Advanced Options Concepts - Probability, Greeks, Simulation
4.3 (258 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
2,339 students enrolled

Advanced Options Concepts - Probability, Greeks, Simulation

Deep dive into Probability, Greek subtleties, and Options simulation. Learn how they affect Option prices and strategies
4.3 (258 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
2,339 students enrolled
Created by Hari Swaminathan
Last updated 12/2019
English [Auto]
Price: $79.99
30-Day Money-Back Guarantee
This course includes
  • 2 hours on-demand video
  • 5 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
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What you'll learn
  • 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.
  • Basic Options knowledge of Calls and Puts
  • Basic knowledge of Option Greeks

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


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.




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



 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



Who this course is for:
  • 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
Course content
Expand all 11 lectures 02:01:01
+ Deep Dive into Probability
3 lectures 32:46
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
Preview 04:34
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
Preview 10:10
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.
Standard deviation, Buffer zones and Probability Curves
Probability Quiz
4 questions
+ Deep Dive in the Option Greeks - Subtleties of Delta, Gamma, Vega and Theta
2 lectures 26:07
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
Analyzing the subtleties of Delta, Gamma and Vega for different expiry series
This lecture covers Theta - time decay
Analyzing Theta subtleties
Option Greeks Quiz
5 questions
+ Options Simulation - The key to understanding your position
6 lectures 01:02:08
The importance of Options simulation. Options simulation is the third leg of the Options trading stool - a critical requirement for an Options trader
Options Simulation introduction - Why do we need simulation
Simulating an Options position for the three variables - Price, Time and Volatility on an individual basis.
Options simulation - Simulating Price, Volatility and Time decay individually
Simulating an Options position for the 3 variables when all 3 variables are changing. This is a realistic simulation of actual market conditions
Options simulation - Simulating Price, Volatility and Time decay collectively
Introduction of Theoretical Price on Thinkorswim. This can be a useful column in many cases.
Options simulation - Calculating Theoretical Price
The concluding lecture for this course.