What are options and covered warrants? - MoneyWeek Investment Tutorials

Options and covered warrants are two derivative products that have proved in recent times. Here, Tim Bennett explains what they are and the risks of using them.
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MoneyWeek videos are designed to help you become a better investor, and to give you a better understanding of the markets. They’re aimed at both beginners and more experienced investors.
In all our videos we explain things in an easy-to-understand way. Some videos are about important ideas and concepts. Others are about investment stories and themes in the news. The emphasis is on clarity and brevity. We don’t want to waste your time with a 20-minute video that could easily be so much shorter.
Related links…
- What are futures?
moneyweek.com/videos/video-tutorial-what-are-futures-14001/
- What is a swap?
moneyweek.com/videos/beginners-guide-to-investing-what-is-a-swap-12211/
- Why you should avoid structures products
moneyweek.com/videos/beginners-guide-to-investing-avoid-structured-products-10715/
- What are derivatives?
moneyweek.com/videos/video-tutorial-what-are-derivatives-56904/

Пікірлер: 203

  • @bekithembandebele8270
    @bekithembandebele82705 жыл бұрын

    Is this just me or this guy is just the best teacher there is. Thank you for taking some seemingly complex concepts and simplifying them. You really are good

  • @clarkzavier1521

    @clarkzavier1521

    2 жыл бұрын

    I know im asking the wrong place but does anyone know a tool to get back into an instagram account?? I was dumb lost the password. I love any tips you can give me!

  • @bekithembandebele8270

    @bekithembandebele8270

    2 жыл бұрын

    @@clarkzavier1521 I am not sure but is that not a thing a simple forget password would help you reset?

  • @Fred-zt5ky

    @Fred-zt5ky

    Жыл бұрын

    he’s an outstanding teacher indeed I learnt so much from him

  • @michz2256
    @michz22569 жыл бұрын

    THE BEST TEACHER ! I'M AN MBA GRADUATE AND I COME HERE TO REFRESH MY INFORMATION . THANK YOU FOR THE GREAT JOB YOU DO .

  • @MeneTekelUpharsin

    @MeneTekelUpharsin

    9 жыл бұрын

    mich Z Do you really make a lot more than 20 thousand/month or were you joking?

  • @jameslarsson8701

    @jameslarsson8701

    8 жыл бұрын

    +David Swaim binary options is a scam. if you win the company loses and they will not allow that.

  • @jameslarsson8701

    @jameslarsson8701

    8 жыл бұрын

    try to make a withdraw your capital and see if they give it to you. they won't. it is an ellusion. so bye bye to your money gambling

  • @michz2256

    @michz2256

    8 жыл бұрын

    +Michael Gray if you do you wouldn't be chasing people on KZread. Get lost

  • @warrend.okodamavoungou4073

    @warrend.okodamavoungou4073

    5 жыл бұрын

    James Larsson binary options are not normal options ! Yes, It is a scam because it’s the part with more money who wins this !

  • @dennixmaina
    @dennixmaina10 жыл бұрын

    with the Bahamas joke in the beginning lol

  • @rasaiyamahendran97

    @rasaiyamahendran97

    9 жыл бұрын

    Us

  • @mattomicgaming1859
    @mattomicgaming18597 жыл бұрын

    Absolutely incredible. I wish I had you as a lecturer at university! Please keep making these videos because they are amazing! It would be incredibly useful if you could teach us IFRS standards

  • @tehutimaat1647

    @tehutimaat1647

    5 жыл бұрын

    say it again please say it again ..we all the way in the bAck can't Hear you ...

  • @spi-phiquotes3923
    @spi-phiquotes39232 жыл бұрын

    I'm not a chronic KZread-commentator, but you, sir, are magnificent, not only at explaining, also at making the subject matter come alive in an exciting way. Thank you.

  • @prasannavi1911
    @prasannavi19116 жыл бұрын

    Whenever i am confused on understanding concepts, i ll start listening his videos..

  • @MoneyWeekVideos
    @MoneyWeekVideos12 жыл бұрын

    Thanks - but any more comments about me being cute and my wife will force me to present these videos with a bag over my head :)

  • @samuelspencer5047

    @samuelspencer5047

    3 жыл бұрын

    Lol tell her she does not need to worry she has your affections.

  • @bennymarshall1320

    @bennymarshall1320

    3 жыл бұрын

    You can reassure her it's sarcasm ;)

  • @kevinngugi154
    @kevinngugi1549 жыл бұрын

    You Are such a good explainer man, I watch all your videos

  • @AzhanAbdulRahim
    @AzhanAbdulRahim12 жыл бұрын

    Tim, I've been struggling with the topics of derivatives in my MBA; listened to three of your videos - all beautifully explained. Thank you.

  • @Harshamostwanted1
    @Harshamostwanted19 жыл бұрын

    Your explanation is simple!

  • @samuelspencer5047
    @samuelspencer50473 жыл бұрын

    @10:42 I appreciate the acting Tim when you rub your eye as you portray the caller "I want that 1000 shares." Lol to "in tears I hand them over".

  • @MoneyWeekVideos
    @MoneyWeekVideos12 жыл бұрын

    Well the big banks will take someone with any degree subject provided it is a good grade (2.1 or better) and from a good college. That said, economics, finance, maths and the sciences (e.g. physics/chem etc) are common subjects. You need to be comfortable with numbers and also a fast thinker plus have a commercial eye for the "right" price for a trade.

  • @govindanvr7627
    @govindanvr76279 жыл бұрын

    tutorials so nice, i leaned someting from your videos.

  • @MultiGuiri
    @MultiGuiri3 жыл бұрын

    Thank you so much! Tim is so talented at explaining the financial world to us.

  • @sud1987
    @sud19878 жыл бұрын

    Insightful video. Shame that the comments are riddled with trading adverts..

  • @sarahakasera
    @sarahakasera12 жыл бұрын

    simple, lay man explanation, easy to grasp, good job Tim!

  • @johnny6ryefield
    @johnny6ryefield12 жыл бұрын

    beyond doubt the best financial education channel on youtube.. i start my day with checking for new vids from MoneyWeek. Only problem is, my girlfriend keeps going on about how cute Timis, and I'm fed up.

  • @femobasha11
    @femobasha119 жыл бұрын

    HD, well delivered, and you make it interesting. Thank you.

  • @saurabhnaik5165
    @saurabhnaik51657 жыл бұрын

    Thank you Tim .. You ve actually simplified tough terminologies :)

  • @darkbyte2005
    @darkbyte20053 жыл бұрын

    Tim this was absolutely brilliant explanation of options. Even after 9 years ago..

  • @RobertOSullivan
    @RobertOSullivan11 жыл бұрын

    Best explanation I found so far on the whole web, thank you. I have subscribed.

  • @AlinaSvid
    @AlinaSvid11 жыл бұрын

    Thank you so much! Your explanations were very helpful to understand options!:) saved lots of time!

  • @MoneyWeekVideos
    @MoneyWeekVideos12 жыл бұрын

    Good idea - I will add that to my list. Tim.

  • @patrickmwangiager2481
    @patrickmwangiager24819 ай бұрын

    You are a master teacher. You make this topic look very simple

  • @Martin-dw8zz
    @Martin-dw8zz4 жыл бұрын

    Absolutely phenomenal video, you get so much information so clearly into such a short space of time. Amazing teacher thank you so much!!

  • @CatineSkyi
    @CatineSkyi11 жыл бұрын

    Thank you MoneyWeek! I love your videos! You're the best online guide!

  • @thamilinikulasingam9573
    @thamilinikulasingam95736 жыл бұрын

    thank you, I finally understand options!!!

  • @Naregmusic
    @Naregmusic7 жыл бұрын

    Your teaching methodologies are magnificent!

  • @tehutimaat1647

    @tehutimaat1647

    5 жыл бұрын

    Say it again please say it again ..we all the way in the bAck can't Hear you ...

  • @warren2398
    @warren23982 жыл бұрын

    I think I finally almost fully understand options.

  • @ozymandias8523
    @ozymandias85235 жыл бұрын

    Good sir, you deserve my respects, amazing lecture, it took me a lot of time but finally ai managed to understand the concept behind calls and puts, I really thank you so much.

  • @sagarsingh1234
    @sagarsingh123412 жыл бұрын

    Wow, amazing clear explanation! Good job Tim!

  • @mineshize
    @mineshize10 жыл бұрын

    thx sir for explanation

  • @jthusany
    @jthusany9 жыл бұрын

    another great job

  • @coxmello
    @coxmello11 жыл бұрын

    This was extremely informative thank you very much!!

  • @B0redAtUni
    @B0redAtUni12 жыл бұрын

    Hi Tim, super explanation. I've been struggling with Swaps and Options on my L1 CFA. Excellent video and clearly explained, please keep posting these vids!

  • @chrisfilet

    @chrisfilet

    Жыл бұрын

    Hi John did you end up passing your CFA L1?

  • @Wanrli3
    @Wanrli39 жыл бұрын

    Very good explanation!

  • @inspiron645
    @inspiron64512 жыл бұрын

    thank you, i learned the basic right now :)

  • @withyoulala
    @withyoulala11 жыл бұрын

    thanks for the video, im taking exam soon and your video has a much better/clearer explanation then reading from my text book. Zzzzz

  • @davidalen9279
    @davidalen92795 жыл бұрын

    brilliant teaching. thank you sir.

  • @timomuro9513
    @timomuro95136 жыл бұрын

    “If they do, they’re a lunatic” great vid!

  • @amithdilhan3103
    @amithdilhan31039 жыл бұрын

    thank you very much

  • @timsynnott321
    @timsynnott3217 жыл бұрын

    Great work mate, well explained in easy to understand language.

  • @deeptichawla5218
    @deeptichawla52188 жыл бұрын

    superb explanation:) loved it .. best explanation of the concept of options

  • @MoneyWeekVideos
    @MoneyWeekVideos12 жыл бұрын

    you got it! Tim.

  • @epcortek11
    @epcortek116 жыл бұрын

    Excellent video , well PUT my friend !

  • @srivastavaneeraj18
    @srivastavaneeraj188 жыл бұрын

    Thank you for such informative videos.. Can you also please help to provide more details on Warrants.. If there is already a video on warrants, please help to provide the link..

  • @EN4ORC3R
    @EN4ORC3R10 жыл бұрын

    great video. thnks

  • @OneScapWolfPack
    @OneScapWolfPack2 жыл бұрын

    Fantastic video, I don't comment often but I can't say enough how helpful this video have been.

  • @Miclariez
    @Miclariez6 жыл бұрын

    Simple and clear explanation!

  • @G00n3r4Life
    @G00n3r4Life11 жыл бұрын

    Brilliant explanation. Thanks

  • @DiscoverPianoTV
    @DiscoverPianoTV7 жыл бұрын

    thank you again! great presentation and explaination!

  • @hohiha1000
    @hohiha10009 жыл бұрын

    THANK YOU !!! YOU ARE ALOT BETTER THAN MY PROFESSOR !

  • @topshota003ah
    @topshota003ah11 жыл бұрын

    Very Clear Thanks Tim.

  • @markizmendez6431
    @markizmendez64316 жыл бұрын

    Dear, Tim, Thank you for your videos I just would like to know could you explain the Long call put altogether with the Short call and put topic, Thank you & kindest regards

  • @mk25dec
    @mk25dec12 жыл бұрын

    Amazing explanation, made it so simple, excellent work ....Please keep posting ...

  • @r.arodriquez4392
    @r.arodriquez43923 ай бұрын

    Thanks for the information in all your videos. I need all the help I can get. You make very simple to understand 🙏

  • @Sendrassil
    @Sendrassil10 жыл бұрын

    Regarding the call: the 50 are called payoff and the 20 are the profit since profit = revenue - expenses / 50-30

  • @romanivanov2589
    @romanivanov258911 жыл бұрын

    Really good explanation. its a shame I haven't seen this video in my undergrad years....

  • @oluatutube
    @oluatutube11 жыл бұрын

    You do a fantastic job in your video's - I'm a fan - Happily subscribed!

  • @binilana
    @binilana11 жыл бұрын

    Just great! Even excellent!!! Thank you so much!!!

  • @JinGwee
    @JinGwee11 жыл бұрын

    Hi, nice series of videos. Can you explain how the leverage system in FX works, from the perspective of the broker, or the exchange?

  • @bacovasaimir7277
    @bacovasaimir72774 жыл бұрын

    Thank you very much for what you are doing great teacher :)

  • @joevideotogo
    @joevideotogo11 жыл бұрын

    I now use entry setups that derived from the CME floor traders (now part of CBOT) which use pure price action and I must say it has sorted my trading out. The strategy is the Pipdaq setups and are simple in nature and not very subjective either...

  • @patilshreyas0009
    @patilshreyas000911 жыл бұрын

    this was really good .,just realized i have wasted my 3yrs and huge money in the business school .,please if you can let me and the community understand the difference between american and European call/put

  • @MJALI96
    @MJALI966 жыл бұрын

    Question: The holder of the “paper” is limited to only losing the premium paid in a put/call option, while the writer has an unlimited risk with the call option, as the stock price can keep rising, correct?

  • @bhumishri
    @bhumishri10 жыл бұрын

    Thanks Tim for the video, makes really easy to understand.. I felt the maths was off at few places..(I may not have understood it,, so please correct my understanding) 1. In Call option, at premium of 30pound/share the option would cost 30pound * 1000 shares = 30,000pound, i did not get how you came with 300pounds.???? 2. On expiry of call option, the holder will make (50-30)*1000=20,000 and not 200,000. Were does 200,000 come from? 3. Same on the put option, the holder will make (100-30) * 1000 = 70,000 and not 70,000.

  • @linima69

    @linima69

    9 жыл бұрын

    hey hi, the pounds to the small to the small p conversion is 100(p) = 1 pound. so 20000(p) is 200 pounds

  • @arthurromanov

    @arthurromanov

    8 жыл бұрын

    +Hemamalini Venkat crap this is the part I didn't understand... Tim called it 4 when it was 400p, I actually still don't get it but just probably so tired (and already drunk of my wine) that uhhhh.... fuck it, tomorrow is hopefully another day =) Tim - thank you very much for the videos... hope I can reach out to you somehow - I have ideas.... I have investors... I have speculators =) Mother Russia =)

  • @jdmaryanne
    @jdmaryanne8 ай бұрын

    you are an awesome teacher!

  • @anny23108
    @anny231085 жыл бұрын

    The fact that the premium for the option changes means that once you have bought the shares you have to supplement what you have paid already or that new buyers will have to pay more - premium wise- for a put option if - 2 weeks from the option being issued- underlying's price has gone down? Thank you

  • @Mr3169Leo
    @Mr3169Leo3 жыл бұрын

    fantastic explanation, thanks

  • @abhinavitsmebellamy
    @abhinavitsmebellamy4 жыл бұрын

    Thank you, for this. Great video!!

  • @JamesTaouk
    @JamesTaouk4 жыл бұрын

    God bless you. Thank you for your time.

  • @Harrybhatia16
    @Harrybhatia1612 жыл бұрын

    excellent explanation

  • @MrLeo625
    @MrLeo6254 жыл бұрын

    Very well explained 👍🏽

  • @eagle6792
    @eagle679211 жыл бұрын

    man you are a legend.

  • @jmusic2024
    @jmusic20243 жыл бұрын

    Amazing explanation

  • @jango143ful
    @jango143ful3 жыл бұрын

    id be in the bahamas! what a classic start. great videos.

  • @john-blair
    @john-blair3 жыл бұрын

    Thanks. Very well explained.

  • @esoteric_chaos
    @esoteric_chaos2 жыл бұрын

    Love these learning gold nuggets

  • @glenbrown4132
    @glenbrown41323 жыл бұрын

    Well and easily explanation thanks!

  • @vedantsgoodlife7302
    @vedantsgoodlife73024 жыл бұрын

    That is one great video... quite informational. Thanks a lot

  • @FunnyLearner
    @FunnyLearner11 жыл бұрын

    Great video!

  • @BlergleslinkVettermoo
    @BlergleslinkVettermoo6 жыл бұрын

    Good tutorial!

  • @ritakhan5293
    @ritakhan52935 жыл бұрын

    Thanks a bunch!

  • @skinny6669
    @skinny666912 жыл бұрын

    You are the KING

  • @tanvinasabrin4265
    @tanvinasabrin42657 жыл бұрын

    thank you😊

  • @samialsati8054
    @samialsati80546 жыл бұрын

    bestttttttttt explanation many thanksssss

  • @Lozgbwoi
    @Lozgbwoi11 жыл бұрын

    Hi Tim, yes your videos are good. Are you going to go into any more detail eg put call parity, combinations etc.

  • @jaamacdagaale5145
    @jaamacdagaale51453 жыл бұрын

    There is alot of good explainers that left youtube like this gentleman i also know 3 very good explainers dont do a videos anymore. May be they find their niches elsewhere and we left punch of scammmers clickbaits

  • @thekidinventers7323
    @thekidinventers7323 Жыл бұрын

    I have a question and had been trying to find the right answer. When they do a secondary offering and at the same time they issue stock warrants to be exercised at the price..do they dilute/issue more shares again when warrants are exercised?

  • @andrewhedlund1
    @andrewhedlund112 жыл бұрын

    Would it be fair to say that futures and options are similar but the only difference is that options can't be renegotiated? Also, thank you SO much for the excellent tutorials on these complex matters. This is how I spend my spare time!

  • @unicornlala2041
    @unicornlala20415 жыл бұрын

    Thanks mate amazing

  • @marmanlive
    @marmanlive8 жыл бұрын

    Thanks much!!!!!

  • @fadialkhamach5616
    @fadialkhamach56164 жыл бұрын

    you are a legend ! thank u !

  • @JyotiPandey-go2kk
    @JyotiPandey-go2kk3 жыл бұрын

    Thank you.

  • @Latin_American_Economic
    @Latin_American_Economic11 жыл бұрын

    I have a question. With options do you have to own the shares to write a put or call option or can you write either a put or call without owning shares.

  • @zhubarb
    @zhubarb11 жыл бұрын

    HI Tim, from minute 19 onwards you mention how the premium of an option changes as the market price changes and that most of the time options are not exercised but rather change hands at different premiums. What I understand then is that in this case traders are dealing with the future (derivative) of an option (derivative). So the 'product' changing hand is a 2nd derivative of the ABC share prices. Is this correct?

  • @jishaman
    @jishaman11 жыл бұрын

    Is it possible to Hedge your options or sell an option of another option which expires within the expiration of the original option?

  • @JoeR.3221
    @JoeR.3221 Жыл бұрын

    *question* So you have to own the 1000 shares in the first place before you can create and sell a call option to someone else??

  • @styles7887
    @styles788712 жыл бұрын

    thanks Mwv good lesson

  • @bennyyoung9842
    @bennyyoung9842 Жыл бұрын

    Amazing, thank you :)

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