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Options Trading: Beginner to Advanced
- Last Updated: July 21, 2024
- English
About Course
Options Trading: Beginner to Advanced
Unlock the Power of Options with Expert Training
Dive into the world of options trading with our comprehensive course designed for both beginners and experienced traders. Whether you’re looking to understand the basics or refine your trading strategies, this course covers everything you need to know to trade options confidently and effectively.
Course Highlights
1. Introduction to Options
Get started with the fundamentals of options trading. Learn about:
- Option Contracts: Discover the core components and mechanics.
- Call & Put Options: Understand the rights and obligations associated with each.
- Strike Price & Expiration: Explore key concepts that influence option pricing.
- Option Premium & Leverage: Learn how premiums are set and how leverage works.
2. Option Settlement
Master the settlement process to navigate expiration and assignment with ease:
- Exercising & Assigning Options: Learn the procedures and implications.
- Early Exercise & Assignment Risks: Understand the strategic considerations.
- Settlement Methods: Compare physical vs. cash settlements and their timelines.
3. American vs. European-style Options
Distinguish between option styles to optimize your trading strategy:
- European Options: Explore the features and limitations.
- American Options: Understand the flexibility and its impact on trading.
- Assignment Risks & Management: Learn to manage risks and avoid early assignment.
4. Option Pricing
Delve into the intricacies of option pricing and volatility:
- Intrinsic & Extrinsic Value: Understand their roles and calculations.
- Volatility & Pricing Models: Learn about historical vs. implied volatility and models like Black-Scholes.
- Volatility Skew & Smile: Explore how these factors affect pricing and strategy.
5. Option Greeks
Gain insights into the Greeks to enhance your trading strategies:
- Delta, Gamma, Theta, Vega, Rho: Learn how each Greek affects options pricing and strategy.
- Delta Hedging & Gamma Risk: Manage risks and adjust your positions effectively.
6. Moneyness
Understand the impact of moneyness on options:
- In-The-Money (ITM), Out-Of-The-Money (OTM), At-The-Money (ATM): Learn how these terms influence your options strategies.
7. Types of Options
Explore different option types and their strategic uses:
- Put-Call Options: From buyers’ and sellers’ perspectives.
- Visualizing Profit & Loss: Use graphical representations to assess trades.
8. Risk Management
Implement effective risk management techniques to protect your capital:
- Position Sizing & Stop Loss: Learn how to size your positions and set stop losses.
- Hedging vs. Diversification: Understand the differences and when to use each.
9. Option Strategies
Master a wide range of strategies to suit various market conditions:
- Long & Short Calls/Puts: Setup, adjustments, and hedging strategies.
- Debit & Credit Spreads: Learn about Bull Call, Bear Call, Bull Put, and Bear Put Spreads.
- Complex Strategies: Explore Iron Condors, Iron Butterflies, and Ratio Spreads.
Why Choose This Course?
- Expert Instruction: Learn from seasoned traders with years of experience.
- Comprehensive Content: From basic concepts to advanced strategies, every topic is covered.
- Practical Application: Gain real-world skills and knowledge to apply in your trading.
- Interactive Learning: Engage with dynamic content, examples, and practical exercises.
Enroll Today!
Equip yourself with the knowledge and skills to excel in options trading. Join our course and transform your trading approach.
Benefits of the course
- Comprehensive Coverage: Master all aspects of options trading from basics to advanced strategies.
- Expert Guidance: Learn from experienced traders with practical insights and tips.
- In-depth Understanding: Gain clarity on complex concepts like volatility, Greeks, and pricing models.
- Practical Skills: Develop hands-on experience with real-world trading scenarios and strategies.
- Risk Management: Learn effective techniques for managing and mitigating risks.
- Versatile Strategies: Explore a wide range of strategies including Long/Short Calls/Puts, Spreads, and Complex Strategies.
- Dynamic Adjustments: Learn how to adjust positions based on market movements and changing conditions.
- Rolling Strategies: Understand how to roll options to extend positions or manage risk.
- Hedging Techniques: Master techniques to hedge against adverse market movements.
- Strategic Adjustments: Explore adjustments for common strategies such as Bull Call Spreads, Iron Condors, and Short Strangles.
- Risk Mitigation: Implement adjustments to minimize losses and lock in gains.
- Interactive Learning: Benefit from engaging content, examples, and practical exercises.
- Enhanced Decision-Making: Improve your ability to make informed trading decisions.
Course Content
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What is an Option Contracts
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What is Call Option
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What is Put Option
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What is a Strike Price
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Expiration
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Option Premium
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Options Leverage
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Open Intrest
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Bid-Ask Spread
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Order Types
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Other Options Terminologies
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Options expiration
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Exercising options
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Options Assignment
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What is Options Early Assignament
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Random Assignment
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Assignment Risk
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Closing Assigned Positions
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Dividend Assignment
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Settlement
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Introduction
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Differences between European and American Options
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Options Assignment
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How to Avoid Early Option Assignment
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Managing Assignment Risk
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Best Practices: What to know about Assignment
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Intrinsic Value
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Extrinsic Value
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Extrinsic Value vs. Intrinsic Value
00:00 -
Factors that Influence Extrinsic Value
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Time Value
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Volatility
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Historical Volatility
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Implied Volatility
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Difference between Implied Volatility and Historical Volatility
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How to calculate Implied Volatility?
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How does Implied Volatility go up or down?
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How does volatility affect options pricing?
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Implied volatility skew
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Option skew
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IV rank
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IV percentile
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Volatility index (VIX)
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How Dividends effect Options Pricing?
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Interest Rates
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Volatility Smile
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Volatility Smirk
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Black-Scholes Model
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Introduction
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Delta
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Gamma
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Theta
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Vega
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Rho
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Introduction
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In-The-Money (ITM)
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Out-Of-The-Money (OTM)
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At-The-Money (ATM)
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Example
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Put-call options from the buyers’ point of view
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Put-call options from the sellers’ point of view
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Visualize Options Profit and Loss
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Options Trading vs Stock Trading
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Position sizing
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Set A Firm Stop Loss Level
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Be Consistent With Your Positions
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$10,000 Account Position Sizing
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$100,000 Account Position Sizing
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How To Determine Your Most Appropriate Position Size
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Equity Risked
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Sequence of Returns
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Hedging
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Difference between Hedging and Diversification?
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Why Diversification alone is Insufficient
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Why should I hedge my portfolio?
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Long Call
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Adjusting a Long Call
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Long Put
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Adjusting a Long Put
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Short Call
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Adjusting a Short Call
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Short Put
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Adjusting a Short Put
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Debit Spreads
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Bull Call Spread
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Adjusting a Bull Call Debit Spread
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Bear Call Spread
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Adjusting a Bear Call Spread
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Bull Put Spread
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Adjusting a Bull Put Spread
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Bear Put Spread
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Adjusting a Bear Put Spread
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Short Straddle
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Adjusting a Short Straddle
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Short Strangle
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Adjusting a Short Strangle
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Iron Condor
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Adjusting an Iron Condor
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Iron Butterfly
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Adjusting an Iron Butterfly
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Call Ratio Spread
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Adjusting a Call Ratio Spread
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Put Ratio Spread
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Adjusting a Put Ratio Spread
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Covered Call
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Adjusting a Covered Call
- Update: July 21, 2024
- Lectures106
- Skill LevelAll Levels
- LanguageEnglish
- Course Duration: 20h
Requirements
- Basic Financial Literacy: Understanding of basic financial concepts such as stocks, bonds, and market dynamics.
- Familiarity with Stock Market: General knowledge of how the stock market operates, including fundamental concepts like buying and selling shares.
- Basic Mathematical Skills: Comfort with fundamental mathematics, including basic algebra and percentage calculations.
- Computer Proficiency: Ability to navigate online trading platforms and use basic software tools for analysis and research.
- Interest in Financial Markets: A strong interest in learning about trading strategies and financial instruments.
- Willingness to Learn: Openness to engaging with complex concepts and applying them in practical scenarios.
- No Prior Options Knowledge Required: The course is designed to be accessible to those with little or no prior knowledge of options trading.
Target Audience
- Aspiring Traders: Individuals new to options trading who want a structured introduction to the market and trading strategies.
- Intermediate Traders: Those with basic knowledge of trading who seek to deepen their understanding of options and refine their strategies.
- Experienced Investors: Seasoned traders looking to expand their toolkit with advanced options strategies and risk management techniques.
- Financial Professionals: Analysts, portfolio managers, and financial advisors who need a comprehensive understanding of options to better serve their clients.
- Active Traders: Individuals who trade stocks or other assets and want to incorporate options into their trading strategies for enhanced flexibility and potential.
- Risk Managers: Professionals interested in learning sophisticated risk management techniques to hedge and manage portfolios effectively.
- Retirement Planners: Investors seeking strategies to generate income or protect their retirement savings using options.
- Market Enthusiasts: Individuals passionate about financial markets and looking for a detailed, practical approach to options trading.
- Students and Researchers: Academics and students studying finance and trading who need a thorough, practical understanding of options markets.
- Technology and Finance Enthusiasts: Those interested in leveraging technology for trading and seeking to apply advanced trading models and simulations.