Invested Podcast | Options Review

I want to join your program
But I am 19 year-old and don't have enough money to go to atlanta because I'm from Malaysia.I hope one day you will make the free program in Malaysia.,?

Question:

So you buy a put to sell at an agreed price and sell a call for someone else to buy from you at an agreed price.

So is selling a put option the same as buying a call option? Whats the reverse? Or is that not a thing?

Buying options is a quick way to lose money but selling is a different story. I like selling puts, I can sell a put on a $50 stock with a strike price of $45 and make say $1 per option. So I get 10% downside protection while collecting $100 on a 30-45 day option contract or if you get put the stock at $45 you saved yourself 10% downside already basically buying at a discount while keeping the premium bringing your average cost of buying to $44. If you have an account size of 10k that $100 in premium is a 1% return roughly monthly so 8-12% a year while waiting to buy stocks at a discount. Thats my strategy as of now hopefully get a nice correction soon for some really nice discounts.

You don't have to own the stock to buy puts on a stock. You can buy puts on stock you own if you want to hedge it but if you don't own it your just playing the price of the option contract.

I don't understand, I buy when I want and sell when I want

Phil, I hope you see and answer this: You said the reasonable price for Chipotle is about $500-600 a share. It is NOW trading at around $460 with a PE ratio of 60!!! How, then, is your target price a reasonable price that reflects the value of the business? Thanks.

They will sell your stocks to make up the money if you owe

You described so called American options. The European options have a fixed due date and only then they can be exercised. Imagine what's going on on a so called witch sabbath in the European stock markets