The Outlier Trading Podcast

Options Trading Introduction | Outlier Options Trading Bootcamp Ep1

Dec 7, 2023
In this episode, guest_name_1 and guest_name_2 provide an introduction to options trading, explaining rights and obligations, neutralizing open positions, and the belief that most options expire worthless. They discuss calculating possible loss, scaling in trading, understanding intrinsic and extrinsic value, volatility's impact on pricing, and the importance of options theory and Greek info.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
ANECDOTE

Funny Options Trading Anecdote

  • Erik shared a funny story where his partner used an options term creatively in a personal moment.
  • It highlighted how his passion for options trading permeated his life and relationships.
INSIGHT

Option Buyer vs Seller Rights

  • The buyer of an option has the right but not the obligation; the seller has the obligation if exercised.
  • This fundamental distinction shapes trading strategies and risk management in options.
INSIGHT

Why Options Close Early Often

  • Most options are closed out before expiration to capture remaining time value and avoid stock assignment.
  • Exercising early is rare because it sacrifices extrinsic value but happens around dividends or deep in-the-money.
Get the Snipd Podcast app to discover more snips from this episode
Get the app