
Discover the basics of options trading by learning calls and puts, valuing premiums, probability of profit, debit vs credit, time decay, and how options can buy stocks at a discount.
Embark on a comprehensive introduction to options trading, respect your time and money, and receive clarifications or extra videos through feedback to grow your investment portfolio.
Learn the basics of call options, how they compare to puts, and how buying a call creates a bullish position using strike price, expiration, and 100-share contracts.
Explore option premium—the price you pay or collect for calls or puts—set by strike relative to the underlying, time to expiration, in-the-money versus out-of-the-money, and break-even.
Select the strike price that maximizes return while managing risk by analyzing option premiums at expiration, break-even, and potential time decay in call option trades.
Explore short selling in options trading, including selling to open, unlimited risk, and real-world examples with calls and puts, plus terminology like writing a call.
Buying a put gives the right to sell 100 shares at a set price, signaling a bearish bet with limited risk and potential profit as stock falls.
Learn how option premiums decay and break-even dynamics give buying options a low profit probability, around 30%, while selling options offers a different odds structure with buyer and seller.
Sell puts as a bullish strategy and collect the premium, using break-even at strike minus premium; anticipate rises, falls, or closing the position, while noting limited risk vs naked calls.
Explore bullish strategies that complement a buy-and-hold portfolio by comparing buying stock, buying a call, and selling a put, including risks and upside.
Understand the bid-ask spread in options trading, why buying at the ask overpays and selling at the bid is a raw deal, and identify the fair price between the two.
Learn break even prices for calls and puts: a 120 call bought for six breaks even at 126, while an 80 put costing three breaks even at 77.
Exit an options trade early by buying back a put or closing before expiration, not getting stuck. Manage emotions and adapt strategies to market conditions, seeking opportunities when others fear.
Understand expiration outcomes: exit positions before expiration to avoid exercise; if exercised, calls convert to 100 shares, puts to -100 or +100 shares, with brokerage exercise fees.
Use investor relations resources, SEC filings, and conference calls to gauge a company's sentiment. Analyze price to earnings, GAAP vs non-GAAP, and historical PE, then complement with basic technical analysis.
Make sure to use the discount code "INTROCOURSEDISCOUNT" when you register for the other course, "How to Trade Options to Complement a Buy & Hold Strategy".
This is not your typical "get rich quick" options trading course. I'm not creating this class from my hypothetical yacht and I'm not recording it in front of my Lambos that I rented just to impress you.
I am a conservative, buy & hold investor. For the vast majority of my investing career, I only held S&P index funds that mirrored the market. I had written off options trading as gambling and speculation. I beat inflation simply by dollar-cost-averaging.
But eventually I dipped my toes into the options world and I soon realized that there were many different trading strategies that I could use on top of my existing positions that would enhance my gains. I could allow my stock to continue to compound upon itself with no additional tax implications as I leveraged my existing positions to create gains from additional options positions.
This introductory course teaches you the basic building blocks of stock options trading, the skills that are essential to learn before enacting complicated options strategies.
We'll spend the majority of the course not only discussing call options and put options, but the basic principals associated with being long or short a position. We will also cover a few basics like how different options properties affect the value of an option's premium and breakeven price. We'll touch on the Greek factor of Theta and its time decay effect. Liquidity, volume, open interest, and the bid-ask spread are covered as well. We'll explain the difference between an initial credit and debit and their respective properties. And additional lessons will cover tax implications and compounding effects that come with selling stock, short-term versus long-term capital gains, and properties of long-term equity anticipation securities. The class also rounds things out with an understanding of short selling, inverse ETFs, quarterly earnings considerations, an overview of fundamental research, and how to leg into and out of a position.
If you've always been concerned with the risk associated with trading options, this class will ease you into things. The purpose here is for you to have a solid understanding of these foundational concepts before continuing on to learn complex, multi-leg trades.
legal disclaimer: information presented herein is for entertainment purposes only and is not a recommendation or an offer or soliciation to buy or sell any securities. Should you need such advice, consult a licensed financial or tax advisor. We cannot be held responsible for any direct or incidental loss incurred by applying any of the information offered. Securities identified do not represent all of the securities purchased, sold, or recommended to advisory clients. No guarantee is given regarding the accuracy of information in this course. The views and opinions expressed at the time of recording and any such views are subject to change at any time based upon market or other conditions and we disclaim any responsibility to update such views. These views should not be relied on as investment advice and because investment decisions are based on numerous factors, may not be relied on as an indication of trading intent.