Christine's Heart; 1st & 15th Prospera LLC

A short walkthrough of OptionStrat's flow platform. Try OptionStrat Flow at: https://optionstrat.com/flow Also available on mobile: iOS: https://apps.apple.com/us/app/optionstrat-options-toolkit/id1541714905 Android: https://play.google.com/store/apps/details?id=com.optionstrat.app

A put option pays out when the stock price falls below the strike price at expiration. • Payout: The option pays the difference between the strike price and the stock price, minus the premium paid (which is the cost of the option when you buy it). Example: • Strike Price = $100 • Stock Price at Expiration = $80 • Payout = ($100 - $80) - Premium Paid • Payout when stock price is lower than the strike price: If the stock price is above the strike price, the put option expires worthless. • The premium (the cost of the option when you buy it) is the maximum loss. • Implied volatility (explained in the Option Q&A) is crucial in options pricing. Higher volatility increases premiums, making options more expensive. • Volatility vs. Stock Movement: If the stock price goes up but volatility drops, the value of a call option might decrease. This is because lower volatility limits the potential for larger price moves, reducing the upside. • Tip: Sometimes it’s better to wait a few hours after market open when volatility is lower, as this can lead to cheaper premiums and more potential upside for calls. Like, Comment and Subscribe if you like this format (and can get used to the 🇫🇷 accent). I can add with 3 videos a day if this format works for you... www.StocksToBuyNow.ai for more

What is a Call Option? A call option pays out when the stock price exceeds the strike price on Maturity Date. • Payout: The option pays the difference between the stock price and the strike price, minus the premium paid. Example: • Strike Price = $100 • Stock Price at Expiration = $128 • Payout = $128 - $100 - Premium Paid • Payout when stock price is higher than strike price: If the stock price is below the strike price, the call option expires worthless. • The premium (the cost of the option when you buy it) is the maximum loss. • Implied volatility (explained in the Option Q&A in the App - video to come) is crucial in options pricing. Higher volatility increases premiums, making options more expensive. • Volatility vs. Stock Movement: If the stock price goes up but volatility drops, the value of a call option might decrease. This is because lower volatility limits the potential for larger price moves, reducing the upside. • Tip: Sometimes it’s better to wait a few hours after market open when volatility is lower, as this can lead to cheaper premiums and more potential upside for calls. Like, Comment and Subscribe if you like this format (and can get used to the 🇫🇷 accent). I can add with 3 videos a day if this format works for you... www.StocksToBuyNow.ai for more

Delta: A Key Metric for Options Trading Delta measures the sensitivity of an option’s price to changes in the price of the underlying asset. It’s expressed as a number between -1 and 1 (or sometimes as a percentage, -100% to 100%). Here’s what it tells you: • For Call Options: Delta is positive, ranging from 0 to 1. A delta of 0.50 means the option price is expected to increase by $0.50 for every $1 increase in the underlying asset’s price. • For Put Options: Delta is negative, ranging from 0 to -1. A delta of -0.30 means the option price is expected to decrease by $0.30 for every $1 increase in the underlying asset. Why Delta Matters: 1. Directional Sensitivity: Delta shows how much an option’s value will change based on the stock’s price movement. 2. Probability Indicator: For at-the-money options, delta approximates the probability of the option finishing in the money at expiration. 3. Hedging Tool: Traders use delta to hedge positions. For example, owning a call with a delta of 0.50 means holding that option is equivalent to holding 50 shares of the stock. Examples: • A deep in-the-money call may have a delta close to 1, reflecting a strong likelihood of it being profitable at expiration. • A deep out-of-the-money put may have a delta near -0.01, indicating minimal sensitivity to stock price changes. Got questions, remarks, or suggestions? Leave them in the comments below. Like & Subscribe for more videos like this. 👉 www.StocksToBuyNow.ai 🚀

Are Options and Leverage the Same? In this video, we break down the differences between options and leverage in trading: • Options: These financial instruments give you the right to buy or sell a stock at a specific price, and your maximum loss is capped at the premium you pay. • Leverage: A tool that amplifies your exposure to an asset, increasing both potential gains and losses beyond your initial investment. While options provide leverage due to their lower upfront cost compared to the underlying asset, the degree of leverage depends on factors such as: • The strike price relative to the stock price • The time to maturity of the option • Market volatility We’ll clarify the nuances of how options provide leverage and whether they should be considered the same. Like, Comment, and Subscribe for more trading insights! 👉 www.StocksToBuyNow.ai 🚀

Understanding the Order Book: Bid, Ask, and the Difference Between Limit and Market Orders In this video, we’ll take a closer look at the order book, an essential tool for traders, and explain key concepts such as bid, ask, and the difference between limit and market orders. • Order Book: The order book is a real-time list of buy and sell orders for a specific stock or asset. It shows the prices and quantities at which traders are willing to buy and sell. The order book provides insights into market sentiment and liquidity. • Bid Price: This is the highest price a buyer is willing to pay for an asset. The bid represents the demand side of the market. • Ask Price: The ask is the lowest price a seller is willing to accept for an asset. It represents the supply side of the market. • Bid-Ask Spread: The difference between the bid and ask prices is called the bid-ask spread. A narrower spread typically indicates higher liquidity and a more efficient market, while a wider spread may suggest lower liquidity. • Market Order: A market order is an instruction to buy or sell an asset immediately at the best available price. Market orders ensure that the trade will be executed right away, but the price at which the trade is executed can vary depending on the order book’s liquidity. • Limit Order: A limit order is an order to buy or sell an asset at a specific price or better. With a limit order, you can control the price at which you are willing to trade, but there’s no guarantee that the order will be executed unless the market reaches your specified price. In this video, we’ll guide you through how to read the order book, understand the bid and ask prices, and use limit and market orders effectively to enhance your trading strategies. Got questions, remarks, or suggestions? Leave them in the comments below. Like & Subscribe for more videos like this. 👉 www.StocksToBuyNow.ai 🚀

Delta and Gamma for Put Options: Exploring Similarities and Differences When analyzing put options, Delta and Gamma are essential metrics that provide insights into how the option price behaves as the underlying stock price changes. While they are interrelated, each serves a unique purpose. Delta for Put Options Delta measures how much the price of a put option changes with a $1 change in the underlying stock price. For puts, Delta is always negative, as the value of a put increases when the stock price decreases. For example: • A Delta of -0.40 means the option price decreases by $0.40 for every $1 increase in the stock price. Delta also indicates the probability of a put finishing in the money. At-the-money puts typically have a Delta close to -0.50, while deep in-the-money puts approach -1, and out-of-the-money puts near 0. Gamma for Put Options Gamma measures how much Delta changes as the stock price moves. It reflects the acceleration of price sensitivity, showing how quickly the Delta of a put adjusts to fluctuations in the underlying asset. For example: • A Gamma of 0.05 means Delta will shift by 0.05 for every $1 move in the stock price. Unlike Delta, Gamma is always positive, as it describes the rate of change in sensitivity, regardless of whether the stock price rises or falls. How Delta and Gamma Are Similar Both Delta and Gamma gauge an option’s sensitivity to stock price changes. They are highest for at-the-money puts and decrease for deep in-the-money or out-of-the-money options. Together, they provide a detailed view of how a put option reacts to the stock price and how its sensitivity evolves over time. Key Differences Between Delta and Gamma While Delta tells you the immediate price change of a put option for a $1 move in the stock, Gamma focuses on how Delta itself changes with the stock price. Delta provides a straightforward directional insight, whereas Gamma explains the speed of that directional change. For instance, Delta may predict the price drop in a put as the stock price rises, while Gamma shows how this sensitivity lessens as the stock price moves further away from the strike price. Practical Example If a stock price increases by $1: • A put with Delta = -0.50 and Gamma = 0.10 will see Delta shift from -0.50 to -0.40. This means the initial drop in the option price slows down as Delta adjusts due to Gamma. Understanding both Delta and Gamma helps traders anticipate price changes more accurately and manage risks in a volatile market. Got questions or suggestions? Share them in the comments! Like & Subscribe for more tips. 👉 www.StocksToBuyNow.ai 🚀