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.
The Bear Call Spread Option Strategy Explained
Discover the intricacies of the Bear Call Spread Option Strategy, also known as the bear credit spread, call credit spread, or vertical bear call spread, with Ryan O’Connell, CFA, FRM, in this detailed tutorial. Learn how this approach can help manage risk and enhance profits through a step-by-step breakdown of selling a call with a lower strike price and buying a call with a higher strike price. Understand the fundamentals, including call option definitions and short call option profits, leading up to a thorough explanation of bear call spreads. Explore how this vertical spread strategy can be a powerful tool in options trading. By the end of this video, you’ll grasp how to effectively implement the Bear Call Spread Option Strategy and analyze potential profits and losses.
🎓 *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
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
Chapters:
0:00 – Intro to Bear Call Spreads Explained
0:33 – Call Option Definition
0:55 – Short Call Option Profits Explained
3:24 – Bear Call Spread Definition
4:23 – Step 1: Sell a Call W/ Lower Strike Price
4:47 – Step 2: Buy a Call W/ Higher Strike Price
6:23 – Bear Call Spread Profits & Losses
*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.
Call Options Explained in 5 Minutes | Buying & Selling Calls
Dive into the world of “Call Options” with our quick guide, “Call Options Explained in 5 Minutes | Buying & Selling Calls,” on the Ryan O’Connell, CFA, FRM channel. Starting with a clear “Call Option Definition,” we move to practical insights on initiating a “long call” strategy in “Buying Call Options Explained.” The video then transitions to “Selling Call Options Explained,” where you’ll learn the nuances of a “short call” strategy. Whether you’re a beginner or looking to brush up your knowledge, this is the call option video for you.
🎓 *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 – Call Option Definition
0:17 – Buying Call Options Explained
2:47 – Selling Call Options 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.
Straddle Option Strategy Explained: From Theory to Practice
Join Ryan O’Connell, CFA, FRM, in his latest video, “Straddle Option Strategy Explained: From Theory to Practice,” where he demystifies the complexities of the straddle option strategy. Dive deep into the mechanics of long and short straddles, including detailed profit calculations using Excel, ensuring you understand how to maximize returns while managing risks. Explore the effects of theta decay and implied volatility on your trades, and learn about the various tiers of option permissions required for executing straddles in your brokerage account. This video is a must-watch for traders looking to enhance their strategy toolkit with the versatile and powerful straddle option strategy.
🎓 *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
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
💾 *Download Free Excel File:* https://ryanoconnellfinance.com/product/straddle-option-strategy-excel-calculator/
Chapters:
0:00 – Intro to Straddle Option Strategy Explained
0:25 – Long Straddles Explained
0:55 – Long Straddle Profit Calculation in Excel
5:59 – Short Straddles Explained
6:36 – Short Straddle Profit Calculation in Excel
7:23 – Theta Decay & Implied Volatility
10:43 – Tiers of Option Permissions
11:39 – Execute Straddle in Brokerage Account
*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.
Bull Call Spreads Explained: Options Trading Strategies
Discover the power of options trading with our comprehensive guide to bull call spreads. This video, presented by Ryan O’Connell, CFA, FRM, breaks down everything from the basics of a call option to detailed steps on executing a profitable bull call spread strategy. He answers the question “What is a bull call spread?”. Learn how to maximize your profits with a long call option and understand the potential profits and losses with our step-by-step explanation of buying and selling call options at different strike prices. Master the bull call spread and enhance your trading toolkit by tuning into this detailed tutorial on one of the most popular options trading 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
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
Chapters
0:00 – Intro to Bull Call Spread Explained
0:30 – Call Option Definition
0:55 – Long Call Option Profits Explained
3:15 – Bull Call Spread Definition
4:09 – Step 1: Buy a Call W/ Lower Strike Price
4:47 – Step 2: Sell a Call W/ Higher Strike Price
6:24 – Bull Call Spread Profits & Losses
*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.
Delta Hedging Explained: Options Trading Strategies
Unlock the secrets of delta hedging with our comprehensive guide on options trading strategies. Discover how delta impacts option Greeks, and learn the difference between positive and negative delta to optimize your hedging techniques. Explore the dynamics of delta changes over time and with stock price fluctuations, and compare static versus dynamic hedging approaches. Gain practical insights with a detailed example of dynamic delta hedging, perfect for both novice and experienced traders looking to achieve delta neutral portfolios.
🎓 *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
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
Chapters:
0:00 – Intro to Delta in Option Greeks
0:57 – Hedging: Positive Vs Negative Delta
2:22 – Option Price Change Based on Delta
3:03 – What is Delta Hedging?
3:57 – Delta Neutral Portfolios Explained
5:29 – Delta Changes Over Time
7:43 – Delta Changes With Stock Price
9:01 – Static Hedging Vs Dynamic Hedging
10:22 – Dynamic Delta Hedging Example
*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 Vega Explained: Options Volatility From Beginner to Pro
In this comprehensive video, “Option Vega Explained: Options Volatility From Beginner to Pro,” we dive deep into the concept of Vega, a crucial option greek that measures an option’s sensitivity to changes in implied volatility. Discover how volatility impacts option pricing, extrinsic value, and learn the difference between implied and historical volatility. Explore real-world examples of how Vega affects option prices, its relationship with days to expiration, and gain insights into Vega’s behavior at different strike prices. By the end of this video, you’ll have a solid understanding of Vega and how to effectively apply this knowledge to your options trading 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
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
Chapters:
0:00 – Intro to Option Vega Explained
0:29 – Volatility in Option Pricing
2:20 – Option Extrinsic Value
2:55 – Vega: Definition and Importance
3:26 – Implied Volatility Vs Historical Volatility
4:23 – Vega & Changes in Option Prices
5:09 – Implied Volatility & Stock Price Changes
6:25 – Extrinsic Value & Vega Example
7:36 – Vega & Days to Expiration Relationship
9:15 – Monte Carlo Simulation of Option Prices
10:57 – Option Vega At Different Strike Prices
*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.
Dynamic Delta Hedging Explained In Excel
Explore the fundamentals of Dynamic Delta Hedging in this detailed tutorial, “Dynamic Delta Hedging Explained In Excel.” Begin with an introduction to the delta hedging problem, and advance through practical steps such as time to maturity calculations and delta calculation using the Black Scholes model. Discover how to maintain a delta-neutral portfolio by adjusting your hedge weekly through trading shares, and understand how to calculate the costs associated with these strategies. This guide employs an example from John C. Hull’s “Options, Futures, and Other Derivatives” to provide a clear application context in financial markets.
🎓 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
💾 *Download Free Excel File:* https://ryanoconnellfinance.com/product/dynamic-delta-hedge-excel-calculator/
Chapters:
0:00 – Dynamic Delta Hedging Problem Introduction
2:40 – Time to Maturity Calculations
3:19 – Calculate Delta Using Black Scholes
7:17 – Trade Shares to Hedge Weekly
9:33 – Calculate the Cost of the Hedge
*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.
Theta Explained for Beginners: Mastering Option Time Decay
Join Ryan O’Connell, CFA, FRM, as he explains Theta in options trading, guiding beginners through mastering option time decay in the comprehensive video, “Theta Explained for Beginners: Mastering Option Time Decay.” Discover the essentials of option Theta, why it’s almost always negative, and its impact on option pricing through detailed examples. Dive deep into the intrinsic and extrinsic values of options, understanding how they fluctuate over time for in-the-money (ITM) and out-of-the-money (OTM) calls. Whether you’re a novice trader or looking to brush up on your options knowledge, this video provides invaluable insights into how Theta affects different strike prices and moneyness, equipping you with the expertise to make more informed trading decisions. Plus, gain a broader understanding of option Greeks and how they play a crucial role in your trading strategy.
🎓 *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
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
Chapters:
0:00 – Intro to Option Theta Explained
0:32 – Definition of Option Theta
1:05 – Theta Is Almost Always Negative
1:31 – Example of Theta Price Change Impact
2:18 – Intrinsic Value of Options
3:56 – Extrinsic Value of Options
4:36 – Intrinsic & Extrinsic Value Over Time – ITM Call
6:48 – Intrinsic & Extrinsic Value Over Time – OTM Call
8:29 – Theta at Different Strike Prices & Moneyness
10:07 – Finance Tutoring at RyanOConnellFinance.com
*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.
Gamma Explained: Shaping Option Delta
Join Ryan O’Connell, CFA, FRM, as he demystifies the complex world of options trading with “Gamma Explained: Shaping Option Delta.” This comprehensive video breaks down the crucial roles of Gamma and Delta in options pricing, offering clear insights into how these Greeks impact option strategies. From the basics of Delta and Gamma to their intricate relationship and effects on in-the-money versus out-of-the-money options, Ryan provides an in-depth analysis perfect for both novice and experienced traders. Discover how Gamma shapes the Delta of your options and ultimately your trading outcomes in this essential guide to the Option Greeks.
🎓 *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
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
Chapters:
0:00 – Defining the Option Greeks
0:23 – Delta Definition
0:45 – Option Price Change Based on Delta
1:26 – Gamma Definition
1:48 – Delta Change Based on Gamma
3:18 – Formula For How Gamma Changes Delta
4:02 – In-the-Money Vs Out-of-the-Money Options
4:54 – Delta At Different Levels of Moneyness
8:51 – Gamma At Different Levels of Moneyness
9:59 – Delta & Gamma Over the Life of a Stock
*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.
Delta Explained: An Options Trading Beginner’s Guide
Dive into the world of options trading with “Delta Explained: An Options Trading Beginner’s Guide,” hosted by Ryan O’Connell, CFA, FRM. This comprehensive video covers everything from the basics of delta and the Greeks to how delta influences call and put option prices, changes with stock price movements, and varies with time to expiration. Whether you’re new to options trading or looking to deepen your understanding of delta’s impact on your trading strategy, this guide offers valuable insights into making informed decisions in the options market. Join Ryan as he breaks down complex concepts into easy-to-understand explanations, equipping you with the knowledge to navigate the options trading landscape confidently.
🎓 *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
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
Chapters:
0:00 – Introduction to Delta & The Greeks
0:38 – Call Option Price Changes Based on Delta
1:19 – Put Option Price Changes Based on Delta
2:18 – Implied Option Price Changes Over Time
3:47 – How Delta Changes With Stock Price
5:59 – How Delta Changes With Time to Expiration
7:53 – Call Deltas At Different Strike Prices
10:01 – Put Deltas At Different Strike Prices
*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.
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