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  • All right, let's talk about trading because when it comes to trading I think a lot like the ancient chinese general you've probably heard of him.

  • His name is Sun Su and Sons who had a famous quote and I like to repeat it over and over again and you'll probably see it coming up here on the screen and he says this every battle is won before it's ever fought.

  • Think about that every battle is won before it's ever fought.

  • And I couldn't agree more with this.

  • Very intelligent general in that if you look at all of the battles you fight in your life there always fought before in your preparation, in your planning, in your strategy, in your education.

  • And so what I'm about to teach you and what I teach inside my defy academy are trading philosophies, disciplines and strategies That I've adopted over the past 30 years, Yep, I'm that old and they're real and they work I have seen and been through pretty much everything I've seen Russian ruble crisis Asian crisis.

  • I've seen the credit markets crash.

  • I've seen everything.

  • And I've watched what happens in the equity markets, foreign exchange markets, fixed income markets and of course crypto markets.

  • And I teach trading philosophies uh in order to create double digit long term portfolio gains inside my academy, I'm talking 10, 20 years of gains and that's what I teach inside my defy academy based on what I learned, sitting next to some of the greatest traders in the world in new york city in Chicago as well as in the pits at the Chicago board of Trade in the Chicago mercantile exchange and here in London where I worked in the credit markets for almost 10 years before I started London real.

  • Honestly, I feel like I'm preparing my whole life for teaching inside the defi academy and I couldn't be more excited today to talk about our subject, which is advanced crypto options trading.

  • How you can maximize your gains using call and put option strategies.

  • Look, we already know that Forbes magazine recently said that this will shift the structure of the whole financial system at a macroeconomic level.

  • And the truth is simply this decentralized finance is already revolutionizing the world.

  • You just don't know it yet.

  • Now this incredible marketplace is growing at a breakneck speed.

  • It's gonna generate trillions of dollars in revenue and give financial freedom back to the six billion people who don't have proper access to financial markets.

  • Most people don't, not to mention the two billion people that don't even have any access to financial markets.

  • We call them the unbanked, which is why me and my team have gone all in on defy and plan to for the next 10 years with two goals in mind.

  • One I want to create generational wealth for my students to, I want to give financial freedom back to the people, I think they can be and only be done simultaneously.

  • You want to create value for yourself and for other people.

  • It's a beautiful thing about capitalism And that's what we're doing here today.

  • So today I want to talk about three things first, I want to talk about options, basics and fundamentals on the screen here, you'll see a simple call and put option and again, don't turn this video off.

  • If those words even scarier or if the guy, I'm scarier because I'm gonna walk you through, this is actually quite simple.

  • Um, and I'm gonna walk you through how to price it and how to trade it.

  • Here's a quick screenshot something I share with my students inside my academy, which is one of the exchanges where we buy and sell our call options.

  • This is a place called Dara bit, but there are many, many out there.

  • Again, it looks complicated, but it actually isn't, especially if you have mentorship, if you have training videos and if you have a peer group that you can continue to be in touch with for the long term and that's what we do inside my academy and inside what I call my defy investment wizards.

  • That's a whole another topic.

  • But today I'm gonna talk about what is an option.

  • I'm gonna talk about premiums, expiration dates, strike prices and the difference between a call and a put option again, really briefly, you can see on the screen here, this is the payout structure for a call option.

  • Again, what you can see about this is you have upside that's potentially unlimited where your downside is capped.

  • Of course you pay for that.

  • And of course a put option here where you'll see on screen where when you own one of those things that you've actually got almost unlimited downside with a fixed upside.

  • Uh and again, if you trade that intelligently, you can use this for gains as well.

  • Lastly, one of the concepts I'm going to talk about is whether an option is in the money or out of the money, you might have heard that terminology and you can see a graph here.

  • All it means that is if your strike price is at the current price of the asset, your crypto asset for example.

  • So if it's Bitcoin and it's trading at 51,000 and you have a call option on Bitcoin struck at 51,000, that's an at the money.

  • Call if your asset prices above your strike price, it's in the money and if it's below then it's out of the money.

  • It's fairly simple and I'm gonna walk through it today.

  • And finally, I'm going to talk about how to price those options here.

  • You can see a quick graph here of what an option value is versus what we call the intrinsic value.

  • And again, I'll touch on that more, we go deep into this inside my defy academy and in our secondary course called kings of defy advanced trading protocols and I'll talk more about that later again, don't get intimidated.

  • Always like to say if you look at some of these incredible Formula One race car drivers, um, they don't necessarily understand the physics of what actually happens inside the engine.

  • They don't understand necessarily the material science of why the tire grips the road.

  • But some of these drivers, they can get the best performance out of that car.

  • They don't need to know exactly what goes under the hood.

  • Same with you when you use the internet, you don't know what https uh, forward slash colon is on the front of your browser.

  • You just know that when you type it in, you get to your website.

  • So again, don't be intimidated by the science of the details.

  • A lot of people out there want to intimidate you.

  • I don't want to do that.

  • I want you to understand this is a simple instrument options have been around since the beginning of time And as long as humans have been here, we love options and they're everywhere around us.

  • And I'm gonna talk to you about them today.

  • Alright.

  • Part two.

  • I'm going to get into something called options Greeks and again, don't be intimidated here.

  • I'm gonna give you a simple explanation and I'm gonna go through things like delta, gamma, vega and data and these are all ways of understanding your option and be able to talk about them and understand them.

  • Again, it might sound complicated, but once you actually trade the option, it's not.

  • And again, I don't want to intimidate with a formula.

  • But all this is based on something called the black scholes option pricing formula, which I think was finally published in 1977.

  • Uh this is something that will be referred to by a lot of Wall Street traders and pit traders in Chicago.

  • This is the complicated formula behind the option.

  • But one of the most important things about this formula that was a breakthrough when it came out in the 70's is that the price of an option is quite simple.

  • It's based on only a few things, the current price of the, of the asset, the strike price, the time to expiration and the volatility of the underlying market.

  • And that, knowing that alone is a great way to simplify options trading back in the day.

  • We used to think it might have something to do with the rate of growth of the market.

  • It actually doesn't, it's got something to do with those simple simple pieces and that will help us understand options.

  • Uh Next I'll get into what Delta is again, it's a great way of expressing how much in or out of the money the option is.

  • And of course finally, I'll talk about something called data, which is dime decay again, I'll walk you through it to what will make much more sense.

  • And finally we'll get into an incredible concept called vega.

  • And again, I'll throw in this three dimensional graph here, it basically means that his volatility increases the price of your option increases.

  • And again, it's just a fundamental that you can go to understand the last part of today's module on advanced option trading is going to go into crypto trades for maximum gains.

  • And on the screen here you'll see some of the basic simple option strategies you can put up, which includes being long a call, sure to call long a put and sure to put again.

  • These are very simple diagrams that explain how you can either own or be short, some basic option strategies.

  • And again, just to get you in touch with the wall street lingo.

  • Being long something means owning something and being short something means being selling that or being actually short that position.

  • Uh that's all that lingo means and I'll go through that today.

  • Again, I'll walk through some of these strategies again to show it up there.

  • A lot of my students are having some money right now where they're short put options and that profit and loss looks something like this on screen.

  • Also their long call options as well.

  • They're doing this on assets like Bitcoin and ethereum and making some good money.

  • And again, if you want to put it all together on the same graph, you can see those both expressed and again, this is a way of making money by being bullish on the price of the underlying cryptocurrencies.

  • Again, a lot of people in crypto and defy believe they're going to make money in the long run and a lot of them own these coins but they want to actually add to those gains by using options.

  • And finally I'll cover a couple more complicated, complicated strategies like a bull spread.

  • This is where you buy Akapol option and sell a call option at the same time and pay a little bit less of a premium.

  • You can see that graph on screen as well.

  • And again, lastly, I want to talk about something called a covered call.

  • This can be a really good strategy when you own Bitcoin for example and you think it's going to trade in a range and you think you know what how can I make some extra premium without having a lot of downside.

  • You can sell call options against that.

  • It's called a covered call.

  • Lastly I'll finish off with all the complicated, crazy sounding option names like strangles and straddles and butterflies and condors and barrier options.

All right, let's talk about trading because when it comes to trading I think a lot like the ancient chinese general you've probably heard of him.

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A2 option trading call price defy academy

Options, Premiums, Expiration Dates & Brian's Trading Philosphies ?

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    林宜悉 posted on 2021/09/21
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