The Real C

[The Real C @taking_a_fiat]

I told you!! Up only 🚀

[The Real C @taking_a_fiat]

Bottom in for now. No need for paid indicators when you have Cramer

[The Real C @taking_a_fiat]

@nftcarrot @wizardofsoho Plus volume is actually decreasing. Not a good sign. So I would say it's actually a failure, 2000 Walmarts for the price to only return to where it sold off from last time.

[TheBreadmaker @thebreadmakerx]

I’ll be working on a good bit of trading content via YouTube over the coming weeks.

Trading analysis, options education, trading strategies, tips etc.

Appreciate you subscribing if you are interested in seeing more!

https://t.co/7XeJqRXA46

[TheBreadmaker @thebreadmakerx]

What is Option Trading?

Options trading is quite complex. Even the basics of it can be challenging to wrap your head around.

There is a ton of terminology, concepts and strategies when trading options.

I'm going to try and break down the basics of it and provide real world analogies to help make it easier to comprehend and fully understand what an option contract actually is.

Let's start with what exactly is an Option contract?

I'll start with an analogy that most everyone is probably familiar with. Purchasing a ticket to a concert.

An option contract is similar to an agreement you make with your well-connected friend about a concert ticket.

The Agreement (Option Contract):
You and your friend create a written agreement where you pay a small fee (called the premium) to your friend.

In return, your friend gives you the right to buy a ticket (or sell it, if it's a put option) at a set price (the strike price) on or before a specific date (the expiration date).

Similar to paying a fee to be on a waitlist or have the ability to buy a product.

Terms of the Contract:
The agreement specifies whether you have the right to buy (call option) or sell (put option) the ticket, the set price at which you can do so, and the date by which you must decide. It's a binding contract, so both parties must adhere to these terms.

Exercising or Not:
As the concert date nears, you have the choice to exercise your right according to the agreement or let it expire.

If you exercise the right, your friend must honor the agreement and sell you the ticket at the set price.

If you decide not to go to the concert, you simply let the contract expire, losing just the small fee you paid.

Transferring the Right:
In some situations, you might even be able to sell this agreement to someone else who wants to go to the concert.

That person would then step into your shoes and have the right to buy or sell the ticket under the same terms.

This part is common for people that trade options, as they want to pay the "small premium" for the rights to the contract, but then maybe hype for the concert goes up, so therefore, they can now charge a higher premium for the rights to the concert to someone else.

So, an option contract in traditional finance is a formal agreement that gives the holder the right (but not the obligation) to buy or sell an underlying asset (like a stock) at a specific price on or before a specific date.

The contract includes all the terms, such as the premium, the strike price, and the expiration date, and can be traded in the options market, much like you could theoretically transfer your concert ticket agreement to someone else.

Now, let's go over the actual buying/selling of option contracts in relation to a concert ticket.

Buying an Option (Call Option):
Imagine you hear about a concert happening in a few months featuring your favorite band.

You think the concert might sell out, so you pay a small fee to a friend $3.00 (who has connections) to have the right to buy a ticket at $100 before August 31st.

If you decide to buy the ticket later, you pay the agreed-upon price, regardless of whether the ticket's price has gone up in the meantime.

Exercising the Option:
If the band becomes more popular and the concert sells out, the tickets' price on the market will likely increase.

You still have the right to buy the ticket at $100, so you decide to exercise your option, and you save money compared to the current market price $200.

Trading the Option:
If the concert becomes more popular closer to the date of the show, you have the option of selling the premium or right to the concert ticket at a higher price.

Maybe you don't plan to go the concert, so you sell the premium that you paid $3.00, to someone else for $5.00 and make 60%. This is option trading.

Letting the Option Expire:
Alternatively, if the band's popularity wanes or you decide not to go to the concert, you can simply let your option expire.

In this case, you lose only the small fee ($3.00) you paid for the right to buy the ticket, but you're not obligated to actually buy it.

Selling the Option (Put Option):
Now, let's say you already have a ticket to the concert for $100, but you're worried the band's popularity might drop, causing the ticket's value to decrease.

You could pay someone a fee ($3.00) for the right to sell your ticket at $100 before August 31st.

If the ticket price drops, you can exercise your option to sell at the agreed-upon price, protecting yourself from a bigger loss.

So if ticket prices drop to $75, you paid a fee of $3.00 to someone else, and they now have to buy your ticket from you at the agreed upon price of $100. This protects you from losing $25 on your ticket value.

Options trading works in a similar way.

You're buying or selling the right (but not the obligation) to purchase or sell an underlying asset (like a stock) at a set price before a specific date.

Depending on how the market moves, you can decide to exercise the option, trade the option or let it expire.

Like the concert ticket scenario, there's a strategic element in predicting future trends and using options to your advantage.

This is just the beginning of what options trading is about. You need to understand this foundational level so that once we get into further concepts, you understand some of the lingo and what an option contract actually is.

I did my best to break this down into a easier to understand concept, but like I mentioned at the beginning of this post, options trading is quite complex, so if you have any questions or didn't quite understand something, drop me a line in the comments and I'll do my best to help piece it together for you.

This content takes me a while to create and put together. So please like and retweet to spread it, this also helps me understand what kind of value you feel this brings and keeps me motivated to continue doing it.

As always, thanks for the support and hope you learned a thing or two. More to come so be sure to follow and turn on post notifications for more!

[The Real C @taking_a_fiat]

@TheBreadMakerr Let's go! Excited to learn this!

[TheBreadmaker @thebreadmakerx]

Just spent a good few hours on a pretty lengthy "What is Options Trading" post.

I'll release it here in a few hours. Tried to make it relatable and easy to understand.

This is just the beginning of the Options journey, excited to share and grow alongside the community!

[The Real C @taking_a_fiat]

@TheBreadMakerr what could also be cool is for each video released, there was also a relevant thread linked.

[The Real C @taking_a_fiat]

@TheBreadMakerr And you change strategy according to direction?

[The Real C @taking_a_fiat]

@TheBreadMakerr When do we start sir?

[The Real C @taking_a_fiat]

@KimDotcom @elonmusk @ElonMuskAOC @WallStreetSilv And the people who will be reduced, clap in the background! You can't even make this shit up! 😂😂

[The Real C @taking_a_fiat]

@VeritasJustin @RorSyns Real! been like that for over a month now. It will be interesting to see how long they stay up.

[The Real C @taking_a_fiat]

Embrace the struggle. As the most likely outcome is failure.

[The Real C @taking_a_fiat]

If she is a 10 with makeup, and barely a 5 without. Does that not make her a rug pull?

[The Real C @taking_a_fiat]

@gatesfoundation @BillGates If this world is ever lucky enough to get rid of you, and your cronies. This world will be a far better place.

[The Real C @taking_a_fiat]

@gatesfoundation @BillGates @BillGates I find it very hard to see, that all this philanthropy you are doing is coming from a good place. You have all mainstream media in your back pocket, and continue to forcefully take people's farm land. How could you possibly be coming from a good place. Most evil ever!

[The Real C @taking_a_fiat]

@wizardofsoho @tropoFarmer Still waiting for the bet