Buying Calls the Careful Way: Strike, Time, Size and Exits

Free preview · 15:07

Two traders, the same forecast, opposite results. The difference was which call they bought. This lesson turns a forecast into a call that can actually pay.

After this lesson you can

  • Turn any forecast into three answers: which way, how far, and by when
  • Pick a strike whose breakeven sits inside your target, and read what delta is telling you
  • Buy more time than your forecast needs, and size the trade by the dollars you can afford to lose
  • Decide before you enter what you'll do with a winner and when you'll leave a loser
  • Recognise the five costly mistakes, starting with buying what's cheap instead of what's likely

Chapters

  1. 0:00Same forecast, opposite results
  2. 1:33Three questions before you buy
  3. 2:55Which strike
  4. 4:42Delta: how much it moves
  5. 6:20How much time to buy
  6. 7:56How much to buy
  7. 9:22When it works
  8. 11:08When it doesn't
  9. 12:42Five costly mistakes
  10. 13:53Recap

Practice in the game: Level 1 · Hitchhiker

Practice with:P&L Calculator

In Chinese: Lesson 3 · 买入看涨

All lessons in Options Trading for Beginners →