{"id":49533,"date":"2020-01-23T08:35:06","date_gmt":"2020-01-23T13:35:06","guid":{"rendered":"https:\/\/www.smbtraining.com\/blog\/?p=49533"},"modified":"2020-01-22T16:35:32","modified_gmt":"2020-01-22T21:35:32","slug":"huge-options-trading-blunders-series-owning-long-options-for-free-episode-2","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2","title":{"rendered":"Huge Options Trading Blunders Series: Owning Long Options for \u201cFree\u201d (episode 2)"},"content":{"rendered":"

This video is the first of a series of ten videos that we’ll be producing as cautionary warnings about the largest mistakes that options traders make and how they can rectify those mistakes. The first Options blunder we’ll cover in this video is about the disastrous consequences of getting cocky and sizing up too quickly as an options income trader.<\/p>\nView Video Transcript<\/strong><\/span>

\n
\n
\n
okay so today’s video is the second in<\/div>\n<\/div>\n<\/div>\n
\n
\n
our 10 part series entitled huge options<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading blunders we decided to produce<\/div>\n<\/div>\n<\/div>\n
\n
\n
this series for traders who are really<\/div>\n<\/div>\n<\/div>\n
\n
\n
serious about trading options for a<\/div>\n<\/div>\n<\/div>\n
\n
\n
living and taking the proper steps to<\/div>\n<\/div>\n<\/div>\n
\n
\n
excel as an options trader as opposed to<\/div>\n<\/div>\n<\/div>\n
\n
\n
fooling around with ridiculous trading<\/div>\n<\/div>\n<\/div>\n
\n
\n
ideas that have giant hidden risks that<\/div>\n<\/div>\n<\/div>\n
\n
\n
are often overlooked<\/div>\n<\/div>\n<\/div>\n
\n
\n
I’m the head trader of SMB capitals<\/div>\n<\/div>\n<\/div>\n
\n
\n
option trading desk and I can tell you<\/div>\n<\/div>\n<\/div>\n
\n
\n
for many years of experience that the<\/div>\n<\/div>\n<\/div>\n
\n
\n
pitfalls were going to be describing in<\/div>\n<\/div>\n<\/div>\n
\n
\n
these videos are real and if you’re<\/div>\n<\/div>\n<\/div>\n
\n
\n
serious about trading for a living you<\/div>\n<\/div>\n<\/div>\n
\n
\n
really need to pay close attention to<\/div>\n<\/div>\n<\/div>\n
\n
\n
these videos so you can avoid serious<\/div>\n<\/div>\n<\/div>\n
\n
\n
problems in your trading journey so if<\/div>\n<\/div>\n<\/div>\n
\n
\n
you’re committed to changing careers and<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading full-time as an options trader<\/div>\n<\/div>\n<\/div>\n
\n
\n
then I urge you to watch this video and<\/div>\n<\/div>\n<\/div>\n
\n
\n
the rest of the videos in this series so<\/div>\n<\/div>\n<\/div>\n
\n
\n
that you don’t fall by the wayside like<\/div>\n<\/div>\n<\/div>\n
\n
\n
so many aspiring traders who don’t want<\/div>\n<\/div>\n<\/div>\n
\n
\n
to spend the time to learn the actual<\/div>\n<\/div>\n<\/div>\n
\n
\n
truth about the challenges and rewards<\/div>\n<\/div>\n<\/div>\n
\n
\n
of options trading<\/div>\n<\/div>\n<\/div>\n
\n
\n
[Music]<\/div>\n<\/div>\n<\/div>\n
\n
\n
hi I’m Seth Freuburg I’m the head trader<\/div>\n<\/div>\n<\/div>\n
\n
\n
of SMB capitals options trading desk SMB<\/div>\n<\/div>\n<\/div>\n
\n
\n
capital is a proprietary trading firm<\/div>\n<\/div>\n<\/div>\n
\n
\n
located in midtown Manhattan whom we<\/div>\n<\/div>\n<\/div>\n
\n
\n
provide capital for options and equity<\/div>\n<\/div>\n<\/div>\n
\n
\n
traders from all over the world trading<\/div>\n<\/div>\n<\/div>\n
\n
\n
both remotely and in our offices here in<\/div>\n<\/div>\n<\/div>\n
\n
\n
New York City now I’d like to suggest<\/div>\n<\/div>\n<\/div>\n
\n
\n
that you click on our subscribe button<\/div>\n<\/div>\n<\/div>\n
\n
\n
right now so that you don’t miss any of<\/div>\n<\/div>\n<\/div>\n
\n
\n
our free trading videos that we produce<\/div>\n<\/div>\n<\/div>\n
\n
\n
for traders and investors all over the<\/div>\n<\/div>\n<\/div>\n
\n
\n
world they’re really very valuable ok so<\/div>\n<\/div>\n<\/div>\n
\n
\n
today we’re going to continue our series<\/div>\n<\/div>\n<\/div>\n
\n
\n
of options blunders and myths that we’re<\/div>\n<\/div>\n<\/div>\n
\n
\n
trying to debunk and warn you about so<\/div>\n<\/div>\n<\/div>\n
\n
\n
that you can avoid dangerous options<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading situations so in today’s video<\/div>\n<\/div>\n<\/div>\n
\n
\n
we’ll be talking about this crazy myth<\/div>\n<\/div>\n<\/div>\n
\n
\n
about options trading that somehow is<\/div>\n<\/div>\n<\/div>\n
\n
\n
circulating around the trading world and<\/div>\n<\/div>\n<\/div>\n
\n
\n
it goes like this<\/div>\n<\/div>\n<\/div>\n
\n
\n
I bought a call option on Facebook right<\/div>\n<\/div>\n<\/div>\n
\n
\n
before earnings and I sold a Facebook<\/div>\n<\/div>\n<\/div>\n
\n
\n
put option for the same price so I own<\/div>\n<\/div>\n<\/div>\n
\n
\n
the call for free now we need to break<\/div>\n<\/div>\n<\/div>\n
\n
\n
down exactly what that statement means<\/div>\n<\/div>\n<\/div>\n
\n
\n
and then we’ll delve into why that<\/div>\n<\/div>\n<\/div>\n
\n
\n
concept is so insane and dangerous now<\/div>\n<\/div>\n<\/div>\n
\n
\n
most of you probably know something<\/div>\n<\/div>\n<\/div>\n
\n
\n
about options but just for a quick<\/div>\n<\/div>\n<\/div>\n
\n
\n
review and this will be fast what is<\/div>\n<\/div>\n<\/div>\n
\n
\n
known as a call option on a stock<\/div>\n<\/div>\n<\/div>\n
\n
\n
entitles the buyer of that option to<\/div>\n<\/div>\n<\/div>\n
\n
\n
purchase 100 shares of that stock at a<\/div>\n<\/div>\n<\/div>\n
\n
\n
certain price called<\/div>\n<\/div>\n<\/div>\n
\n
\n
the strike price of that option<\/div>\n<\/div>\n<\/div>\n
\n
\n
regardless of what the stock is actually<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading at what’s called a put option on<\/div>\n<\/div>\n<\/div>\n
\n
\n
the other hand entitles the buyer of<\/div>\n<\/div>\n<\/div>\n
\n
\n
that put to sell 100 shares of a stock<\/div>\n<\/div>\n<\/div>\n
\n
\n
he owns at the strike price of that put<\/div>\n<\/div>\n<\/div>\n
\n
\n
again regardless of what price the stock<\/div>\n<\/div>\n<\/div>\n
\n
\n
is trading the buyer of the option pays<\/div>\n<\/div>\n<\/div>\n
\n
\n
what’s called a premium to the seller of<\/div>\n<\/div>\n<\/div>\n
\n
\n
the option because the seller of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
option is taking the risk this stock<\/div>\n<\/div>\n<\/div>\n
\n
\n
will go past the strike price of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
option in which case the buyer can<\/div>\n<\/div>\n<\/div>\n
\n
\n
exercise his options so in the case of a<\/div>\n<\/div>\n<\/div>\n
\n
\n
call even if the stock has gone way<\/div>\n<\/div>\n<\/div>\n
\n
\n
above the strike price of the call the<\/div>\n<\/div>\n<\/div>\n
\n
\n
call buyer can exercise his right to buy<\/div>\n<\/div>\n<\/div>\n
\n
\n
100 shares at that strike price in other<\/div>\n<\/div>\n<\/div>\n
\n
\n
words he’s entitled to buy the shares<\/div>\n<\/div>\n<\/div>\n
\n
\n
way below market he could flip them the<\/div>\n<\/div>\n<\/div>\n
\n
\n
next minute and make a huge profit on<\/div>\n<\/div>\n<\/div>\n
\n
\n
those share<\/div>\n<\/div>\n<\/div>\n
\n
\n
or conversely on the put option if the<\/div>\n<\/div>\n<\/div>\n
\n
\n
market goes way below the strike price<\/div>\n<\/div>\n<\/div>\n
\n
\n
of the put option the buyer of that put<\/div>\n<\/div>\n<\/div>\n
\n
\n
option has the right to sell his shares<\/div>\n<\/div>\n<\/div>\n
\n
\n
of that stock at the strike price of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
put option that he’s bought even if the<\/div>\n<\/div>\n<\/div>\n
\n
\n
stock price has gone way below the<\/div>\n<\/div>\n<\/div>\n
\n
\n
strike price of the put which of course<\/div>\n<\/div>\n<\/div>\n
\n
\n
saves him a lot of money compared to<\/div>\n<\/div>\n<\/div>\n
\n
\n
where he did not own the put and he<\/div>\n<\/div>\n<\/div>\n
\n
\n
stuck suffering a much larger loss on<\/div>\n<\/div>\n<\/div>\n
\n
\n
his shares because their prices gone way<\/div>\n<\/div>\n<\/div>\n
\n
\n
below what they were worth before he had<\/div>\n<\/div>\n<\/div>\n
\n
\n
no protection against that happening so<\/div>\n<\/div>\n<\/div>\n
\n
\n
those are the basics of call and put<\/div>\n<\/div>\n<\/div>\n
\n
\n
options okay so let’s look at an example<\/div>\n<\/div>\n<\/div>\n
\n
\n
now of a real-life situation that you<\/div>\n<\/div>\n<\/div>\n
\n
\n
could have gotten yourself into if you<\/div>\n<\/div>\n<\/div>\n
\n
\n
didn’t know better here’s Facebook<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading at 217 a few years back at that<\/div>\n<\/div>\n<\/div>\n
\n
\n
time that was an all-time high and so<\/div>\n<\/div>\n<\/div>\n
\n
\n
let’s say you were bullish on this stock<\/div>\n<\/div>\n<\/div>\n
\n
\n
and felt there was more upside so on<\/div>\n<\/div>\n<\/div>\n
\n
\n
this day as you can see you could have<\/div>\n<\/div>\n<\/div>\n
\n
\n
bought Facebook 220 calls for two<\/div>\n<\/div>\n<\/div>\n
\n
\n
dollars and 80 cents and if you look<\/div>\n<\/div>\n<\/div>\n
\n
\n
down on the put side you’ll see that the<\/div>\n<\/div>\n<\/div>\n
\n
\n
210 put happens to be priced for exactly<\/div>\n<\/div>\n<\/div>\n
\n
\n
the same price two dollars and 80 cents<\/div>\n<\/div>\n<\/div>\n
\n
\n
so you figured hey I’m bullish on<\/div>\n<\/div>\n<\/div>\n
\n
\n
Facebook and I can buy that call for 280<\/div>\n<\/div>\n<\/div>\n
\n
\n
so since each of these call options<\/div>\n<\/div>\n<\/div>\n
\n
\n
represents my right to buy a hundred<\/div>\n<\/div>\n<\/div>\n
\n
\n
shares of Facebook at 220 I’ll pay two<\/div>\n<\/div>\n<\/div>\n
\n
\n
hundred eighty dollars which is what the<\/div>\n<\/div>\n<\/div>\n
\n
\n
two dollars and 80 cents represents at<\/div>\n<\/div>\n<\/div>\n
\n
\n
the same time though I’m selling the 210<\/div>\n<\/div>\n<\/div>\n
\n
\n
put option which happens to be at the<\/div>\n<\/div>\n<\/div>\n
\n
\n
exact same price as the 220 call on this<\/div>\n<\/div>\n<\/div>\n
\n
\n
day and so in this case I’m gonna<\/div>\n<\/div>\n<\/div>\n
\n
\n
receive two dollars and 80 cents times<\/div>\n<\/div>\n<\/div>\n
\n
\n
100 for the hundred shares that each<\/div>\n<\/div>\n<\/div>\n
\n
\n
option represents and so I’m gonna<\/div>\n<\/div>\n<\/div>\n
\n
\n
receive two hundred eighty dollars for<\/div>\n<\/div>\n<\/div>\n
\n
\n
selling that foot so the cost of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
call was offset by the cash we received<\/div>\n<\/div>\n<\/div>\n
\n
\n
for selling the put so we own the call<\/div>\n<\/div>\n<\/div>\n
\n
\n
for free right I mean after all there<\/div>\n<\/div>\n<\/div>\n
\n
\n
was no cash flowing out of my account<\/div>\n<\/div>\n<\/div>\n
\n
\n
after this transaction right I mean<\/div>\n<\/div>\n<\/div>\n
\n
\n
everyone loves stuff for free right but<\/div>\n<\/div>\n<\/div>\n
\n
\n
this is a ridiculous concept that<\/div>\n<\/div>\n<\/div>\n
\n
\n
misleads people and we’ve got to work<\/div>\n<\/div>\n<\/div>\n
\n
\n
through why this concept is very very<\/div>\n<\/div>\n<\/div>\n
\n
\n
misleading well first of all you could<\/div>\n<\/div>\n<\/div>\n
\n
\n
say that there are a lot of things you<\/div>\n<\/div>\n<\/div>\n
\n
\n
can get for free<\/div>\n<\/div>\n<\/div>\n
\n
\n
for example suppose I have a ticking<\/div>\n<\/div>\n<\/div>\n
\n
\n
time bomb in my hands I could give that<\/div>\n<\/div>\n<\/div>\n
\n
\n
to you for free right so<\/div>\n<\/div>\n<\/div>\n
\n
\n
now you have something for free<\/div>\n<\/div>\n<\/div>\n
\n
\n
something for free that could blow you<\/div>\n<\/div>\n<\/div>\n
\n
\n
into the next county but still it’s for<\/div>\n<\/div>\n<\/div>\n
\n
\n
free so it’s not necessarily good to<\/div>\n<\/div>\n<\/div>\n
\n
\n
have something for free but just because<\/div>\n<\/div>\n<\/div>\n
\n
\n
something is free of cash flow doesn’t<\/div>\n<\/div>\n<\/div>\n
\n
\n
mean it’s free of risk and that’s the<\/div>\n<\/div>\n<\/div>\n
\n
\n
fallacy of this concept that you’re<\/div>\n<\/div>\n<\/div>\n
\n
\n
about to see a vivid example now before<\/div>\n<\/div>\n<\/div>\n
\n
\n
we get into why it can sometimes be a<\/div>\n<\/div>\n<\/div>\n
\n
\n
very bad idea to own an option for free<\/div>\n<\/div>\n<\/div>\n
\n
\n
I wanted to let you know that there<\/div>\n<\/div>\n<\/div>\n
\n
\n
really are sound techniques for trading<\/div>\n<\/div>\n<\/div>\n
\n
\n
options for income and in fact we’re<\/div>\n<\/div>\n<\/div>\n
\n
\n
currently running a two our free<\/div>\n<\/div>\n<\/div>\n
\n
\n
intensive workshop at the moment where<\/div>\n<\/div>\n<\/div>\n
\n
\n
we’ll be teaching you three of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
strategies that real professional<\/div>\n<\/div>\n<\/div>\n
\n
\n
options traders use including our really<\/div>\n<\/div>\n<\/div>\n
\n
\n
simple but incredibly effective strategy<\/div>\n<\/div>\n<\/div>\n
\n
\n
that some of the greatest investors in<\/div>\n<\/div>\n<\/div>\n
\n
\n
the world like Warren Buffett use all<\/div>\n<\/div>\n<\/div>\n
\n
\n
the time plus an options trading<\/div>\n<\/div>\n<\/div>\n
\n
\n
strategy that has a statistical 80<\/div>\n<\/div>\n<\/div>\n
\n
\n
percent probability of profit month in<\/div>\n<\/div>\n<\/div>\n
\n
\n
and month out plus an option strategy<\/div>\n<\/div>\n<\/div>\n
\n
\n
that you can employ with the stock that<\/div>\n<\/div>\n<\/div>\n
\n
\n
you like where you’ll make your target<\/div>\n<\/div>\n<\/div>\n
\n
\n
profit whether this stock goes up goes<\/div>\n<\/div>\n<\/div>\n
\n
\n
nowhere or even goes down a small<\/div>\n<\/div>\n<\/div>\n
\n
\n
percentage so if those are strategies<\/div>\n<\/div>\n<\/div>\n
\n
\n
that would be of interest to you then<\/div>\n<\/div>\n<\/div>\n
\n
\n
you should check out the free options<\/div>\n<\/div>\n<\/div>\n
\n
\n
class that we’re currently running just<\/div>\n<\/div>\n<\/div>\n
\n
\n
go ahead and click the link that should<\/div>\n<\/div>\n<\/div>\n
\n
\n
be appearing right now at the top right<\/div>\n<\/div>\n<\/div>\n
\n
\n
corner of your screen that will open a<\/div>\n<\/div>\n<\/div>\n
\n
\n
free registration page in a new window<\/div>\n<\/div>\n<\/div>\n
\n
\n
so don’t worry you won’t lose this video<\/div>\n<\/div>\n<\/div>\n
\n
\n
or you could just head on over to<\/div>\n<\/div>\n<\/div>\n
\n
\n
options class com to register for this<\/div>\n<\/div>\n<\/div>\n
\n
\n
free intensive workshop it’s a rare<\/div>\n<\/div>\n<\/div>\n
\n
\n
opportunity for retail traders and<\/div>\n<\/div>\n<\/div>\n
\n
\n
investors to learn directly from Wall<\/div>\n<\/div>\n<\/div>\n
\n
\n
Street traders but that’s exactly what<\/div>\n<\/div>\n<\/div>\n
\n
\n
you’ll be getting through this free<\/div>\n<\/div>\n<\/div>\n
\n
\n
online workshop so click the link to<\/div>\n<\/div>\n<\/div>\n
\n
\n
sign up now and don’t miss it<\/div>\n<\/div>\n<\/div>\n
\n
\n
okay so here’s the thing traders find<\/div>\n<\/div>\n<\/div>\n
\n
\n
the idea of buying a call very<\/div>\n<\/div>\n<\/div>\n
\n
\n
attractive because it helps them to<\/div>\n<\/div>\n<\/div>\n
\n
\n
control the risk of a trade so when you<\/div>\n<\/div>\n<\/div>\n
\n
\n
buy the call for two dollars and 80<\/div>\n<\/div>\n<\/div>\n
\n
\n
cents here in other words you spend 280<\/div>\n<\/div>\n<\/div>\n
\n
\n
and if Facebook doesn’t get beyond the<\/div>\n<\/div>\n<\/div>\n
\n
\n
strike price of the call by expiration<\/div>\n<\/div>\n<\/div>\n
\n
\n
day then the call just expires worthless<\/div>\n<\/div>\n<\/div>\n
\n
\n
and you’ve lost $280 and no more now I<\/div>\n<\/div>\n<\/div>\n
\n
\n
know you don’t get into trades to lose<\/div>\n<\/div>\n<\/div>\n
\n
\n
money<\/div>\n<\/div>\n<\/div>\n
\n
\n
but the fact is that the worse they can<\/div>\n<\/div>\n<\/div>\n
\n
\n
get for you is the loss of $280 which is<\/div>\n<\/div>\n<\/div>\n
\n
\n
what you originally put up to buy the<\/div>\n<\/div>\n<\/div>\n
\n
\n
call but then when you try to get cute<\/div>\n<\/div>\n<\/div>\n
\n
\n
and you don’t even want to pay $280 for<\/div>\n<\/div>\n<\/div>\n
\n
\n
the call you want to pay nothing for the<\/div>\n<\/div>\n<\/div>\n
\n
\n
call and have it for what you’re calling<\/div>\n<\/div>\n<\/div>\n
\n
\n
free and here’s the important part so<\/div>\n<\/div>\n<\/div>\n
\n
\n
please focus on this at that point<\/div>\n<\/div>\n<\/div>\n
\n
\n
you’ve completely changed the<\/div>\n<\/div>\n<\/div>\n
\n
\n
risk\/reward<\/div>\n<\/div>\n<\/div>\n
\n
\n
dynamic of the trade now why do I say<\/div>\n<\/div>\n<\/div>\n
\n
\n
that well that goes to the fundamental<\/div>\n<\/div>\n<\/div>\n
\n
\n
nature of options a call option is a<\/div>\n<\/div>\n<\/div>\n
\n
\n
right to buy shares so the worst that<\/div>\n<\/div>\n<\/div>\n
\n
\n
happens is that you don’t exercise that<\/div>\n<\/div>\n<\/div>\n
\n
\n
right because Facebook never gets beyond<\/div>\n<\/div>\n<\/div>\n
\n
\n
225 and the call never has any value<\/div>\n<\/div>\n<\/div>\n
\n
\n
because you’re not going to exercise<\/div>\n<\/div>\n<\/div>\n
\n
\n
your right to buy shares at 225 when the<\/div>\n<\/div>\n<\/div>\n
\n
\n
stock is trading for less than that<\/div>\n<\/div>\n<\/div>\n
\n
\n
obviously so you don’t exercise that<\/div>\n<\/div>\n<\/div>\n
\n
\n
right and therefore you just blew $280<\/div>\n<\/div>\n<\/div>\n
\n
\n
but if you’ve also sold that put then<\/div>\n<\/div>\n<\/div>\n
\n
\n
while you may feel better because there<\/div>\n<\/div>\n<\/div>\n
\n
\n
was no cash outlay for the call and you<\/div>\n<\/div>\n<\/div>\n
\n
\n
could make a lot of money at Facebook<\/div>\n<\/div>\n<\/div>\n
\n
\n
rally quite a bit you inadvertently took<\/div>\n<\/div>\n<\/div>\n
\n
\n
on a huge risk that you weren’t thinking<\/div>\n<\/div>\n<\/div>\n
\n
\n
about all because you were trying to<\/div>\n<\/div>\n<\/div>\n
\n
\n
avoid shelling out $280 for the call so<\/div>\n<\/div>\n<\/div>\n
\n
\n
let’s take a look at what actually did<\/div>\n<\/div>\n<\/div>\n
\n
\n
happen on this trade so as it turns out<\/div>\n<\/div>\n<\/div>\n
\n
\n
Facebook sold off badly and on the day<\/div>\n<\/div>\n<\/div>\n
\n
\n
the option expired Facebook closed at<\/div>\n<\/div>\n<\/div>\n
\n
\n
170 489 about 43 points below where<\/div>\n<\/div>\n<\/div>\n
\n
\n
Facebook was trading when you enter the<\/div>\n<\/div>\n<\/div>\n
\n
\n
trade and worse 35 points below the<\/div>\n<\/div>\n<\/div>\n
\n
\n
strike price of the foot we sold so<\/div>\n<\/div>\n<\/div>\n
\n
\n
let’s break down how this trade ended so<\/div>\n<\/div>\n<\/div>\n
\n
\n
remember we started out with zero cash<\/div>\n<\/div>\n<\/div>\n
\n
\n
outlay because the price of the put we<\/div>\n<\/div>\n<\/div>\n
\n
\n
sold offset the cost of the call we<\/div>\n<\/div>\n<\/div>\n
\n
\n
bought well that was where the good news<\/div>\n<\/div>\n<\/div>\n
\n
\n
ended because with the stock selling off<\/div>\n<\/div>\n<\/div>\n
\n
\n
to 170 489 the owner of that put is<\/div>\n<\/div>\n<\/div>\n
\n
\n
obviously going to exercise that put at<\/div>\n<\/div>\n<\/div>\n
\n
\n
210 because the shares he has which are<\/div>\n<\/div>\n<\/div>\n
\n
\n
now worth 170 489 he can sell them to<\/div>\n<\/div>\n<\/div>\n
\n
\n
you for $35 per share higher than<\/div>\n<\/div>\n<\/div>\n
\n
\n
they’re worth so he can dump his shares<\/div>\n<\/div>\n<\/div>\n
\n
\n
on you for 210 and you’ll be the proud<\/div>\n<\/div>\n<\/div>\n
\n
\n
owner of a hundred shares of Facebook<\/div>\n<\/div>\n<\/div>\n
\n
\n
stock for 210 when they’re trading at<\/div>\n<\/div>\n<\/div>\n
\n
\n
174 so you immediately take a loss of<\/div>\n<\/div>\n<\/div>\n
\n
\n
$35 per share the crucial takeaway here<\/div>\n<\/div>\n<\/div>\n
\n
\n
is that the trader did not at all<\/div>\n<\/div>\n<\/div>\n
\n
\n
appreciate that by being a<\/div>\n<\/div>\n<\/div>\n
\n
\n
go go around bragging to his friends<\/div>\n<\/div>\n<\/div>\n
\n
\n
that he was able to structure a trade<\/div>\n<\/div>\n<\/div>\n
\n
\n
where he bought a call for free he put<\/div>\n<\/div>\n<\/div>\n
\n
\n
himself into an incredibly dangerous<\/div>\n<\/div>\n<\/div>\n
\n
\n
position because he didn’t think through<\/div>\n<\/div>\n<\/div>\n
\n
\n
the fact that he had completely altered<\/div>\n<\/div>\n<\/div>\n
\n
\n
the risk\/reward nature of the trade by<\/div>\n<\/div>\n<\/div>\n
\n
\n
selling that put in other words to save<\/div>\n<\/div>\n<\/div>\n
\n
\n
himself a lousy $280 on the call he put<\/div>\n<\/div>\n<\/div>\n
\n
\n
himself into a position where he lost<\/div>\n<\/div>\n<\/div>\n
\n
\n
over 3500 bucks in other words he took a<\/div>\n<\/div>\n<\/div>\n
\n
\n
limited risk situation and turn it into<\/div>\n<\/div>\n<\/div>\n
\n
\n
an extremely risky situation by virtue<\/div>\n<\/div>\n<\/div>\n
\n
\n
of the fact that he didn’t realize that<\/div>\n<\/div>\n<\/div>\n
\n
\n
the risk of selling the put was in a<\/div>\n<\/div>\n<\/div>\n
\n
\n
sense the cost of owning the call for<\/div>\n<\/div>\n<\/div>\n
\n
\n
free he was trading upfront cost for a<\/div>\n<\/div>\n<\/div>\n
\n
\n
huge risk and all he was thinking about<\/div>\n<\/div>\n<\/div>\n
\n
\n
was how he drove his upfront cost down<\/div>\n<\/div>\n<\/div>\n
\n
\n
to zero look I used to be in the<\/div>\n<\/div>\n<\/div>\n
\n
\n
insurance business and we insured<\/div>\n<\/div>\n<\/div>\n
\n
\n
people’s houses for fire insurance so<\/div>\n<\/div>\n<\/div>\n
\n
\n
suppose someone asked me to insure their<\/div>\n<\/div>\n<\/div>\n
\n
\n
house which let’s say it’s worth<\/div>\n<\/div>\n<\/div>\n
\n
\n
$100,000 and they wanted me to insure<\/div>\n<\/div>\n<\/div>\n
\n
\n
for five hundred bucks and I took that<\/div>\n<\/div>\n<\/div>\n
\n
\n
cash and I bought a lawn mower for five<\/div>\n<\/div>\n<\/div>\n
\n
\n
hundred dollars with that cash then I<\/div>\n<\/div>\n<\/div>\n
\n
\n
just buy a lawn mower for free well kind<\/div>\n<\/div>\n<\/div>\n
\n
\n
of I got cash from you and bought the<\/div>\n<\/div>\n<\/div>\n
\n
\n
lawn mower and ended up with the same<\/div>\n<\/div>\n<\/div>\n
\n
\n
amount of cash as I had before you gave<\/div>\n<\/div>\n<\/div>\n
\n
\n
me the $500 yet I’m up one lawn mower<\/div>\n<\/div>\n<\/div>\n
\n
\n
but I’m on the hook for $100,000 if your<\/div>\n<\/div>\n<\/div>\n
\n
\n
house burns down so did I get that lawn<\/div>\n<\/div>\n<\/div>\n
\n
\n
mower for free this is the same thing<\/div>\n<\/div>\n<\/div>\n
\n
\n
when you sell an option you’re entering<\/div>\n<\/div>\n<\/div>\n
\n
\n
into an obligation if you don’t<\/div>\n<\/div>\n<\/div>\n
\n
\n
understand that obligation you have no<\/div>\n<\/div>\n<\/div>\n
\n
\n
business trading options what was really<\/div>\n<\/div>\n<\/div>\n
\n
\n
wrong here was not that the trader made<\/div>\n<\/div>\n<\/div>\n
\n
\n
the trade the problem was that he didn’t<\/div>\n<\/div>\n<\/div>\n
\n
\n
understand the implications of the risk<\/div>\n<\/div>\n<\/div>\n
\n
\n
of the trade which he had no business<\/div>\n<\/div>\n<\/div>\n
\n
\n
doing because he didn’t understand what<\/div>\n<\/div>\n<\/div>\n
\n
\n
he was doing so the moral of the story<\/div>\n<\/div>\n<\/div>\n
\n
\n
is that you have to look at the full<\/div>\n<\/div>\n<\/div>\n
\n
\n
risk reward picture of every options<\/div>\n<\/div>\n<\/div>\n
\n
\n
trade you can’t just look at the upfront<\/div>\n<\/div>\n<\/div>\n
\n
\n
cash flow of the trade without<\/div>\n<\/div>\n<\/div>\n
\n
\n
understanding the risks of that position<\/div>\n<\/div>\n<\/div>\n
\n
\n
in this case you took a $280 risk and<\/div>\n<\/div>\n<\/div>\n
\n
\n
turn it into a risk more than ten times<\/div>\n<\/div>\n<\/div>\n
\n
\n
greater than that because you didn’t<\/div>\n<\/div>\n<\/div>\n
\n
\n
understand the ramifications of selling<\/div>\n<\/div>\n<\/div>\n
\n
\n
that put to put yourself into a cash<\/div>\n<\/div>\n<\/div>\n
\n
\n
flow free position just looking at the<\/div>\n<\/div>\n<\/div>\n
\n
\n
cash<\/div>\n<\/div>\n<\/div>\n
\n
\n
is extremely foolish and it’s a really<\/div>\n<\/div>\n<\/div>\n
\n
\n
good way to turn a large fortune into a<\/div>\n<\/div>\n<\/div>\n
\n
\n
small fortune professional traders the<\/div>\n<\/div>\n<\/div>\n
\n
\n
ones who do this for a living<\/div>\n<\/div>\n<\/div>\n
\n
\n
hardly even acknowledge the cash flow<\/div>\n<\/div>\n<\/div>\n
\n
\n
aspect of an options trade they focus on<\/div>\n<\/div>\n<\/div>\n
\n
\n
the full risk reward trade offs of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
option strategy that they’re<\/div>\n<\/div>\n<\/div>\n
\n
\n
implementing and then take sensible<\/div>\n<\/div>\n<\/div>\n
\n
\n
steps based on that risk reward profile<\/div>\n<\/div>\n<\/div>\n
\n
\n
if you want to become a professional<\/div>\n<\/div>\n<\/div>\n
\n
\n
trader that’s how you’ll need to think<\/div>\n<\/div>\n<\/div>\n
\n
\n
also so by now I hope that you see why<\/div>\n<\/div>\n<\/div>\n
\n
\n
we call this an options trading blunder<\/div>\n<\/div>\n<\/div>\n
\n
\n
and to be clear it’s only a blunder if<\/div>\n<\/div>\n<\/div>\n
\n
\n
you don’t understand the risks you’re<\/div>\n<\/div>\n<\/div>\n
\n
\n
taking on if you’re bragging about the<\/div>\n<\/div>\n<\/div>\n
\n
\n
zero cash flow of owning the call then<\/div>\n<\/div>\n<\/div>\n
\n
\n
you are most likely not understanding<\/div>\n<\/div>\n<\/div>\n
\n
\n
the risk you’ve taken on and you<\/div>\n<\/div>\n<\/div>\n
\n
\n
shouldn’t be in the trade at all so<\/div>\n<\/div>\n<\/div>\n
\n
\n
don’t fall into this trap it would be a<\/div>\n<\/div>\n<\/div>\n
\n
\n
sign of unprofessional trading now just<\/div>\n<\/div>\n<\/div>\n
\n
\n
to remind you as I said earlier if you<\/div>\n<\/div>\n<\/div>\n
\n
\n
enjoyed this video and learn something<\/div>\n<\/div>\n<\/div>\n
\n
\n
valuable from it and you’d like to learn<\/div>\n<\/div>\n<\/div>\n
\n
\n
the details of three real-world option<\/div>\n<\/div>\n<\/div>\n
\n
\n
strategies the professional options<\/div>\n<\/div>\n<\/div>\n
\n
\n
traders use all the time then you should<\/div>\n<\/div>\n<\/div>\n
\n
\n
check out the free options class that<\/div>\n<\/div>\n<\/div>\n
\n
\n
we’re currently running just go ahead<\/div>\n<\/div>\n<\/div>\n
\n
\n
and click the link that should be<\/div>\n<\/div>\n<\/div>\n
\n
\n
appearing now at the top right corner of<\/div>\n<\/div>\n<\/div>\n
\n
\n
your screen that will open the free<\/div>\n<\/div>\n<\/div>\n
\n
\n
registration page in a new window so you<\/div>\n<\/div>\n<\/div>\n
\n
\n
won’t lose this video don’t worry or you<\/div>\n<\/div>\n<\/div>\n
\n
\n
can just head on over to options class<\/div>\n<\/div>\n<\/div>\n
\n
\n
com to register for this free intensive<\/div>\n<\/div>\n<\/div>\n
\n
\n
workshop it’s really a rare opportunity<\/div>\n<\/div>\n<\/div>\n
\n
\n
for retail traders and investors to<\/div>\n<\/div>\n<\/div>\n
\n
\n
learn directly from Wall Street traders<\/div>\n<\/div>\n<\/div>\n
\n
\n
but that’s exactly what you’ll be<\/div>\n<\/div>\n<\/div>\n
\n
\n
getting through this free online<\/div>\n<\/div>\n<\/div>\n
\n
\n
workshop so click the link to sign up<\/div>\n<\/div>\n<\/div>\n
\n
\n
now and don’t miss it and please don’t<\/div>\n<\/div>\n<\/div>\n
\n
\n
forget to click on the subscribe button<\/div>\n<\/div>\n<\/div>\n
\n
\n
right now so you won’t miss the next<\/div>\n<\/div>\n<\/div>\n
\n
\n
episode of huge options trading blunders<\/div>\n<\/div>\n<\/div>\n
\n
\n
and all the other free trading videos<\/div>\n<\/div>\n<\/div>\n
\n
\n
that we’re posting constantly on our<\/div>\n<\/div>\n<\/div>\n
\n
\n
channel to help you to improve your game<\/div>\n<\/div>\n<\/div>\n
\n
\n
as an options trader<\/div>\n<\/div>\n<\/div>\n
\n
\n
<\/div><\/div>\n<\/div>\n<\/div>\n

\"\"<\/a><\/p>\n

* no relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"

This video is the first of a series of ten videos that we’ll be producing as cautionary warnings about the largest mistakes that options traders make and how they can rectify those mistakes. The first Options blunder we’ll cover in this video is about the disastrous consequences of getting cocky and sizing up too quickly as an options income trader. … Read More<\/a><\/p>\n","protected":false},"author":290,"featured_media":49535,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[4189],"tags":[],"class_list":["post-49533","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-free-daily-trading-video","post_format-post-format-video"],"yoast_head":"\nHuge Options Trading Blunders Series: Owning Long Options for \u201cFree\u201d (episode 2) | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Huge Options Trading Blunders Series: Owning Long Options for \u201cFree\u201d (episode 2) | SMB Training\" \/>\n<meta property=\"og:description\" content=\"This video is the first of a series of ten videos that we’ll be producing as cautionary warnings about the largest mistakes that options traders make and how they can rectify those mistakes. The first Options blunder we’ll cover in this video is about the disastrous consequences of getting cocky and sizing up too quickly as an options income trader. ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-01-23T13:35:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2020\/01\/own-options-for-free-options-blunder-2-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"smbcapital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"smbcapital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"14 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2\"},\"author\":{\"name\":\"smbcapital\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/57cc9affbbb6763e0012594ad884b25a\"},\"headline\":\"Huge Options Trading Blunders Series: Owning Long Options for \u201cFree\u201d (episode 2)\",\"datePublished\":\"2020-01-23T13:35:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2\"},\"wordCount\":2833,\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2020\/01\/own-options-for-free-options-blunder-2-1.jpg\",\"articleSection\":[\"Free Daily Trading Video\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2\",\"name\":\"Huge Options Trading Blunders Series: Owning Long Options for \u201cFree\u201d (episode 2) | SMB Training\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2020\/01\/own-options-for-free-options-blunder-2-1.jpg\",\"datePublished\":\"2020-01-23T13:35:06+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#primaryimage\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2020\/01\/own-options-for-free-options-blunder-2-1.jpg\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2020\/01\/own-options-for-free-options-blunder-2-1.jpg\",\"width\":1920,\"height\":1080},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.smbtraining.com\/blog\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Huge Options Trading Blunders Series: Owning Long Options for \u201cFree\u201d (episode 2)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"name\":\"SMB Training Blog\",\"description\":\"Lessons from the trading desk\",\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\",\"name\":\"SMB Training\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"width\":230,\"height\":81,\"caption\":\"SMB Training\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/smbcap\/\",\"https:\/\/x.com\/smbcapital\",\"https:\/\/www.youtube.com\/user\/smbcapital\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/57cc9affbbb6763e0012594ad884b25a\",\"name\":\"smbcapital\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/author\/smbcapital\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Huge Options Trading Blunders Series: Owning Long Options for \u201cFree\u201d (episode 2) | SMB Training","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2","og_locale":"en_US","og_type":"article","og_title":"Huge Options Trading Blunders Series: Owning Long Options for \u201cFree\u201d (episode 2) | SMB Training","og_description":"This video is the first of a series of ten videos that we’ll be producing as cautionary warnings about the largest mistakes that options traders make and how they can rectify those mistakes. The first Options blunder we’ll cover in this video is about the disastrous consequences of getting cocky and sizing up too quickly as an options income trader. ... Read More","og_url":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2","og_site_name":"SMB Training Blog","article_publisher":"https:\/\/www.facebook.com\/smbcap\/","article_published_time":"2020-01-23T13:35:06+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2020\/01\/own-options-for-free-options-blunder-2-1.jpg","type":"image\/jpeg"}],"author":"smbcapital","twitter_card":"summary_large_image","twitter_creator":"@smbcapital","twitter_site":"@smbcapital","twitter_misc":{"Written by":"smbcapital","Est. reading time":"14 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#article","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2"},"author":{"name":"smbcapital","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/57cc9affbbb6763e0012594ad884b25a"},"headline":"Huge Options Trading Blunders Series: Owning Long Options for \u201cFree\u201d (episode 2)","datePublished":"2020-01-23T13:35:06+00:00","mainEntityOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2"},"wordCount":2833,"publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#primaryimage"},"thumbnailUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2020\/01\/own-options-for-free-options-blunder-2-1.jpg","articleSection":["Free Daily Trading Video"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2","url":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2","name":"Huge Options Trading Blunders Series: Owning Long Options for \u201cFree\u201d (episode 2) | SMB Training","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#primaryimage"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#primaryimage"},"thumbnailUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2020\/01\/own-options-for-free-options-blunder-2-1.jpg","datePublished":"2020-01-23T13:35:06+00:00","breadcrumb":{"@id":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#primaryimage","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2020\/01\/own-options-for-free-options-blunder-2-1.jpg","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2020\/01\/own-options-for-free-options-blunder-2-1.jpg","width":1920,"height":1080},{"@type":"BreadcrumbList","@id":"https:\/\/www.smbtraining.com\/blog\/huge-options-trading-blunders-series-owning-long-options-for-free-episode-2#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.smbtraining.com\/blog"},{"@type":"ListItem","position":2,"name":"Huge Options Trading Blunders Series: Owning Long Options for \u201cFree\u201d (episode 2)"}]},{"@type":"WebSite","@id":"https:\/\/www.smbtraining.com\/blog\/#website","url":"https:\/\/www.smbtraining.com\/blog\/","name":"SMB Training Blog","description":"Lessons from the trading desk","publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.smbtraining.com\/blog\/#organization","name":"SMB Training","url":"https:\/\/www.smbtraining.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","width":230,"height":81,"caption":"SMB Training"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/smbcap\/","https:\/\/x.com\/smbcapital","https:\/\/www.youtube.com\/user\/smbcapital"]},{"@type":"Person","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/57cc9affbbb6763e0012594ad884b25a","name":"smbcapital","url":"https:\/\/www.smbtraining.com\/blog\/author\/smbcapital"}]}},"_links":{"self":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/49533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/users\/290"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/comments?post=49533"}],"version-history":[{"count":1,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/49533\/revisions"}],"predecessor-version":[{"id":49536,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/49533\/revisions\/49536"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/media\/49535"}],"wp:attachment":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/media?parent=49533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/categories?post=49533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/tags?post=49533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}