Can TikTok creators become stock and option traders? Tom Sosnoff takes two "yutes," Kay and Errol, and throws them into the options trading world. Find out how they navigate market activity while learning the ins and outs of puts and calls!
Get a little background on Kay and Errol and find out why they're interested in learning about market awareness, boosting their probability of success, and enhancing their decision-making skills along the way.
Two beginner traders get familiar with common options trading metrics and put on their first trades with the use of vertical credit spreads.
Now that Tom's two students have a few trades under their belt, they take a step back and talk through building habits of market awareness and how it can be utilized to approach options trades or portfolio management on a regular basis.
With 21 days until expiration, Kayla and Errol learn how to roll their strikes in their options trades to reduce risk, and roll them out to extend duration.
The yutes learn to trade options on futures and calendar spreads, as well as how yield futures products work.
The yutes learn how to keep an awareness of market volatility and what it means for option sellers when volatility goes up or down.
The yutes learn what to do with their in-the-red defined-risk trades at 21 Days to Expiration, and how to handle their delta and theta.
The yutes learn how to create a broken wing butterfly and are introduced to a Pairs Trade, a bet on the relationship between two underlyings.
The influencers learn how to put on a pairs trade-- a bet on the relationship of two underlyings that can act as a hedge against risk.
The yutes are quickly learning that a math-based, mechanical approach wins out over “fundamental” news-based analysis on a consistent basis.
Tom explains to the yutes that unlike with most things in life-- your favorite sports team, a crummy job, or buying a crappy house--in options-trading you get a complete reset every month.
Mike steps in for Tom and has the yutes look at their trading through the lens of extrinsic value, something he says will really fast-track their options education.
The yutes learn that one thing they can do on a big down day is roll their iron condor calls in, closer to the underlying, collecting a credit while still keeping a safe distance from the stock price.
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