Greg missed some very important considerations with his explanation of how options work in the first video. He failed to mention "the" most important factor in determining whether or not you will be successful in ANY options trade. Time premium values and how they can dramatically affect the value of options pricing. For instance, if XYZ stock that you bought $50 call options on doesn't shoot through $50 for a couple of weeks after you bought XYZ $50 call options for say 30 days out...you can STILL lose money. He is correct that you can only lose the $$$ amount paid for the option however. A good options trader will therefore try and time his entry as close as possible to the beginning of the move higher (if buying calls) and as close to the beginning of the move looower (if buying puts.) All four of the trades Greg now has open at his web blog could end up as losing trades...simply by the destructive power of decay of the time premium of the trade.