Advanced Options Concepts - Probability, Greeks, Simulation

Deep dive into Probability, Greek subtleties, and Options simulation. Learn how they affect Option prices and strategies
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634 students enrolled
Instructed by Hari Swaminathan Business / Finance
$60
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  • Lectures 10
  • Contents Video: 2 hours
  • Skill Level Intermediate Level
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 2/2013 English

Course Description

This course covers three advanced Options concepts - Probability, Advanced Options Greeks analysis and Options Simulation

SECTION I - DEEP DIVE INTO PROBABILITY ANALYSIS

While Probability has been mentioned a few times in previous courses, we take a deep dive in this course. Having a finely tuned probabilistic mindset coupled with good analysis is an absolute must in financial markets. This course shows a few different ways of looking at Probability and how investors can create strategies to put Probability on their side.

 

SECTION II - DEEP DIVE INTO THE OPTION GREEKS

 

This course also takes a deep dive into the four Greeks - Delta, Gamma, Theta and Vega. We introduced these concepts in the previous module, but it is time to take their understanding to a new level. The Greeks are the path to putting your strategies on "Auto-pilot". We explain the subtleties of all the Greeks - very cool stuff, put your Math hat on... 

 

What you will master

 

  • What is the importance of statistical price modeling in the stock markets
  • Why is Standard Deviation an important metric
  • What are the pluses and minuses of statistical modeling
  • How can we choose strategies using Probability as a signpost
  • Take your understanding of all the four Greeks to a new level
  • Master the subtleties of each of the Greeks
  • Look at option modeling from a mathematical standpoint

 

SECTION III - OPTIONS ANALYSIS AND SIMULATION

 A good trade entry based upon Volume / Chart / Technical analysis sets you up for success from the get-go. But before you put a trade on, you need to perform Options analysis and simulation to understand how your position will behave under a diverse set of market conditions. Once you perform this Options analysis, you can immediately spot your weak points and you're prepared for them. Analysis and Simulation are as important as finding a good trade entry. In this course, we provide a complete roadmap to simulate every possible market condition BEFORE you put the trade on. This kind of analysis may take 30 minutes, but its well worth the time spent.

 

What you will master

 

  • How will your position behave for a + / - 5% move in your stock
  • Options analysis before you put your trade on
  • Options simulation to know where your profit zone is
  • What is the impact of Time decay on your position
  • What will Implied Volatility changes do to your position
  • Simulating the effects of two variables on your position
  • Simulating all three variables
  • Stress testing your trade

 

 

What are the requirements?

  • Basic Options knowledge of Calls and Puts
  • Basic knowledge of Option Greeks

What am I going to get from this course?

  • Master the concept of probability as it applies to Options markets
  • Understand the various subtleties of all four Option Greeks
  • Put an "edge" into your trades in your favor with these advanced analysis techniques
  • Know how your Options position will perform under all conditions BEFORE YOU PUT YOUR TRADE ON.

What is the target audience?

  • People familiar with Options basics like Buying Call Options and Put Options
  • Anyone with basic knowledge of Options spreads
  • Anyone intending to optimize their credit spreads and other Options strategies

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Deep Dive into Probability
04:34
This is an introduction to the course. In this course, we're taking a deep dive into 3 important concepts in Options trading - Probability, Advanced Greek analysis and Options simulation
10:10
Two new columns are introduced on the Thinkorswim platform - the Probability of going ITM and the probability of Touching. Both these columns provide insightful information to an Options trader
18:02
A continuation of probability analysis, Standard deviation, the ideal strike prices to set up short strike Options, the analysis of the buffer zone created by the premium collected and a study of probability curves.
Probability Quiz
4 questions
Section 2: Deep Dive in the Option Greeks - Subtleties of Delta, Gamma, Vega and Theta
19:11
We studies the 4 Greeks in an earlier course. In this section, we take a deep dive into each of the Greeks. This lecture covers Delta, Gamma and Vega
06:56
This lecture covers Theta - time decay
Option Greeks Quiz
5 questions
Section 3: Options Simulation - The key to understanding your position
06:24
The importance of Options simulation. Options simulation is the third leg of the Options trading stool - a critical requirement for an Options trader
18:43
Simulating an Options position for the three variables - Price, Time and Volatility on an individual basis.
15:44
Simulating an Options position for the 3 variables when all 3 variables are changing. This is a realistic simulation of actual market conditions
08:13
Introduction of Theoretical Price on Thinkorswim. This can be a useful column in many cases.
05:54
The concluding lecture for this course. 

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Instructor Biography

Hari Swaminathan, Options and Financial markets expert, Trader and Investor

Knowledge. Strategy. Execution.

Hari Swaminathan is the founder of OptionTiger, a cutting-edge Options education and trading company based in Washington D.C.. Hari is an entrepreneur, everyday person and a self-taught Options expert for over 8 years. Hari has a Bachelors degree in Engineering from India, and MBA degrees from Columbia University in NYC and London Business School in the U.K

More than ever, its become important for everyday people to take control of their financial situation, and create additional income in a smart, risk-controlled manner. This is precisely my mission. Through knowledge, education and investment discipline. Options are powerful, but they have a learning curve. I've broken down all the complexities of Options in simple language that everyone can understand. The courseware uses real trade examples, always highlighting the pluses and minuses of every investment situation. Options provide the best way to take advantage of bull cycles, bear cycles and everything in between.

As someone that has self-learnt Options and through making mistakes, I can tell you Options trading is not something you should take lightly. You will hear people talking of fantastic triple and quadruple digit returns. I'm here to be brutally honest with you - 

- Be very very careful in the first 12 months of Options trading. 

- This is when everyone is the most vulnerable to losing money. 

- Your main objective during this time is to focus on learning this craft and not lose money during this time. 

Having said that, if you can get past the first 12 months and acquire the expertise in a systematic manner, true financial independence awaits. Options are a mathematical and strategic game much like Chess, and no amount of technological advances can make this skill obsolete, because the fundamentals of Options are never going to change. 

You can trade Options from anywhere in the world, regardless of how old you are. You never have to worry about job security any more because you have a skill that can produce consistent wealth month after month. 

But you have some serious but exciting work to do before you can get there, and I'm here to help you in this journey. 

Watch my Free Course for Options Trading Beginners where I draw out a detailed roadmap of what this 12-month journey looks like, and the specific strategies you should master during each step of this learning process. 

Watch my Free Mini-courses or my YouTube channel , all of which have the highest quality of education material. 

And join me in my UDemy courses, where I share cutting-edge theoretical knowledge mixed with practical insights, strategy and impeccable execution through live trading examples. 

If you have any questions at any time, please feel free to message me on Udemy.

The order to follow on my Udemy courses

Comprehensive guide to Financial Markets, Investing and Trading

Options Trading Beginners Bundle (3-course Bundle)

Advanced Options Concepts

Options spreads and credit spreads Bundle

Technical analysis and Chart reading Bundle

After this, the order does not matter. You can take any of the courses as per your interest.

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