The Strike Price Rule Everyone Gets Wrong

Most people hear "options" and think gambling. In this Ground School video, I break down exactly what call options are, how strike price determines whether your contract is built to survive or built to break, and why the "cheaper" option can actually cost you 50% more when the market drops. I use real LEAPS pricing and show what happens when you invest $250,000 into in-the-money versus out-of-the-money contracts. By the end, you will be able to look at any options chain and understand what every number means. This is part of the Foundational Flight Plan series. If you have not watched the earlier videos, links are below. (Start Here) Foundational Flight Plan:    • START HERE: The Foundational Flight Plan   Timestamps 0:00 Intro 0:34 What options actually are 1:55 Strike price and moneyness 3:30 The premium: why built-in value matters 4:43 Same dollars, different outcome 7:24 The Greeks: delta, theta, vega, gamma 10:27 Reading an option chain 11:37 Exercise vs. sell to close 12:08 Takeaways 12:42 Outro Stay Connected: Website: www.autopilotyourwealth.com About this channel: I help people stop guessing and start running their money with rules. Real accounts, real trades, real results. A pilot and military veteran showing how he builds retirement wealth through systematic investing with a small LEAPS overlay. No hype, no predictions, no courses to sell. DISCLAIMER: I am not a financial advisor. This channel is for educational and entertainment purposes only and does not constitute financial advice. Investing and options trading involve risk, including the potential loss of capital. Past performance is not indicative of future results. #OptionsTrading #SPY #LEAPS #InvestingForBeginners #OptionsExplained