Buying Call Option Example on Charles Schwab

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Check out my entire playlist on Trading Options here: https://www.youtube.com/playlist?list=PLscTZuOqKWIxSZzy4ObKWDznEsCot_1HU Like, Comment, and Share my videos! 🔔 SUBSCRIBE HERE 🔔 http://bit.ly/BroeSubscribe 💯 LET’S CONNECT 💯 📷 Instagram @JakeBroe 👉 https://www.instagram.com/jakebroe/ 🐦 Twitter @Broe_Jake 👉 https://twitter.com/broe_jake You can also see my entire Brokerage Account Challenge Playlist here: https://www.youtube.com/playlist?list=PLscTZuOqKWIyS6LKoVjC_fifTSiwrxdNV 👇 👇 Watch My Other Videos Here 👇 👇 ★ How to Trade Options (The Basics) https://youtu.be/cOHgDol8fJA ★ How to Trade Options (Buying Put Options) https://youtu.be/nl1UHyu7u80 ★ Selling Put Option Example on Charles Schwab https://youtu.be/rrgYG9EUN5k 📷 📷 My YouTube Equipment 📷 📷 ► My Camera 👉 https://amzn.to/2UZpFwA ► My Wide-Angle Lens 👉 https://amzn.to/2Qwf3Sq ► My Wireless Microphone 👉 https://amzn.to/2QBV9W0 ► My Shotgun Microphone 👉 https://amzn.to/36bdLTv ► My Lighting 👉 https://amzn.to/2F5Ey7V ► My Light Diffusers 👉 https://amzn.to/2tjF8fG What flag is that? 👉 https://amzn.to/357sptp What is your background? 👉 https://amzn.to/2BCHRp1 ================ 📚 📚 Books That Changed My Life 📚 📚 📗 How to Win Friends & Influence People 👉 https://amzn.to/2F3ahGC 📕 Dumbing Us Down 👉 https://amzn.to/2spodrZ 📘 Quiet - The Power of Introverts 👉 https://amzn.to/36b2ti3 📙 The Red Queen 👉 https://amzn.to/2QzNW8W 📔 Rich Dad Poor Dad 👉 https://amzn.to/3bliFyP 📒 Why Nations Fail 👉 https://amzn.to/3fWZ3Em ================ The popular misconception that 90% of all options expire worthless frightens investors into mistakenly believing that if they buy options, they'll lose money 90% of the time. But in actuality, the Chicago Board Options Exchange (CBOE) estimates that only about 30% of options expire worthless, while 10% are exercised, and the remaining 60% are traded out or closed by creating an offsetting position. Call Buying Strategy When you buy a call, you pay the option premium in exchange for the right to buy shares at a fixed price (strike price) on or before a certain date (expiration date). Investors most often buy calls when they are bullish on a stock or other security because it offers leverage. For example, assume XYZ stock trades for $50. A one-month call option on the stock costs $3. Would you rather buy 100 shares of XYZ for $5,000 or would you rather buy one call option for $300 ($3 x 100 shares), with the payoff being dependent on the stock's closing price one month from now? Consider the graphic illustration of the two different scenarios below. While both investments have unlimited upside potential in the month following their purchase, the potential loss scenarios are vastly different. Case in point: While the biggest potential loss on the option is $300, the loss on the stock purchase can be the entire $5,000 initial investment, should the share price plummet to zero. The Bottom Line Trading calls can be an effective way of increasing exposure to stocks or other securities, without tying up a lot of funds. Such calls are used extensively by funds and large investors, allowing both to control large amounts of shares with relatively little capital. ================ 📧 E-mail me at: JakeBroeYT [at] gmail [dot] com Official business inquiries can be sent here. Personal e-mails will be discarded. ================ #CharlesSchwab #TradingOptions #BuyingCalls ================ DISCLAIMER: This video is for entertainment purposes only. I am not a legal or financial expert or have any authority to give legal or financial advice. While all the information in this video is believed to be accurate at the time of its recording, realize this channel and its author makes no express warranty as to the completeness or accuracy, nor can it accept responsibility for errors appearing in this video. ADVERTISER DISCLOSURE: Jake is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to www.amazon.com. Additionally, other referral links are included and this channel does receive compensation for sending traffic to partner sites. Shopping through our links is an easy way to support the channel and we appreciate and are super grateful for your support!