Options Education for Regards and Degens
Step into the exciting world of options with Options Royale—your last option for getting rich, where all bets are ON! Here you’ll find tools and resources for highly regarded investors and degenerates alike. Whether you work on Wall Street or behind the Wendy’s, we’ll help you turn trades into tendies.
Options Trading Guides for Dummies Regards
What Are Options? (Explained with an Analogy)
“An option contract gives the holder the right but not the obligation to buy the underlying equity at a specified price.”
Screech! How many times have you tried to learn about options trading only to find some neanderthal definition like that above? “WTF!” you exclaim to yourself. Then you DM me via Reddit, asking me to explain, interrupting my morning session with PornHub.
Let’s put an end to the DMs now. I’ll explain options so a five-year-old can understand. Given that you work behind the Wendy’s, I’ll assume you are at least five years old.
Imagine there’s a mine near your home and it has gold in it. We’ll call gold the underlying equity. We can even give it a ticker: GOLD. Let’s pretend that gold is currently selling at $2,500 per ounce, and it’s assumed that it will increase in value. If you can get your hands on some gold, you might make some money.
But you don’t have the means to get the gold—$2,500 per ounce is out of your price range. You also don’t have the equipment to go find and extract it yourself. BUT it just so happens that the owner of the gold mine near your house is selling claims to his mine.
A claim would give you the legal right to extract gold from the mine. And he’s selling his claims for cheap. The catch is they expire. As long as you possess the claim, you can try to get the gold and profit from it. But as soon as the claim expires, you’re SOL.
A claim is just a piece of paper—a legal document that makes it clear you have rights to extract the underlying asset for a given period of time. But now let’s imagine this claim is transferrable, or resalable. Do you see where this is going? If gold goes up in value, what’s gonna happen to the value of that claim? And what will happen to it if gold goes down in value? Never mind whether gold changes in value, what if there’s hype about gold—news, chatter, etc? Hype alone can affect the value of your claim.
Because the claim has value, you don’t have to dig for gold at all. You can resell the claim, let someone else try to profit from digging or speculating. And if your claim should expire before you resell or go digging yourself? Well, you just lost whatever you spent on that piece of paper that is now worthless.
Options contracts are to equities as claims are to mines and the materials therein. With mines, the claim changes in value as the underground commodity changes in (perceived) value. With options, the contract changes in value as the underlying equity changes in (perceived) value.
We’ll stop there. That should give you a fundamental understanding of what you’re working with should you enter the world of options trading. You can find more information—about strategies and terms—in our online guides.
Options Glossary
Get familiar with options terminology while sipping Corona Familiar—or Everclear, for the matter. You don’t need a degree in macroeconomics to make sense of our financial glossaries, market reports, and options guides, you just need to be less moronic than Jim Cramer. You can tie your shoes, right?
Tools for Traders: Options Profit Calculator (Launching in 2025)
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About the Options Royale Team
We were gumming coca alkali and cutting through the enamel on our teeth when you were cutting snowflakes in pre-K hoping your mother would pin them on the refrigerator only to find them in the toilet. Don’t fret, we all come from something.
We came from the school of hard rocks. And it was being caught between that and the middleclass lives we had built in the middleclass meatgrinder that led us to the market. Sanity had reached its tipping point. Solvency was slim. There was a resolute refusal to settle for less. YOLO.
This should all be starting to sink in, sound familiar. The point is, we’re not Investopedia. We don’t hold esteemed positions with one of the FAANG. We’ve nothing to do with Forbes, nor do we have any ambitions of getting published there so we can put a logo on our website to “prove” our credibility. Fuck that.
We’re average blokes with a penchant for risk and little tolerance for pussyfootin’ corporate policy and the shady shenanigans that seem to govern our world. The game may be rigged, but that doesn’t mean you can’t win. You’ll never beat the house, but you can make a winning, and take your winnings.
We started Options Royale to win what we can and help you do the same.
FAQ’s
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If this calculator makes your brain hurt, you may actually qualify for disability assistance. We've made it so simple a regard could use it.
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While we can't promise you seer-level insights, we can definitely help you crunch those numbers and make more informed decisions. The crystal ball is in the shop, unfortunately.
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Pretty much...