The Three Reasons Traders Trade Options, Episode 1: Speculation | Getting Started with Options

Getting Started with Options | Cameron May | 1-13-26
Characteristics and Risks of Standardized Options. https://bit.ly/2v9tH6D

In episode one of this three-part series, we begin to break down the three primary reasons traders use options, starting with speculation. Using real-time examples on the thinkorswim PaperMoney platform, this video defines what speculation really means in an options context and why traders often turn to options instead of stock to express short-term directional ideas. We’ll also discuss how leverage works in options, along with the types of stocks a trader might consider when looking to speculate.

From there, we walk through two of the most common speculative option strategies: long calls and long puts. At a high level, you’ll learn how each strategy is structured, what a trader is typically trying to achieve, and the key risks involved. We’ll then place an example long call and long put trade using current market data to show how these strategies might be put into practice.

👉 Be sure to check out Episode 2 of this series, where we shift gears and focus on using options for income.

Follow me on social media!
LinkedIn:   / cameronmaycs  
X: https://x.com/CameronMayCS

Each of these weekly webcasts is carefully structured to help new option traders along the leverage learning curve. Your education coach will introduce you to options terminology, clarify the common opportunities and risks, and explain the associated rights and obligations to help you become more confident with your understanding of options trading.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction.

New to Options? Here is the YouTube playlist for my "Getting Started with Options" series:    • Getting Started with Options | Schwab Coac...  

New to Trading? Here's the playlist for the Getting Started with Technical Analysis strategy:    • Getting Started with Technical Analysis | ...  

Here's the link to the new Schwab coaching calendar: https://www.schwab.com/schwab-coaching

#TraderTalks #SchwabCoaching #optionstrading #optionstrategy #stockmarket #cameronmay