Welcome back to the "Day Trading for Beginners" podcast! Today's episode, number 21, introduces the basics of option spreads, a crucial topic for those new to trading options. As we approach the end of our comprehensive discussion on options, we're setting the stage for more advanced topics like technical analysis in upcoming episodes.


Download the 6 Month Blueprint: https://stokestrades.com/blueprint

Watch the video on YouTube: https://youtu.be/RBbbGrZiv8g

Access the full article: https://stokestrades.com/option-spreads


In This Episode:

• Introduction to Option Spreads: We break down what option spreads are and how they work. This episode is designed to help beginners understand the structure and utility of spreads in trading options, without diving deep into complex strategies.
• Types of Spreads Explained: We cover the three main types of spreads—vertical, horizontal (calendar), and diagonal—using easy-to-understand examples. Each type is explained in detail to ensure clarity on how they differ based on strike prices and expiration dates.
• Debit and Credit Spreads: Learn the difference between debit and credit spreads and how they impact your trading account. This part of the discussion aims to clarify common confusions related to these terms, especially for those with a background in finance or accounting.
• Practical Examples: We will walk through hypothetical scenarios to illustrate how vertical spreads work compared to buying options outright or purchasing stocks directly. These examples highlight the risk management and cost efficiency of using spreads.

Resources:

• Access the "6 Month Blueprint" I've been following, detailing my journey towards becoming a full-time day trader: StokesTrades.com/blueprint
• Join our growing community on Skool for free, a platform for learning and sharing about options and day trading. No courses for sale, just a supportive environment to grow as a trader. Hit the Community tab on the website.

Next Steps:

Stay tuned for our next episode where we'll review all we've discussed about options before moving on to technical analysis. Also, look out for visual content on the YouTube channel that complements this discussion with practical demonstrations.

Website and Other Social Accounts:

https://stokestrades.com/

https://www.youtube.com/@StokesTrades

Welcome to episode 20 of the "Day Trading for Beginners Podcast." Following our journey through options trading, we've explored buying and selling options and how their prices are determined. Now, it's time to understand the Greeks—key indicators that help predict how option prices might change.


Download the Blueprint:

Ensure you've downloaded the 6 Month Blueprint for an in-depth guide on our trading journey. It's available at StokesTrades.com/blueprint


This Episode Covers:

• Introduction to Option Greeks: We break down the concept of Greeks in an easy-to-understand manner, avoiding complex strategies or deep dives into individual Greeks. This episode continues our learning curve on options, setting the stage for future discussions on practical applications within your brokerage account.
• The Greeks Simplified: Using analogies, such as comparing the Greeks to flight instruments, we illustrate how they guide traders in navigating the options market. The Greeks—Delta, Gamma, Theta, Vega, and Rho—serve as tools for assessing risk and predicting price movements, similar to how a pilot uses altitude, speed, and fuel gauges.
• Delta and Gamma: Learn how Delta acts like a speedometer, showing how fast an option's price might change with the underlying stock, while Gamma indicates the acceleration of Delta itself.
• Theta, Vega, and Rho: Understand how Theta measures time decay, Vega shows sensitivity to market volatility, and Rho relates to interest rate changes.

Watch the video on YouTube:

https://youtu.be/NmzESzIGvlA


Read the full article here:

https://stokestrades.com/option-greeks/

Next Steps:

• As we wrap up our series on options, stay tuned for a practical guide on locating and trading options within your brokerage account. This upcoming content, including YouTube videos, will demystify the process of using Greeks for real-world trading decisions.
• Technical Analysis Ahead: After concluding our discussion on options, we'll venture into technical analysis, marking the next phase of our day trading education.

Resources and Community:

• Chat GPT and Learning Tools: Discover how leveraging AI like Chat GPT, along with finance blogs and YouTube channels, can enhance your understanding of complex topics such as option Greeks.
• Join Our Community: For more resources and a supportive learning environment, visit our website and join the free community on Skool. Here, you can access all podcasts, videos, and a dedicated section for the resources I've used to learn about options.

Website and Other Social Accounts:

https://stokestrades.com/

https://www.youtube.com/@StokesTrades

Welcome back to the "Day Trading for Beginners Podcast," where we document the journey towards becoming a full-time day trader. Today we're pausing for a moment to reflect on the first 3 months of our journey. As we hit this milestone, it's a perfect time to assess our progress against the 6 Month Blueprint we've set out with and discuss the mental resilience required to pursue day trading or any ambitious goal.


Download the 6 Month Blueprint: https://stokestrades.com/blueprint

This blueprint is our roadmap for the initial months of our day trading journey, covering everything from the basics of the stock market to setting up a brokerage account and intros to options and technical analysis.


The Importance of Mindset in Day Trading

In one of our previous episodes focused on mindset, we discussed the ups and downs you'll likely face on this journey. March has been a challenging month for me personally, juggling family commitments and unexpected hurdles while staying committed to learning day trading. It's a stark reminder that success is not a straight line but a path filled with setbacks and victories. Remember, persistence and adaptability are key to overcoming the valleys of despair.

Where We Stand

Over the past three months, we've covered a wide range of topics:

• Basics of stocks, bonds, ETFs, futures, Forex and options
• Choosing a brokerage account and setting up for paper trading
• Understanding different types of stock market orders
• An introduction into options trading

Looking ahead, we plan to explore the intricacies of technical analysis and the importance of maintaining a trading journal. While we have laid a solid foundation, there's still much to learn, especially about options and developing effective trading strategies.

Staying Consistent

The journey to becoming a proficient day trader is long and requires consistent effort. Regardless of the challenges life throws at us, it's crucial to keep moving forward, learning something new every week. Join me in committing to this process, knowing that each small step takes us closer to our ultimate goal.

Join Our Community

For additional support and resources, consider joining our community on Skool. It's a fantastic space to connect with fellow beginners, find accountability partners, and share your learning progress. Visit StokesTrades.com and click on the community section to join for free.

Looking Forward

Next week, we'll tackle the topic of options and the Greeks, wrapping up our discussion on options by the end of April. As we approach the halfway mark of our 6 month journey, we're gearing up to learn about technical analysis and setting up a trading journal. Stay tuned, and let's keep pushing forward together.

Thank you for tuning in to this week's episode. Don't forget to subscribe to the podcast and check out our YouTube channel for more visual content on day trading. Here's to a productive April and beyond!

Image referenced:

https://stokestrades.com/day-trading-mindset-of-a-beginner/

Website and Other Social Accounts:

https://stokestrades.com/

https://www.youtube.com/@StokesTrades