so you want to learn how to trade options let's talk about it now if you want to learn how to trade options you have to be able to understand how options work I'm not going to cover that in this video but I might have a video down in the description that talks about calls puts how to understand how contracts make their money this video is going to be specifically tailored on how you can practice and get better at trading now for those of you who already know how expiration times work how calls work premium what you got to do is when you open up Robinhood you select a contract that you want to trade that you want to buy and you want to click on the middle part of the contract to open up the information once you do all this you want to click on add to watch list now what this is going to allow you to do is going to allow you to allow you to paper trade the contract a lot of new beginner Traders are scared to jump into options because they can be very volatile they can lose you a lot of money but they can also gain you a lot of money paper trading is a great way to buy a contract and see how much money you could have made or could lose um without actually losing any money when you do buy a contract you're going to see this diagram something similar to this now if I would have bought this 500 call it would have costed me approximately 299 dollars now this is very important to know because as you can see the price of the contract moves throughout the day depending on how the stock moves when you buy a contract you're going to see a page similar to this that will tell you today's return and your total your total return it'll tell you your Breakeven price and how much you are currently losing or gaining this is crucial if you want to learn to become a better option Trader because it's going to allow you to practice experiment into trades now what I recommend you do is you open a charting software you all know for those of you who are subscribed I love to use trading view it's free to the public they have an app if you're using an iPad and they have an app as well for the desktop Now using trading view is a great way to find positions um when to buy now you could use Robinhood as well I highly recommend use trading view but even if we if we chose to use Robinhood the the the the strategy is simple you want to buy low and you want to sell High okay so you never want to buy a contract when the stock is at its high never buy calls when it's at its high because that's when the price of the contract is at its peak value if you buy at the peak and the stock drops even if it's a subtle drop which the probability of it dropping is much higher when the stock is higher up your contract is going to lose value twice as fast and you're going to lose that money very quickly now what I recommend you do is you go on trading View and during the trading session you follow a stock let's say QQQ You observe it and when you feel like you see an opportunity to buy in you want to go to uh Robin Hood and open up the contract that you want to buy of course play around with each contract notice how much each contract makes compared to others and add it to your wish list and then from the moment you add it to your wish list the contract will track how much it has gained since you have done that I recommend you all do this every new Trader you're gonna learn a lot now let me give you one last tip um if you're enjoying these tips make sure you subscribe to this channel for more I have many more videos that talk about option trading that I think you all should watch um now this is a website I like to call I like to use a lot when making a play now when I see an opportunity I don't just jump in I make several steps before I jump in one of the steps I like to do is open up an option calculator now these option calculators allow you to put in the position that you want to buy whatever contract you want to buy and it gives you a visual diagram of what would happen how much money you would gain or lose depending on how the stock would move as you can see here if I see that the stock move goes down the very first day where I buy it it tells me exactly how much I'm gonna lose and how much I could possibly gain this is a great way to have a roadmap of what to do if the stock doesn't go your way if your position doesn't go your way it is important to know your risks and your rewards when trading so without that being said guys I'm gonna have these links in the description below I'm have trading view I'm have the option calculator and I'm gonna have the video talking about options as a whole for those of you who don't know how options work and how they make you money um once again thank you all for watching we have recently hit 16 000 subscribers thank you all and if you guys want to know more about trading and you want to become a better Trader and you want to trade to Freedom subscribe to this channel because that's what I'm here to do to help you reach your goal thank you all for watching I hope you all have beautiful successful trading sessions