Chapters
LV talks about her own results in this video. That is her history, not a forecast — it may not apply to you, and most people who trade lose money.
Quick summary
Buy a and nothing is won or lost until you sell — it can sit there for years. Buy a and there is a date on it; the move has to happen before then or it is over.
One contract represents . Think of it as a deposit on an apartment: you pay $500 to lock in $1,500 a month. If the neighbourhood booms, that hold is worth a lot. If you walk away, you lose the deposit and nothing else. You never lose the apartment — only the hold. What you paid is the most you can lose, every time.
Lesson 2 of 5
Shares versus contracts
A share can wait forever. A contract cannot.
Why a share can wait forever and a contract cannot — explained with an apartment deposit.
Words she uses
Strike price
The price your contract locks in.
Like this: The number printed on a gift card. Whatever the shop charges later, your card still says that number.
Expiration
The date and time your contract runs out.
Like this: The use-by date on a coupon. The day after, it is worth nothing at all.
Premium
What you paid for the contract. It is also the most you can lose.
Like this: The price of the ticket itself. Whether you go or not, that money is already spent.
100 shares
What one options contract represents. Always one hundred.
Like this: A box of eggs. You do not buy one egg — the box comes as a dozen, every time.
What to take away
- Shares do not expire. You have not made or lost anything until you sell.
- Contracts do expire. The move has to happen before the date.
- One contract represents 100 shares.
- Buying is a deposit: worst case you lose the deposit, not the apartment.
What are you actually risking?
The apartment deposit. Drag what you pay for the contract and watch what it controls — and what you can lose.
Check yourself
Answer all of them to unlock the next one. Getting one wrong is fine — the explanation is the point.
1You pay $500 to hold an apartment at $1,500 a month. You change your mind. What have you lost?
Only the deposit. That is exactly the shape of buying a call — the is the most you can lose.
2You buy Apple shares at $300 and it falls to $200. How much have you lost?
Nothing is realised until you sell. This is the difference she wants you to feel: shares wait, contracts do not.
3One contract represents how many shares?
100. It is why contracts move so much faster than shares — and why size matters more than beginners expect.
0 of 3 answered
Answer the questions above to carry on.
