10: Yeah, I joined the trade. I'm just asking like a
Speaker 10: question right now, because I Giant trade a few a
Speaker 10: few months back, right, a few months back.
Speaker 4: Now.
Speaker 10: It's like I say, like six months or so, and
Speaker 10: when I go and I I I I Giant with
Speaker 10: five ones dollars, okay, and you end up that I
Speaker 10: I earned a lot on that. I earned like, uh,
Speaker 10: probably five hundred dollars because when when I when I
Speaker 10: when I go and check on it, it was out
Speaker 10: of thousand dollars. And what I want to ask you, guys,
Speaker 10: if I want to say, say I want to.
Speaker 2: Like make exit, how do I go outboard doing that?
Speaker 3: How do you exit out it out of your brokerage
Speaker 3: account or your trade trade? So you sell it?
Speaker 5: You bought stock or like what you do stock option?
Speaker 3: I brought them stock.
Speaker 7: I bought them stock.
Speaker 3: Yeah, so you just sell Yeah go to the cell feature.
Speaker 2: Yeah, just sell it.
Speaker 7: I'm really new to this.
Speaker 4: I don't really.
Speaker 2: As I'm gonna help you out since you knew, don't
Speaker 2: even worry about selling it this whole go on to
Speaker 2: what what company was it?
Speaker 8: Uh?
Speaker 2: It was it was game Stop. Uh, game Stop, Lawrence,
Speaker 2: I'll let you, I'll let you take this one. What
Speaker 2: do you think about game Stop?
Speaker 4: Uh?
Speaker 7: I mean so the real technical reason why game Stop
Speaker 7: is up as much is it's a low amount of shares.
Speaker 7: You had a lot of institutions who shortened the stock.
Speaker 7: In my opinion, I would sell game Stop, so I
Speaker 7: would go ahead and take the profits. I know a
Speaker 7: lot of people said it's going to a thousand and
Speaker 7: this and that, but you know, I don't want to
Speaker 7: rain on anybody's parade. But that ain't happening, So yeah,
Speaker 7: I would sell it. I think you said you're in
Speaker 7: the trade, yeah, trade. Yeah, So I would go open
Speaker 7: up and actually hit open order I had to sell.
Speaker 7: And actually, if you want to even call the broker,
Speaker 7: you can actually call customer service, get a broker on
Speaker 7: the line, and the broker can actually that transaction for
Speaker 7: you and go ahead and clear that. So if you
Speaker 7: don't know how to do it, just call the customer service,
Speaker 7: say can I speak a broker? Get the broker on
Speaker 7: the line and tell them and they'll go ahead and
Speaker 7: execute and sell those off. So I will just that's
Speaker 7: what I would say to do. And then in the meantime,
Speaker 7: make sure that you're tapping in here and we'll go
Speaker 7: over you know, order execution and things to really kind
Speaker 7: of help some people out, because I realized the biggest
Speaker 7: thing is a lot of people know what moves they
Speaker 7: want to make, but as far as the actual execution.
Speaker 7: So that's what I'll be here for to help with
Speaker 7: that execution. So make sure you're tapping in here as
Speaker 7: much as Fay.
Speaker 5: David appreciate you, appreciate you. And that's another thing too.
Speaker 2: I'm glad you said that the customer service is really good,
Speaker 2: like really really good. I had some issues with td
Speaker 2: e ver trade d Han me on hold for like
Speaker 2: two hours. Once each trade. They respond either through email
Speaker 2: or like they'll send you a message to text or
Speaker 2: something like that pretty pretty fast, pretty fast. So shout
Speaker 2: to you. All right, let's go to yas me. Shout
Speaker 2: out to uh Brandy and David. Yes, me and were
Speaker 2: coming to you. Tout yourself. You've been immuta, what's going on?
Speaker 4: I can hear you.
Speaker 3: What's going on? Okay, wait, hold on, hold on, you
Speaker 3: got you got the background.
Speaker 5: You gotta turn you gotta turned down a little bit,
Speaker 5: turn down a little bit.
Speaker 3: Sorry.
Speaker 11: So just like uh, I can't get selected that quick.
Speaker 11: So just like the other guy, I'm.
Speaker 12: New to the e y L.
Speaker 11: I appreciate you guys so much and I look forward
Speaker 11: to uh Laurence teaching us because that's exactly what my
Speaker 11: question was, is that I download greeble and coin days
Speaker 11: to start with, but I don't know what to do,
Speaker 11: so I'm gonna be probably.
Speaker 2: That's that's perfect. You in the perfect place.
Speaker 7: Execute, Yeah, are.
Speaker 5: In a perfect I said, you're in a perfect place.
Speaker 2: And so you have an account open already.
Speaker 5: All you chopping up?
Speaker 2: Okay? Perfect?
Speaker 13: There.
Speaker 11: I'm ready to.
Speaker 7: Give rid of Coinbase, I heard, and now.
Speaker 11: I'm like, that's actually where I put most of my money.
Speaker 11: So I'm like, how do I get out of there
Speaker 11: and transfer it to web or someplace else.
Speaker 4: Yeah.
Speaker 7: So one of the biggest things, and definitely I'll definitely
Speaker 7: be bringing this to the university as well too, is
Speaker 7: making sure that you have a ledger. Like I stress
Speaker 7: the importance of leaving no crypto on any platform, Coinbase, crypto,
Speaker 7: dot com. It doesn't matter the name of the platform.
Speaker 7: You need to make sure that you have your own
Speaker 7: cold storage wallet and secure it on there. You don't
Speaker 7: want to leave it on any platform. I've seen year
Speaker 7: after year since I've stepped into the crypto space in
Speaker 7: twenty seventeen, I've seen year after year people getting accounts hacked,
Speaker 7: people taking people's money, and it's not It's just not right.
Speaker 7: So do not buy a ledger from Amazon. Only on
Speaker 7: ledger dot com. And that's something that I'll be bringing
Speaker 7: to the University of making sure that we're properly securing
Speaker 7: our crypto. So yeah, thank you guys, appreciate you as me.
Speaker 5: Have a good night and happy holidays.
Speaker 2: All right, Let's see, let's see, let's see how many
Speaker 2: more do you want to do? Man, let's go to
Speaker 2: Tierra Tira. I'm coming to you. I hope you ready.
Speaker 2: I'm mute yourself. You've been unmuted, Tea. What's going on?
Speaker 4: How y'all doing this?
Speaker 2: Is so exciting to be on here right now with
Speaker 2: you guys.
Speaker 7: I am just want to appreciate everything you do. I've
Speaker 7: been training.
Speaker 12: Options for little bit and I know we talked a
Speaker 12: little bit about the Greeks, but I was wondering if
Speaker 12: we can go into it a little more.
Speaker 2: Yeah, so o, pad's ready, here we go.
Speaker 7: Yeah, so let's let's get let's get into it. So
Speaker 7: all right, so you got delta. So delta is the
Speaker 7: amount per dollar that you make when the option increases.
Speaker 7: Data is the time decay. Data is the amount that
Speaker 7: you pay per day to actually hold that option. So
Speaker 7: the twenty twenty four call options have less data. So
Speaker 7: the thing is is that when you're losing money because
Speaker 7: of data. So this is why when you buy option.
Speaker 7: Let's say you buy a call option on Apple at
Speaker 7: one seventy and let's say Apple goes down to two
Speaker 7: dollars to one sixty eight, and then it comes back
Speaker 7: up to one seventy, some people think that they're going
Speaker 7: to be back to even. That ain't gonna happen. The
Speaker 7: stock is actually going to have to go to potentially
Speaker 7: maybe like one seventy one. One's seventy point five for
Speaker 7: you to actually be back at even now. The thing
Speaker 7: is that the main Greeks that you want to focus
Speaker 7: on is that in the money options actually have higher deltas.
Speaker 7: In the money options have higher deltas and lower data.
Speaker 7: Out the money options have higher thetas and lower deltas.
Speaker 7: So that is one of the main things that you
Speaker 7: want to focus on. Now other Greeks that we want
Speaker 7: to talk about, we want to talk about Vega. Vega
Speaker 7: actually is what makes up implied volatility. Implied volatility is IV,
Speaker 7: So people make money off of options. So for example,
Speaker 7: Troy's options that he had on AMD to seventy five call,
Speaker 7: he made money not just because amb's stock price increased,
Speaker 7: but also the IV increase. What makes up IV, which
Speaker 7: is also equivalent to vega, it's actually demand, what makes
Speaker 7: up demand, demand, open interests. I will say this open
Speaker 7: interest in volume, This is really key. Open interest in
Speaker 7: volume actually makes up demand. So I tell people this,
Speaker 7: lot of times demand will actually bid up and actually
Speaker 7: push your options contracts value up higher. So you have
Speaker 7: open interest, you have volume. These things tie in with vega,
Speaker 7: which is IV. Vega is a Greek. I tell people
Speaker 7: that this is really really important for us to be
Speaker 7: paying attention and watching. Vega is key is a key Greek.
Speaker 7: Delta is a key Greek. Theta is a key Greek.
Speaker 7: And then also you have gamma. So gamma when you
Speaker 7: take a look, gamma is what actually influences the change
Speaker 7: of price of delta. So gamma actually influences that. So
Speaker 7: when you hear people say, oh, a gamma squeeze is
Speaker 7: about to happen, this is where I say a lot
Speaker 7: of times, gamma squeeze comes when stock prices push up
Speaker 7: and a gamma squeeze and push that delta actually higher.
Speaker 7: So this is key when paying attention to the Greeks.
Speaker 7: The quickest way to really understand the Greeks is when
Speaker 7: you buy in the money options, you actually have less data.
Speaker 7: And so where like, who actually makes money off of data?
Speaker 7: People who sell options. So this is key. I'm gonna
Speaker 7: give this gym away. People who have more than one
Speaker 7: hundred shares of any company can actually sell options and
Speaker 7: they make money off of data. So when you're losing
Speaker 7: value because of data, understand that the seller is actually
Speaker 7: making money. Which is why what I tell people when
Speaker 7: options expire worthless, there was a winner. The winner was
Speaker 7: the seller. So option contracts when you buy are actually
Speaker 7: theata negative. But actually when you're a seller of options,
Speaker 7: there theta positive. So what does that mean? So theta
Speaker 7: positive means that you actually gain value from actually selling
Speaker 7: options when the strike price when you actually go further away.
Speaker 7: So this is kind of like giving you an idea
Speaker 7: of the Greeks. We're going to talk about in the
Speaker 7: money and out the money options a lot here at EYL.
Speaker 2: So yeah, yeah, like cover calls and spreads and things
Speaker 2: like that. That's more of an advanced conversation. But yeah,
Speaker 2: I mean he giving you the game already.
Speaker 3: There you have it.
Speaker 6: Ladies and gentlemen, you can tell you knows this stuff
Speaker 6: because that stuff that you know, he.
Speaker 3: Just thank you to off the top of his head.
Speaker 6: It's not like he's like reading the script, so you know,
Speaker 6: going through all of those Greeks and giving detailed explanations.
Speaker 6: Got to really study this stuff, so, you know, obviously
Speaker 6: dedicated a lot of time to learning the language of investing.
Speaker 6: Very very important. So let's get one more question before
Speaker 6: we before we rather do it.
Speaker 2: Like he's really twenty two, No, he's he's really twenty two. Yeah,
Speaker 2: he's really twenty two. Let's go to let's do this.
Speaker 2: Let's go to Wesley. Wesley, were coming to you. Mute yourself,
Speaker 2: you've been unmuted. What's going on? No fridg breaks. It's
Speaker 2: going on at ten o'clock hour in New York, No
Speaker 2: Fridz breaks.
Speaker 4: Yeah, that's it going, guys, what's.
Speaker 3: Going It's going on?
Speaker 4: Wesley's going. You know, I definitely appreciate y'all. You know,
Speaker 4: I caught the Black Friday sale, so I'm fairly new.
Speaker 12: I'm trying to trying to catch up. You know, definitely
Speaker 12: what the breaker guys got going. So my question is
Speaker 12: with the clash, Lawrence is going to be doing, you know,
Speaker 12: is he going to be like starting uh, like from
Speaker 12: the beginning as far as like I know, I know
Speaker 12: you guys are doing like stock after today, which is
Speaker 12: more like advanced people have been people that has been trading.
Speaker 4: But are you guys looking to do.
Speaker 12: Like like the like the beginning part of it, like
Speaker 12: you know, like stocks, and then you know, moving on
Speaker 12: up like as each class goes along like that.
Speaker 2: I'll take the first part and then I'll let Lawrence answer.
Speaker 2: So part part of it is that we have a club.
Speaker 2: So we have an investment club, a stock club, and
Speaker 2: so he's part of that as well. And so it's
Speaker 2: a whole community of people that are learning on the fly.
Speaker 2: And it depends on what stage you're at. And there's
Speaker 2: a lot of people who at beginning stage, like you
Speaker 2: said you are, so it becomes a community inside that
Speaker 2: community that people giving information and helping you along the way.
Speaker 2: Obviously Lawrence is going to be there as well. I'll
Speaker 2: let him talk about what he'll be doing. But you
Speaker 2: got to remember the community aspect of it too. Somebody
Speaker 2: is sitting in front of their computer right now, sitting
Speaker 2: in front of the TV right now, with the same
Speaker 2: thought process, like I'm the beginning, and so when like
Speaker 2: minded people come together as as an individual as a
Speaker 2: collective community, it's it's a very special thing here.
Speaker 6: But yeah, but I'm sure it's gonna be different classes too,
Speaker 6: so you know, it might be a beginning it's definitely
Speaker 6: probably gonna be a beginner's class, like you know, a
Speaker 6: beginner's class, a charting one O one class like you know,
Speaker 6: because everybody's at different stages, so you know, a mix
Speaker 6: a mix of you know, events and then also beginning
Speaker 6: level as well.
Speaker 12: Yeah, because I say that because like because right now
Speaker 12: I mostly have I'm mostly invested in crypto and now
Speaker 12: I'm looking to you know, step into like doing stocks
Speaker 12: as well, because you're not just been taking a lot
Speaker 12: of notes, especially from the last market Monday class, you know,
Speaker 12: with like with the ETFs and the stocks that you know,
Speaker 12: you guys are heavily invested in. So I definitely got
Speaker 12: my notes and you know, looking to you know, like
Speaker 12: keep like keep up, keep up with the train, you
Speaker 12: know what I'm saying, you know, along along with everything else,
Speaker 12: you know, because I do have kids, and I'm looking
Speaker 12: to make sure that their future is definitely looking bright,
Speaker 12: you know, as I'm making, you know, these these moves,
Speaker 12: and I'll be able to teach them along the way,
Speaker 12: so you know.
Speaker 3: So that's that's why Jany just text me.
Speaker 6: She said, Wednesday's classes will be for beginners Tesdays.
Speaker 5: Yeah, Wednesday, Wednesdays one on one.
Speaker 4: Wednesdays, all right, cool?
Speaker 12: Oh yeah, and last thing, you know, I'm definitely from
Speaker 12: New York. You know, I've met you guys back in
Speaker 12: like twenty nineteen. You know, shot this b from Dykeman
Speaker 12: when you guys pulled up. I definitely filmed, like the
Speaker 12: interview when you guys pulled up, I wasn't I wasn't
Speaker 12: too sure like what you guys were up but doing
Speaker 12: because like I filmed for Dykman as far as like
Speaker 12: basketball and then it's be pulled me and says it
Speaker 12: like yo, you know, like She's like, yo, commit flash,
Speaker 12: I got early leads and early leads. I'm like, who
Speaker 12: are these guys. She's like, oh, you know these guys
Speaker 12: doing the financial literacy podcast d D. I don't know
Speaker 12: what she was really talking about out, but now I'm
Speaker 12: like fully investing.
Speaker 4: I'm like, damn, Like that's that's crazy.
Speaker 12: So you know, I definitely should you guys here, you know,
Speaker 12: and I appreciate y'all man for appreciate you.
Speaker 6: Appreciate y'all, appreciate you bro and shout out to Dykeman
Speaker 6: Fact and we actually got some some stuff that we're
Speaker 6: working on with Dykeman. So yeah, yeah, it's gonna be
Speaker 6: gonna be a good summer.
Speaker 5: Laurens, we didn't give you a chance to answer ahead.
Speaker 7: Oh no, you got Janet said it. So really Monday
Speaker 7: is I'm really making it? Really, I'll probably say more advanced,
Speaker 7: and then on Wednesday, definitely for the beginners investing one
Speaker 7: on one while the market is open, definitely a little
Speaker 7: bit more advanced, showing you guys the charts, showing you
Speaker 7: pretty much like you know, the things to watch during
Speaker 7: the day while the markets are open, and really going
Speaker 7: through some procedures out of some of the things that
Speaker 7: I keep throughout the day, and then also investing one
Speaker 7: on one the classes to get you started from the beginning.
Speaker 7: So we'll be reading that book, charting a technical analysis,
Speaker 7: We'll be going through a lot of things. So definite.
Speaker 3: There you have it, Lady.
Speaker 6: Just appreciate you. You got you know, Lawrence, what is
Speaker 6: my bad bro? What is what's your Instagram? Because I'm
Speaker 6: sure a lot of people want to follow your instagram.
Speaker 7: Yeah, so it's mister Lawrence dot E. So m R
Speaker 7: L A W R E n C E dot e.
Speaker 7: That is my only page. My only page, So any
Speaker 7: other phase has made Like you know, these scammers are active.
Speaker 7: So I think right now I have like seventeen thousand,
Speaker 7: one hundred followers. So that's my page there. The last
Speaker 7: post was the fly for tonight, so definitely that is
Speaker 7: my page.
Speaker 6: No, I appreciate you so much, bro, thank you for
Speaker 6: doing this and and thank you for you know, being
Speaker 6: a light for the community, and thank you for joining
Speaker 6: eyl University.
Speaker 3: Something that I'm looking forward to.
Speaker 6: Like I said, we already had the investment arm, but
Speaker 6: you know, just adding more to it. That's you always
Speaker 6: we always investing in EYO university and just adding more
Speaker 6: to it and just trying to make it, you know,
Speaker 6: as prominent as possible. So it's definitely gonna be something
Speaker 6: that's gonna be beneficial to all the earnest. Once again, if
Speaker 6: get interested, all the classific university get archived, they all
Speaker 6: get safe to the website real estate credit financial planning
Speaker 6: called book Club, Movie Club, Facebook group. It's really just
Speaker 6: a dope vibe and of course of course investing. So
Speaker 6: Lawrence will be doing the Monday trading class and then
Speaker 6: the Wednesday beginning class.
Speaker 3: So it's just so much stuff going on right now.
Speaker 3: Crypto forgot about Crypto.
Speaker 5: They were telling Wesday joined the Crypto Club is on
Speaker 5: the chain.
Speaker 6: We're in the age of information right now, so it's
Speaker 6: important that you educate yourself.
Speaker 3: It's extremely, extremely important.
Speaker 6: So once again, if you're going, if you want to
Speaker 6: do that, we gotta sell the last sale of the year,
Speaker 6: sixty forty eight hours sale and yeah, that's that's good
Speaker 6: for the whole year from the time that you get
Speaker 6: it for twelve months and then it renews at the
Speaker 6: twelve months. So once again, brother Lawrence, thank you so much.
Speaker 6: Ey l Lawrence, thank you so much. Anything that's anything
Speaker 6: that you would like to say.
Speaker 7: Ah, man, I mean just honestly, man, it's just really
Speaker 7: a surreal moment. This is like you know when they
Speaker 7: say were like kind of like walking to your purpose,
Speaker 7: Like this is everything. This means a lot to me
Speaker 7: just being a part of community like this. So, uh,
Speaker 7: you know, I'm excited. I'm ready to take on the responsibility.
Speaker 7: And like I said, I'm excited. I'm looking forward to
Speaker 7: January third, kicking things off of the Bang twenty twenty two,
Speaker 7: a lot of big things coming. And just continue to
Speaker 7: grind and focus. Guys, all you are is just like
Speaker 7: one step away from literally changing your life. And that's
Speaker 7: just the way I look at everything. So continue to
Speaker 7: stay focused, continue to perseverere and focus about being focused,
Speaker 7: like being around positive energy, positive mindsets, and just continue
Speaker 7: to rise above me.
Speaker 2: Were in this.
Speaker 7: So that's it.
Speaker 3: That's it.
Speaker 6: And yeah, the price of the renewal is the same
Speaker 6: when you join, so it's better to get it earlier
Speaker 6: because you know, the price goes like a stock.
Speaker 3: But once you locked in, you locked in for life.
Speaker 6: And I want to just wish everybody a happy holidays.
Speaker 6: Whatever you celebrate, If you celebrate anything, Kwanzah, Christmas, what
Speaker 6: other holidays are there? Honikahash, New Year's, Happy New Years,
Speaker 6: all of that stuff. Man, you know, just you know,
Speaker 6: have have a safe time. Be safe out here. Corona
Speaker 6: is definitely running rampant in the streets right now, so
Speaker 6: be safe. And yeah, the last thing that we'll do
Speaker 6: for the year is tomorrow with our boy t. I
Speaker 6: shout out to tip uh and no, Lawrence, you got
Speaker 6: to chop it out with him yesterday, so shout out, shout.
Speaker 3: Out the tip Man. Good, good dude.
Speaker 6: So check out at Sets Overliabilities on Revolts YouTube channel
Speaker 6: tomorrow at five o'clock. That's a dope episode, dope conversation
Speaker 6: with my boy t I. And make sure you check
Speaker 6: out O our episode of E y L that's out
Speaker 6: right now for this week. It's just me and Troy
Speaker 6: Market mondays. Of course, make sure you binge watch Market
Speaker 6: Monday shouts I make sure you watch this replay. This
Speaker 6: will also be on podcast outlets Apple, Spotify.
Speaker 5: Ah.
Speaker 6: So yeah, man, we got we got a lot of
Speaker 6: stuff planned. Twenty twenty two is around the corner, so
Speaker 6: the year is not over. It's still some time. You know,
Speaker 6: you're gonna grind. You gotta grind to the end. Grind
Speaker 6: to the end. Will also take some time to reflect,
Speaker 6: take some time to just you know, plan your vision
Speaker 6: board for for the next year, not just finances, your
Speaker 6: vision board for your health, your vision board for your family,
Speaker 6: your vision your vision board for your you know, your spirituality.
Speaker 6: Everything is very important. So you know, this is this
Speaker 6: is a perfect that just you know, take a moment,
Speaker 6: look at what happened this year. Positive, negative, reevaluate the situation,
Speaker 6: move forward, stay positive, Stay in the light, Stay in
Speaker 6: the light.
Speaker 3: Stay in the light.
Speaker 2: Most of I feel amazing.
Speaker 3: Stay away from negativity, Stay away from negative.
Speaker 2: Don't let it into your animatrid.
Speaker 6: It's extremely important to stay away from negative energy.
Speaker 3: Yeah. Man, let's just continue to prosper.
Speaker 2: Yeah, let's grow, let's build, let's achieve.
Speaker 3: Oh yeah, shout out to Wall Street Trapper.
Speaker 6: He's gonna be on Ellen tomorrow, right tomorrow, So make
Speaker 6: sure you check that out.
Speaker 3: I don't know what you know? Does that come on NBC?
Speaker 6: NBC check out Ellen tomorrow? Uh with Wall Street Trapper.
Speaker 6: Salute to him. That's gonna be that's gonna be fire. Yeah,
Speaker 6: it looks like us now.
Speaker 3: Facts facts, all right, Well they have it, ladies and gentlemen.
Speaker 2: Holiday season, y'all. In the season that doesn't just mean
Speaker 2: give gifts, give time, reach out, call somebody, one conversation,
Speaker 2: one text message can change the trajectory of someone's life.
Speaker 2: Like I really mean that, because we've seen it happen
Speaker 2: over and over again. So please I encourage you to
Speaker 2: do that and and again. Be safe, Be safe. I
Speaker 2: know a lot of people I have caught corona over
Speaker 2: the past couple of weeks, So prayers up to them
Speaker 2: and their families. Uh, and love is love, man. We
Speaker 2: will see y'all. We will see y'all. We're gonna be safe.
Speaker 4: Number one.
Speaker 6: And this this is the last thing that we're gonna
Speaker 6: do for the year. So drop your cash apps. Y'all
Speaker 6: stayed with us for almost two hours, for longer than
Speaker 6: two hours.
Speaker 3: Yeah, we're gonna do.
Speaker 6: It's the last thing, since this is the last live
Speaker 6: we're gonna have of a year, drop your cash apps
Speaker 6: if you're interested in that. All right, I'm a Oh
Speaker 6: YouTube doesn't work for cash apps?
Speaker 2: Right? Oh damn? So just to earn us, I guess
Speaker 2: so damn. I think they blocked it on YouTube, right,
Speaker 2: they said too many. You know what if they I
Speaker 2: think if they what they was the ones putting like
Speaker 2: super chats and they was putting their cash ups in there.
Speaker 3: Oh no, I see I see.
Speaker 2: Yeah, Jay, you're on YouTube. Take some some flicks so
Speaker 2: we can catch some people. I'm gonna take a picture
Speaker 2: of this right here so I can catch them with
Speaker 2: the earners is moving so far? All right?
Speaker 4: Now?
Speaker 6: They all right, So we'll be sending out some some
Speaker 6: holiday tightings.
Speaker 5: Tights like.
Speaker 3: Mm hmm, hold you over.
Speaker 2: We gotta send it out now. You got if you're shopping,
Speaker 2: you got like another day, two days, get it done.
Speaker 6: Yeah, all right, yeah, we got it. I see I
Speaker 6: see it on YouTube. So yeah, we're gonna pick some
Speaker 6: people from YouTube, a couple of earnest All right, ladies
Speaker 6: and gentlemen. So it's been a pleasure. Be safe, Lawrence,
Speaker 6: Thank you, dog, appreciate you. Safety all right, y'all.
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