Magic Loop and Thumb hole?

I am starting making a pair of armwarmers/wrist warmers and it is my first time knitting in the round. I am making these:
but am soooo confused about the thumb. Frankly I am confused about the thumb on any method but I have been looking at tutorials (my computer does not have sound) about all the different knitting in the round method and the Magic loop seems to make the most sense and the easiest. Can someone point me in a direction what you do when you get to the thumb? Or brake it down for me? I am lost :frowning:
I knit combination method if that helps.
Thank you!