Options & Derivatives
Options and derivatives are complex financial instruments used in various trading and investment strategies. An option gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time frame. Derivatives, including futures, forwards, swaps, and options, derive their value from the performance of an underlying entity like an asset, index, or interest rate. These instruments are used for hedging against price fluctuations in an asset, thereby reducing risk, or for speculative purposes to profit from anticipated price movements. They play a crucial role in financial markets by providing additional liquidity, enabling price discovery, and offering mechanisms for risk management.
Most People Think About Options Trading Wrong
Most people misunderstand the realities of options trading, and this video breaks down why. We explore how bid-ask spreads, commissions, and the zero-sum nature of the market can impact your results. You’ll also see a comparison between options and stocks, along with a realistic look at your chances of profiting. If you’re new to options or questioning the hype, this video gives you a grounded perspective on options trading strategies.
📈 *Checkout The Options Broker I Showed In This Video:* https://ryano.finance/ibkr-options
🎓 *This Video Is Part of My Full Options Trading Course:*
👉 https://ryano.finance/options-course
Chapters:
0:00 – Options Trading Content on the Internet
0:49 – The Zero-Sum Nature of Options
1:26 – Bid-Ask Spreads and Commissions
3:04 – Options vs. Stocks
3:34 – How Likely Are You to Profit from Options Trading?
4:56 – Are Options Trades Ever Worth It?
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.
Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit interactivebrokers.com.
Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by clicking the link below. Multiple leg strategies, including spreads, will incur multiple transaction costs. theocc.com/company-information/documents-and-archives/options-disclosure-document
Any trading symbols, entities or investment products displayed or named in this video are for illustrative purposes only and are not intended to portray recommendations.
IBKR Options Trading Permissions Explained | Step-by-Step Interactive Brokers Guide
Learn how to navigate IBKR options trading permissions and get approved for the right trading level. In this step-by-step Interactive Brokers tutorial, we cover what determines your options trading tier and how to update your financial info and experience. You’ll also learn how to request a higher options permission level directly within the IBKR platform. Perfect for anyone looking to unlock more advanced options trading strategies on Interactive Brokers.
📈 *See The Options Permissions Tiers In IBKR Here:* https://ryano.finance/ibkr-options
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
Chapters:
0:00 – IBKR Options Trading Permissions Overview
0:45 – What Determines Your Options Trading Level
1:34 – How to Set Your Financial Info & Experience in IBKR
3:12 – How to Request a Higher Options Permission Tier on IBKR
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.
Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit interactivebrokers.com.
Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by clicking the link below. Multiple leg strategies, including spreads, will incur multiple transaction costs. theocc.com/company-information/documents-and-archives/options-disclosure-document
Any trading symbols, entities or investment products displayed or named in this podcast are for illustrative purposes only and are not intended to portray recommendations.
Margin Trading Explained | Risks, Benefits & How It Works
In this video, we break down margin trading, how it works, and the key risks and benefits every trader should know. You’ll learn what it means to trade with borrowed money, the potential for amplified gains, and the dangers of margin calls. We also explain the margin requirements set by brokers and how to use leverage responsibly. Whether you’re a beginner or just exploring new strategies, this is your complete guide to trading on margin.
📊 *Margin Rate Calculator →* https://ryano.finance/ibkr-margin
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
Chapters
0:00 What is Margin Trading?
1:33 Risk of Margin Trading
4:46 What are the Benefits of Margin Trading?
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.
Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit interactivebrokers.com.
Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by clicking the link below. Multiple leg strategies, including spreads, will incur multiple transaction costs. theocc.com/company-information/documents-and-archives/options-disclosure-document
Any trading symbols, entities or investment products displayed or named in this podcast are for illustrative purposes only and are not intended to portray recommendations.
Margin Trading:
Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment. For additional information regarding margin loan rates, see ibkr.com/interest
Order Types Explained: Market, Limit & Stop Orders for Beginners
In this video, we explain the three main order types: market orders, limit orders, and stop orders, so you know exactly when and how to use each. You’ll learn the pros and cons of each order type and how they work in a brokerage trading platform. Whether you’re a beginner or just need a refresher, this guide covers everything from placing a market order for instant execution to setting a stop order for risk management. Mastering these order types is essential for smarter, more effective trading when you place buy or sell orders.
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
Chapters
0:00 – Intro to Market, Limit and Stop Orders
1:00 – What Is a Market Order?
1:52 – What Is a Limit Order?
3:31 – What Is a Stop Order?
5:11 – Using Different Order Types In a Brokerage
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.
Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit interactivebrokers.com.
Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by clicking the link below. Multiple leg strategies, including spreads, will incur multiple transaction costs. theocc.com/company-information/documents-and-archives/options-disclosure-document
Any trading symbols, entities or investment products displayed or named in this podcast are for illustrative purposes only and are not intended to portray recommendations.
Any discussion or mention of an ETF is not to be construed as a recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
What Is the Bid-Ask Spread? | Order Book & Trading Impact
Learn what the bid-ask spread is and how it impacts your trading decisions. This video breaks down bid vs ask prices, the order book, and the real-world factors that drive spreads in financial markets. We’ll explore why spreads matter, how they affect your trade execution, and how to avoid costly mistakes. Perfect for beginners and active traders who want a clear understanding of bid-ask spreads and trading mechanics.
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
Chapters:
0:00 Bid and Ask Explained
0:59 Bid-Ask Spread Explained
1:36 What is the Order Book?
2:53 What drives the Bid-Ask Spread?
3:55 Bid-Ask Spreads In the Real World
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.
Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit www.interactivebrokers.com.
Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by clicking the link below. Multiple leg strategies, including spreads, will incur multiple transaction costs. https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Any trading symbols, entities or investment products displayed or named in this podcast are for illustrative purposes only and are not intended to portray recommendations
Options Volatility Smile & Volatility Skew Explained | Options Trading
Learn what implied volatility means and how it impacts options pricing in this clear, beginner-friendly guide. We break down the concepts of the volatility smile and volatility skew, showing how implied volatility changes across different strike prices. Whether you’re new to options trading or looking to understand volatility patterns more deeply, this video has you covered. Master the difference between a volatility smile and volatility skew to make smarter trading decisions.
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
Chapters:
0:00 – Implied Volatility Explained
1:30 – Volatility Smile Explained
2:13 – Volatility Skew Explained
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
How to Set Up a Paper Trading Account on Interactive Brokers (IBKR Desktop Guide)
Learn how to set up a paper trading account on Interactive Brokers using the IBKR Desktop platform in this step-by-step tutorial. This video covers how to download the Interactive Brokers platform, sign up for an Interactive Brokers account, and enable paper trading so you can start trading with no risk. We also show you how to use the Interactive Brokers paper trading account inside the IBKR Desktop app, making this a great guide for Interactive Brokers for beginners. If you’re looking for a full Interactive Brokers tutorial or want to explore the Interactive Brokers demo account, this video will walk you through everything you need.
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
*Download IBKR Desktop here:* https://ryano.finance/ibkr-desktop
Chapters:
0:00 – How to Download IBKR Desktop
1:20 – Sign Up for an Interactive Brokers Account
2:47 – How to Enable Paper Trading In Interactive Brokers
3:50 – Using the Paper Trading Account in IBKR Desktop
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Intrinsic vs Extrinsic Value Explained with Examples: Options Trading
In this video, Ryan O’Connell, CFA, FRM, explains Intrinsic vs Extrinsic Value in options trading and options pricing using real examples. You’ll learn the difference between intrinsic value and extrinsic (time) value, and how both change over time for in-the-money (ITM) and out-of-the-money (OTM) call options. Whether you’re new to options trading or looking to sharpen your pricing knowledge, this video breaks it down clearly. Watch until the end to see how these values impact real options strategies.
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
Chapters:
0:00 – Intrinsic Value of Options Explained
1:35 – Extrinsic Value of Options Explained
2:13 – Intrinsic & Extrinsic Value Over Time – ITM Call
4:24 – Intrinsic & Extrinsic Value Over Time – OTM Call
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Option Implied Volatility Explained + How to Calculate It in Excel
Learn what option implied volatility is and why it matters for option pricing and risk management. In this video, Ryan O’Connell, CFA, FRM, explains the Black-Scholes option pricing model inputs and shows how to calculate implied volatility in Excel using Solver. Follow along as we define implied volatility, break down the model inputs, and perform a live calculation in Excel. Perfect for traders, investors, and finance students looking to apply these concepts in practice.
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
Chapters:
0:00 – Definition of Implied Volatility
0:54 – Black Scholes Option Pricing Model Inputs
3:31 – Calculating Implied Volatility in Excel
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Explore Top Finance Certificates
Access official certificates from Wharton Online & Columbia Business School Executive Education, powered by Wall Street Prep. Save up to $500 with code RYAN.
