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30-Day Money-Back Guarantee

This course includes:

  • 3 hours on-demand video
  • 2 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
Finance & Accounting Investing & Trading Options Trading

Buying Call and Put Options - Options beginner strategies

The first Options trades you make must be a Long Call (Bullish) and a Long Put (Bearish) - both are explained in detail
Rating: 4.6 out of 54.6 (51 ratings)
486 students
Created by Hari Swaminathan
Last updated 12/2019
English
English [Auto]
30-Day Money-Back Guarantee

What you'll learn

  • Start Options trading with the basic strategies - Long Call and a Long Put
  • Learn to manage live trades on Long Calls and Long Puts
  • Understand entry points, as well as good exit criteria for trades
  • How to really "milk" your winning trades
  • Learn sophisticated orders like the "Conditional" orders
  • How to optimize an Options strategy for a particular outlook
  • Learn the art of adjustments for Single Options

Requirements

  • Calls, Puts, Time Decay, Implied Volatility and the Greeks

Description

  SECTION I - BUY A CALL OPTION (CHIPOTLE MEXICAN GRILL) 

  Buying a Call Option is the most basic of all the Option strategies and is the most efficient strategy to optimize a bullish outlook on a stock. In this course, we take the example of Chipotle Mexican Grill (CMG) and show how the trade played out. We analyze the rationale behind entering the trade, the risk/reward profile, chart analysis and point of entry, choice of expiry and "moneyness" of the Option, time decay considerations, margin requirements, profit expectations, exit criteria, Greek analysis, its Profit and Loss profile and various other considerations. We provide a 360-degree analysis before trade entry. This is a real trade and over 15 days, and we navigate the trade to its exit point. 

What you will master

  • When should you consider a Stock for a Long Call position

  • What are the criteria for good entry

  • What are the Implied Volatility and time decay considerations

  • What should we look for in terms of changes in Implied Volatility

  • How do we analyze the Pilot's "map" - the Profit and Loss graph

  • Which Option strike price should we choose to optimize our position

  • Which Option series should we choose when buying call options

  • When do we exit - what is a good profit point

  • What external market considerations should we watch for

  • Understand the ROI (Return on your investment) metrics of a trade

 
 
 

  SECTION II - BUYING A PUT OPTION (FXE EURO ETF) 

  Buying a Put Option serves two purposes - exploit a bearish move in the stock or be the ultimate protector of your stock. In this part of the course, we take the example of the Euro ETF (FXE) and show how the trade played out in about 25 days time. We analyze the rationale behind entering the trade, the risk/reward profile, chart analysis and point of entry, choice of expiry and "moneyness" of the Option, time decay considerations, margin requirements, profit expectations, exit criteria, Greek analysis, its Profit and Loss profile and various other considerations. We provide a 360-degree analysis before trade entry. We show you how to "let your winners run" in a controlled manner. 

What you will master

  • When should you consider a Stock for a Long Put position

  • What are the criteria for good entry

  • What are the Implied Volatility and time decay considerations

  • What we should for in terms of changes in Implied Volatility

  • How do we analyze the Pilot's "map" - the Profit and Loss graph

  • Which Option should we choose to optimize our position

  • When do we exit - what is a good profit point

  • What external market considerations should we watch for

  • Understand the ROI (Return on your investment) metrics of a trade

  • How should we scale out of a hugely profitable position

 
 
 

  SECTION III - STRATEGY AND OPTIMIZATION 

  The Option strategy optimization course brings all the 4 Options strategies together. The 4 strategies are comprised of 2 bullish and 2 bearish strategies, but how and when should we choose a particular strategy over the other. We create a helpful "4 strategies box" to distinguish and connect one strategy to the other. Most importantly, what are all the considerations before we choose a strategy. Our choice of strategy depends not only on what the stock is currently doing, but also on various market externalities as well as a few key Option metrics like Implied Volatility.

What you will master

  • How to differentiate between the 2 bullish and 2 bearish strategies

  • If you were bullish, would you choose a Long call or Short Put

  • If you were bearish, would you choose a Long Put or a Short Call

  • Why our outlook on the trade is the most important consideration

  • What are the Implied Volatility and time decay considerations

  • Which Option should we choose to optimize our outlook

  • What external market considerations should we watch for

 
  SECTION IV - SINGLE OPTION ADJUSTMENTS
   

 
    This course studies the need for Option adjustments, and why adjustments are as critical to the success of your position as good entry or analysis. We consider all the four basic strategies - the Long Call, Short Call, Long Put, and the Short Put and look at various adjustments to these positions if they get into trouble. Every investor has a "pain point" - this is the point at which they adjust their position. Applying a rigorous approach to this pain point enables investors to control risk while maximizing the opportunity to profit. The course also discusses various details like early adjustments, over-adjusting and adjusting profitable trades as well as the importance of the investor's outlook for the stock when considering adjustments. 

What you will master

  • What are adjustments and why do we need to adjust positions

  • Why adjustments are a feature of Options that should be taken advantage of

  • What are the considerations for making a good adjustment

  • Are adjustments different for different strategies

  • Sneak peek into "Option Spreads" - the focus of Module III

  • How much of an adjustment should we make

  • What is over-adjustment and why we should try to avoid it

  • How should we adjust when our outlook for the stock changes

 

   

Who this course is for:

  • Those who have a good theoretical understanding of Call and Put Options
  • Theoretical knowledge of Time decay, Implied Volatility and the Option Greeks

Course content

4 sections • 15 lectures • 3h 11m total length

  • Preview18:14
  • Live long Call trade on Chipotle Mexican Grill (CMG)
    11:51

  • Long Put trade idea an entry on FXE
    18:40
  • Trade Management using sophisticated Conditional Orders on Long Put FXE
    19:19
  • Trade Management on Long Put FXE ("Milk your winners") and Exit criteria
    10:18

  • Pitfalls of Short Calls and short Puts
    11:40
  • Four Strategy Choices - 2 Bullish and 2 Bearish
    19:39
  • Strategy Case study - S&P 500 Index and GOOG, AAPL and PCLN charts
    08:42
  • Strategy Case study - Linkedin Trade Idea
    08:34
  • Strategy Case study - CAT Trade Idea
    12:03
  • Criteria for Long Options
    4 questions

  • Philosophy of Adjustments
    09:39
  • Adjustments for Long Call positions
    15:03
  • Adjustments for Short Calls, Long Puts and Short Put positions
    15:42
  • CONCLUSION
    05:22
  • Strategy and Adjustments Quiz
    4 questions
  • BONUS LECTURE - DONT MISS !!
    07:10

Instructor

Hari Swaminathan
Options Mentor, Financial markets educator, Trader, Investor
Hari Swaminathan
  • 4.4 Instructor Rating
  • 12,236 Reviews
  • 82,868 Students
  • 33 Courses

Knowledge. Strategy. Execution. 

    Hari Swaminathan is the founder of OptionTiger, a cutting-edge Options mentoring company, and a full-circle educator in all areas of Financial Markets, Hari has developed several proprietary Intellectual Property "methods and approaches" around enhancing base case Options strategies (which favor the Market Makers) and turns that deficit into a massive EDGE on the trader's side.

Hari has a Bachelors degree in Engineering from College of Engineering, Pune, India, and MBA's from Columbia University in NYC and London Business School in London UK. 

Hari is self-taught in Options and actively trading these instruments for almost 10 years, mostly through trial and error. Trial and error in general, is an excellent method of learning, but applied in this context, trial and error CAN BE EXPENSIVE. My courseware focuses on this aspect mostly, so you can avoid losing money in the 1 to 2 years when you're learning.


THE OPTIONS GAME

  More than ever, it has become important for normal people to take charge of their financial situation, and truly understand how financial markets, and the various asset classes, trading nuances really work. Investing in the financial markets is no longer a HANDS-OFF ACTIVITY. There's no point blaming financial advisors after the fact. Now, it's become crucial for everyone to do "their OWN homework", so you can decide for yourself whether something is good or risky. This is of course easier said than done.

My mission is to educate everyday people on the deep, strategic underpinnings of the stock markets, and exploit that knowledge with the use of OPTIONS.  THERE IS NOTHING RANDOM about the markets. There are surprises all the time, but there's always a method behind every madness. And my goal is to get you to this point of understanding and awareness. That's when it starts to fit in. 

Knowledge, Education, Crafting Breakthrough strategy, Technical analysis, Following Smart Money, Risk management, Disciplined Money management, and near flawless Execution approaches are just a few of the crucial points emphasized in all the Courses. Video-based education courseware, Practical workshops, several elite proprietary Advanced systems, Proprietary Algorithms and Customized Technical indicators, Live Trading programs are just a few things we offer. The goal is to provide a "full circle" education in the Markets, which is necessary before it starts "fitting in". 

Let's break down the Options game in a realistic manner. 

The Pluses

1. Options were invented out of thin air. And the people who invented them won Nobel Prizes for their invention. It is purely a "Mathematical" concept. 

2. This gives rise to very complex but interesting  analytical scenarios. It also gives us the ability to model Options with a set of tools like a car dashboard. This data is embedded in the mathematical formulas that underpin Options structure itself.

3. Because everything in Options is defined in mathematical terms, it's also important to realize that OPTIONS will always be the same. Forever. Unless they discover serious flaws in the formulas and models used by these Nobel winners. 

4. Options and Chess have LARGE overlaps. You may agree that Chess is a game of "skill". It's a game of Strategy and depends upon how well you can plan (ahead) to attack, defend or take a neutral position. We also believe that Chess is strategy-focused and depends upon certain mathematical principles. Why or how do we know this - The reason we know it's a game of skill is : Try to play 100 chess games with Kasparov or Anand. Normal people are almost guaranteed a loss in all 100 games. So it has to be a game of skill. And why do we know its underlying features are mathematics based. The fact that a computer like Deep Blue beat the GrandMaster Garry Kasparov in 1997.

5. Lastly, You MUST believe this completely -  Options, just like Chess, are a "skill set", and requires acquiring a deep set of analytical skills much more so than most skill sets in the world, and they can only be MASTERED over a period of time. But, there is a very powerful light at the end of this tunnel. You build a skill set for life.  Age, Geographical location, Lifestyle, or Weather are no longer a barrier to creating consistent income streams, regardless of who you are, where you are, or how old you are. 

This is very POWERFUL stuff. 

Now let's look at the negatives. This is what most people will NOT tell you. Anyone that tells you Options are SIMPLE, and you can make extra ordinary income easily, is JUST NOT TRUE. I will tell you Options can be brutal if you simply apply speculative methodologies. And once you can develop a SYSTEMATIC approach to every situation (which is the Real Game), you'll be well on your way to consistent performance.


MINUSES


Options are easily the most fascinating financial instrument with several upside benefits, but also has an equally powerful set of negatives. 

1. Options have a steep learning curve. Don't expect to become Kasparov in a couple of months. Market Makers who are 99% of the time, the counter party to all Options trades, are Options professionals, with 10 to 20 years of experience, in performing their "legal duty" of providing liquidity. 

2. If you're interested in Options, try to NOT approach it with a mindset or requirement of making money. This is not only NOT going to happen, but it's a recipe for disaster. It's like a student of Medicine wanting to practice their skills after 2 months of study. 

3) As someone that has self-learnt Options and through making mistakes from Trial and Error, 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 

Having said that, if you can get past the first 12 months and acquire the expertise in a systematic manner with systematic approaches to every situation, true financial independence awaits. But you have some serious but exciting work to do before you get there, and I'm here to help you in this journey. 


And join me in my UDemy courses, where I share cutting-edge theoretical knowledge mixed with practical insights, strategy and impeccable execution approaches, through live trading examples. How do we know it's all this (don't just go by my word). Check what 50,000 students have to say in 8000 Reviews, with almost 90% of them being 5-Star or 4-Star

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)

- Technical analysis and Chart reading Bundle

- Advanced Options Concepts

- Options spreads and credit spreads Bundle


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

Hari Swaminathan

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