In this video, we break down the basics of put options and call options. More specifically, we explain what strike price, expirations, and contract multipliers are.
In addition to using basic examples, we’ve included real call and put performance visualizations to demonstrate how call options increase in price when the stock price increases, and fall when the stock price decreases. Regarding puts, we’ve included an example to demonstrate how put options increase in price when the stock price falls, and decrease in price when the stock price rises.
On top of showing you how option prices change when the stock price changes, we explain why these movements in the option prices make sense intuitively.
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Music: The Only Girl – Silent Partner: https://youtu.be/kT_qHfoiEnQ