If anyone has or does trade Options.. Can you explain this?

[tjanuranus]

NEver traded options before and this strategy is a bit confusing to an options noob. If anyone can break this down for a beginner i would appreciate it!

https://youtu.be/-X5f1aOeAeg

in 720p as well if selected.

[ReaperKK]

Alright so I'm a little drunk and I rarely trade options.

At the start of the video they are looking at the apple's chart and it's showing an ascending triangle pattern forming. Usually in a pattern like that (relating this to currency trading which is what I do) when price breaks through the resistance up top the price will continue going up.
 
Essentially the options strategy they are doing is called a Ratio Call. It's when you're holding a stock (for long) and you want to leverage yourself against that stock buy putting out an options contract.

Using the example the video shows:

If you buy at $25 at 380 (stock price) and you sell 2 strikes at $27 at the stock price of $410 then if the stock rises in price (like it appears that it will in the previous triangle). If the stock price jumps to $420 then you will have to provide 200 shares to the buyer at $410 while you get 100 shares for $380.

Hope that explains a bit.

Also you got pm.

[ReaperKK]

Nevermind your box is full

[tjanuranus]

It's empty now if you want to send me something. I appreciate the help.