Hey, what's good? Matthew Manuel here. In this video, I'm going to show you exactly how to trade options on Robin Hood uh using this iPhone right here. I'm going to start off by going through all the option settings and everything with you, and then we're actually going to get in and buy and sell a contract. Now, sit back, relax, maybe grab your phone and download the Robin Hood app so you can do this along with me and take full advantage of this video cuz as you'll see later, it cost me $250 to make. All right. So, here we are in the Robin Hood app. And if you haven't already, the first thing that you're going to want to do is go and make sure that your account is even able or set up to trade options. So, in order to do that, you're going to want to click on this little guy at the bottom right. You're going to want to click on the three little lines at the top left. Then you're going to want to, I believe, go to investing. Scroll down. And then right here it says options trading level two for me. There are multiple levels for that. If if you want anything higher than level two, you're going to need to be on a margin account, but I am personally on a cash account so that I can make day trades every day. And and right here for me, it says options setting. If you haven't already gone through what you need to go through to trade options, then it'll probably say something along the lines of apply for options. And then you'll hit that, answer the questions. It's not a test. And more than likely, you'll probably get instantly approved as long as you go through the test, are honest, and don't have a super low risk tolerance because options are not good if you have a very low risk tolerance. So, do yourself a favor. If you have a very low risk tolerance, just scroll down, smash the like button, and stop watching this video because this is not for you. And now that we got that under control, we're going to click back over to the main tab. And now we're going to go over everything that you need to know before we get in and make an office trade. Currently pre-market for me. I'm currently in Portugal as I record this. So, it's oneonone as I'm recording this. The market doesn't open till 2:30. So, you can't trade options pre and postmarket. So, this is a great time to go over uh what you need to understand going into an options trade. So, we're just going to pick a stock. Uh if you have a watch list of stocks already, it'll be down here. You you can click on a stock like that just by clicking on it. Or if you're trading something that's not normally on watch list, you can just go to the top, hit this magnifying glass, and type in the ticker symbol. And in this instance, we're going to take a look at Apple, which is AAPL. Click on it. And and now that we're on Apple screen, I'm going to hit trade, trade options, and and it's going to bring us to this screen. I would personally just ignore everything on this screen. Now ignoring everything except for the dates at the top. You can see there are dates at the top. Uh you can see today and then if you scroll over there are dates further out. It's currently a Friday as I am making this video. So there are contracts that expire today. These contracts in the options world are referred to as zero day to expiration contracts or zero DTE contracts. There is tremendous risk trading these contracts because by the end of the day, these contracts can be pretty much worthless, especially the contracts that are out of the money. So, when you're trading contracts, there going to be two kinds of contracts that we're focused on in this video. Uh you'll notice there is a buy side and a sell side. In this video, we will only be buying contracts. Uh yes, we will be selling them to close them out, but we will not be doing it on this screen. So, making sure we're on that buy spot, uh, you can buy a put, which is what you want to do if you think the stock price is going to go down, and you can buy a call, which is what you would do if you think the stock price is going to go up. Now, looking at calls and assuming that the stock is going to go up, or say we thought the stock was going to go up to 195 today, but but the stock is currently trading at 18,988. All the call options above this share price line are considered to be out of the money and because of that they are much cheaper and at the end of the day these will expire worthless or if it were one of these it would be at the end of the contract these would expire worthless. They have more value due to time. So looking at that contract at 195 a week out it is $38. Two weeks out it's $175. If we go back to today, it's only $3. And another thing, I'm saying dollars, but it's showing cents. The reason I'm saying dollars instead of three 3 cents or 38 cents or $1.75 is because when it comes to the price, you got to multiply it by 100. So that's a $3 contract. So, so again with the call, everything above the share price line is going to be out of the money and everything below is in the money. And you notice as we get in the money, the contracts get more expensive because they actually have intrinsic value. So for instance, say I thought Apple was going to 195. I could buy a 190 call. And to do that, I would just click on it. I would hit buy. I would put how many contracts I want, which is just going to be one. And right here, you can see the limit price, which is the price you're paying for the contract, is showing 41 cents, and it's showing the max cost, 41 cents, because the limit is the highest you're willing to pay for the price. You hit review, and then you swipe up, and that submits your order. But I want to go back and focus on a few things on this screen. So, there is a bid price and an ask price. The bid price is if you're trying to sell out your contract, it's going to benefit you to sell at the bid price cuz you will be sold out of this contract right away. If you're trying to buy the contract, it's going to benefit you to buy at the ask price because it's going to fill your order right away. And stock prices fluctuate. Sometimes they can move really fast. So, it's always going to be best for you to put in your order at the bid or ask. If if you're selling at the bid, if you're buying at the ask, another thing to know when you buy an options contract, the most you can lose off the contract is the amount that you pay. So, for instance, if I bought this contract and it expires worthless today, the most I can lose is $41 plus that 3 cents per contract. And then if Apple did happen to run up to 195, the break even is 19041. So every penny above that is a dollar of profit I made. So if it's runs up to 195, this contract will be worth $500 at the end of the day and I can sell it and I will profit it around $459 on this contract. So that's how that will work. Also, another quick fun fact, you don't have to hold it till expiration. It's actually best if you don't get in and get out with these contracts, but I am not a financial adviser and this is not financial advice. I'm just sharing what I know with you going on. If if we back out, uh there are also puts once again. And and one more thing I want to show you is if if you don't want to rush into this right away and start practicing, you can actually click on say I was looking at the 190 call and wanted to see how it expired or how it did today or track it over time. You can click on the one where it says 190 call and and hit add to watch list. And now it is on your options watch list. And then say I wanted to compare it to how the one for next week does today. You can click on the 190 call. It's a lot more expensive. It's it's about $120 more for the contract, but you can click on it. Add to watch list. And now you have two contracts on your watch list. All right. And then uh going through the same thing, puts are going to be the same but the opposite. Uh just so you see it real quick just to run through for a put. Say say we're at 189.88 and we thought it was coming down to 185. Uh the puts are worth 78 cents per contract. So we want to add it to our watch list. Come add to watch list. Then also do it for today's date as well. Add to watch list. And then maybe we don't just want to add to the watch list. Maybe we're actually trying to make a move today. We'll get in, buy, put how much we want, leave it at the ask price, hit review, then swipe up to order. And we will go over and do this later. Be sure to stick around to the end because we will actually go through buy and sell. And I will even show you my trading plan for the day on how we made our profits. So, real quick, but before we stop this session of the video, I want to scroll back and show you the watch list. All right, so you can see here we have an options watch list. And they're they're going to show up exactly how they would if I were holding options. And they're going to give me a realistic gauge of how I would do if I traded options. So, for instance, right now, uh we click on this. This is what it looks like when you're holding an options contract. Right now, it says watch list position, but if the market were open and this were moving, if I were down on it, the to today's return would be down, the total return would be down. If I were up on it, you would see how much you were up. This is how it actually looks when you own the contract. So, before you ever really trade any money, you can play around with this and see how you would do. So, so be sure to take advantage of that. And now that you know your way around everything, I want to hop into the chart, show you what I'm looking at for the day, and and should everything line up. We'll make some trades. All right, so we're here. It looks like Netflix wants to play because it made this move fast. Netflix is now down here to this area where I was thinking. And as long as it doesn't break this line, I am going to look to trade this. I am probably about to grab calls right at open and I'm going to be targeting that level right there. All right, the market opens in 1 minute and 34 seconds and I am going to uh get ready to start screen recording and I'm going to start looking for options contracts. Uh so looks like you're going to get to see a live market open trade. We're going to be here. I'm going to go to Netflix trade trade options today. I'm not going to get a lot of these because uh first off, you're going to start off see how cheap they start off and and second off you're going to see how fast they can make money uh should this go our way. So yeah, I'm going to delete this zone right here cuz that's irrelevant now. And I'm actually going to set my stop right there. And maybe the entry will be somewhere right there. So yeah, and I'll be looking at this contract right here. I'm going to hit buy. It's not open yet. And maybe we'll look at doing three. If it's around $100, we'll do three of them. All right. The market opens in 8 seconds. It already did this come down part and the market's about to open. Okay, it's coming down. It's coming down. It just broke the level or it quickly wicked it. If it comes out of this, I'm I'm still going to get in a trade. All right, so now that kind of defeated my plans. Forget this. And now I got to look for a new level. Oh, no. No, it's still going. I'm I'm I'm going for I'm going for three. Still got the same target. All right. So, bought it how I just showed you buy the contracts. You zoom in. Follow this play. And you can see we are currently Oh, it's not moving the quickest. Okay, this is going against me. I So, this is how you lose money trading options. So, I'm going to sell out of that. I'm going to sell out of all those cuz it fell through my level. And this is this is the risk of trading options. Just lost a grip right there. So, as you saw, my first plan did not go as planned. But in that first trade, you saw me buy the contracts. You saw me sell out. So, hey, we'll just call this a tutorial on how to trade and how not to trade. So, so if you enjoy this video or learn anything, be sure to smash the like button. It really helps to support the channel. And for some reason you're new here and haven't already, be sure to subscribe and hit the bell notification icon so that you don't miss any future content. Oh yeah, and if you haven't already, be sure to join the Discord. As you can see, we keep it real in there. If you have any questions, comments, looking for a sense of community, want to find people to trade with, join the Discord. It's free. I post my charts. Uh, usually they don't look like the one today. And I really want to build a community of like-minded individuals that can grow and network together. So, if you're into that, be sure to join that. And last, but certainly not least, thank you so much for watching. Matthew Manuel signing off. And I want to change your