))
Option Prices Explained for Beginners - Understand Intrinsic and Extrinsic Values
Manage episode 409986824 series 3547688
Content provided by Tyler Stokes. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Tyler Stokes or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.
Welcome to Episode 18 of the "Day Trading for Beginners Podcast". In this episode, we're talking about how options are priced. It's our third chat about options, building on previous ones about what options are and buying and selling them.
Download: If you're walking the same path to become a full-day trader, don't miss my 6-month plan. You can find it at StokesTrades.com/blueprint
What We Cover Today:
- Option Prices: Why do you pay what you do for options, whether buying puts or calls?
- In the Money, At the Money, Out of the Money: Simple explanations to help you understand these key concepts.
- Intrinsic and Extrinsic Values: Breaking down the two main parts that make up an option's price and why it's important.
- Time and Volatility's Role: How the time left until an option's expiration and the implied volatility affect its extrinsic value.
- Implied Volatility: How the market's guess about a stock's future movement can change the price of options.
- Learning Tools: Sharing useful resources and platforms, including a free community platform and an options course module filled with my go-to resources.
Wrapping It Up:
This episode aims to make understanding option pricing straightforward, focusing on intrinsic and extrinsic values—key knowledge for dealing with options.
Stay in Touch:
For more resources, including videos and a community of traders, head over to StokesTrades.com. Let's learn and grow together in trading.
Stay tuned for more simple explanations of trading concepts. Let's make trading easier to understand, one episode at a time.
Website and Other Social Accounts:
https://stokestrades.com/
https://www.youtube.com/@StokesTrades
Join Our Free Community on SKOOL:
https://www.skool.com/day-trading-for-beginners
32 episodes
Share
