Kardec TraderFutures Trader. Creator of The Midas Touch. Mentor

SIMPLE Options Trading Strategy REVEALED (MUST WATCH)🚨

3 Nov 2025 · 1 min

Watch on YouTube

1:17

A short instructional segment explaining a simple options trading example using AMD stock. The speaker demonstrates buying call option contracts (100 shares per contract), calculating premiums and profits when the underlying stock rises, and contrasts exercising options vs. flipping the premium for near-term gains.

Questions this video answers

AMD

$95

$97

One week

$0.50 per share (i.e., $0.50 × 100 = $50 per contract)

Chapters

Amd stock, let's say is trading at $95 and the strike price is going to be 97. Our expiration one week out price of the contract, 50 cents. Each contract equals 100 shares. That's universal. Those premiums. Let's say if you buy one contract it's going to be $0.50 times 100. If it's two contracts it's $0.50 times 200. Let's say the stock two days later moves up from 95 to $98. But now what happens is you have the opt go and get the stock at $95. Let's say I do something called exercise your right to buy the contracts at your set strike price which is 97. The person who sold you the contract would have to go into the market and buy it at 98 and then they would give it to you for $97. Now you're in a long position at $97 per each share. Now let's say I'm not one of those people who's going to exercise. I am looking to flip the premium which is this. So if the premium price, let's say moved up 3do and based on my delta, the equal price of this now is $1.50. So now I made a profit of $1 depending on how many contracts you have. And this is almost 100% return.