
· Why Derivatives were invented – Risk Management & Price Discovery.
· What is a Futures Contract – Commodity, Equity, Index, Currency Futures.
· What is an Options Contract – Commodity, Equity, Index, Currency Options.
· Importance of Technical Analysis in Derivative Trading
· Introduction to Leverage
· Introduction to Margin & Margin Calls
· Concept of Risk and Payoff
· Introduction to Collateral Pledge
· Concept of Expiry & Expiry Day Trading
· Mark to Market
· Settlements
· Index Futures
· Index Options, Option Chain, and Strike Price
· Cash Settlements
· Cost of carry
· Concept of Beta
· Concept of Open Interest
· Introduction to Calls and Puts
· Buying Options
· Selling Options
· Multi-Leg Combination of Buying & Selling Strikes
· Concept of Premium and Discount
· Intrinsic Value
· Concept of Time Value
· Concept of Volatility
· Delta – make money by trading the direction
· Theta – make money with time decay
· Vega – make money by playing volatility
· Black-Scholes option pricing model
· Single Leg strategies
· Multi-leg strategies
· Concept of non-linearity
Technical Indicators
Combine TA with Option Strategies
Collateral Pledge
Shifting to Demat MF for pledging
Shortlist just 3 trades
Firefighting Losses
· Concept of Backtesting
· Concept of Forward Testing
· API linking Broker with Algo Platform
· Executing Algo Trades
Profiting in options trading is not that simple, yet people come to the stock market to make quick money. The real reason options trading is more difficult than regular stock trading is the option Greeks like delta, theta, and vega. Basically, the factors that determine profits are not just the market's direction but also time and volatility.
If you learn the theoretical concepts clearly, then you stand a better chance than amateurs to make money from the options trading market. It might require more than 7 hours of learning, and that's where this course will benefit you. This program is designed as 12 modules, with each module building on the previous one. It is highly recommended that you go through the same in the same order of precedence.
Options trading gives you the chance to make money in all three directions of the markets - Bullish, Bearish, and Flat, and it's a significant step over the normal buy-low-sell-high only strategy in stock trading.
At the end of the program, you would be given the Top 10 principles to be printed and kept at your desk to become a Top 1% Elite Trader, they are:-
1. Define max loss before entering the trade.
2. Opt for Sell-side strategy to get time on your side.
3. Do not trade in Illiquid contracts.
4. Max loss should not exceed 2% of your capital.
5. Maintain a trading journal.
6. Not taking a trade is also a good trade.
7. Wait for the right setup, do not commit early.
8. Follow your trading system, no matter what.
9. The amount won is your capital. Do not consider it as disposable capital.
10. You will discover your trading edge by following the 9 rules above.