Options Trading Basics (3-Course Bundle)
4.5 (4,572 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.
27,658 students enrolled

Options Trading Basics (3-Course Bundle)

A bundle combines 1)Intro to Call and Put Options 2) Time decay, Implied Volatility, Greeks 3) Call and Puts Live trades
4.5 (4,572 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.
27,658 students enrolled
Created by Hari Swaminathan
Last updated 12/2019
English
English, French [Auto-generated], 5 more
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Price: $149.99
30-Day Money-Back Guarantee
This course includes
  • 11.5 hours on-demand video
  • 11 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
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What you'll learn
  • Master the basic nuts and bolts of Options trading
  • Understand the theory and mathematics behind Options
  • What are the factors that affect Options pricing
  • How are Options different than Stocks
  • How you can use Options even if you invest in Stocks and create superior Combo strategies
  • Anyone interested in learning about Options trading
  • LIve trades using Thinkorswim platform
  • Art of adjusting Single Options strategies
Requirements
  • Some knowledge and experience with stock markets and trading or investing
Description

THREE COURSE BUNDLE - 10+ HOURS

  The first 3 Options Trading Strategies courses are combined to create this bundle. To master the basics of Options, you really need all three courses.

  A brief synopsis of the options trading strategies courses are provided below.

LEARN CALL OPTIONS AND PUT OPTIONS, OPTIONS FOUNDATION - TIME DECAY, IMPLIED VOLATILITY, OPTION GREEKS  BUYING CALL OPTIONS AND PUT OPTIONS - LIVE TRADES 

  SECTION I -  Call Options 

  Most people learning Options for the first time face too much jargon and complex language. This options trading strategies course use real-world examples (buying a house) to explain how a Call Option (Section 1) works in real life. This example should make it absolutely clear what a Call Option is in step-by-step details. 

  SECTION II - Put Options.  

  The Put Option is the ultimate "protector" of your portfolio, and in this course you can learn how Put Options work. It is the exact opposite of a Call Option. Put Options increase in value when the value of a stock or index drops in price. We define what a Put Option, and just like we did in the Call Option, we consider a real-world example of a Put Option. 

  SECTION III - Stock and Options combo strategies 

  In this section, three creative strategies are outlined for Stock investors to combine Options into their portfolio strategies. 

  ·  Use Options to buy Stock at prices that are far lower than what the stock is currently trading for 

  ·  Use Options to sell Stock at prices that are far higher than what it is currently trading for 

  ·  Use Options to hedge a Stock position that you already own 

  SECTION IV - TIME DECAY 

  Time decay is a pivotal component of Options strategies. In fact, time decay alone is responsible for the majority of advanced option strategies. In this part of the options trading strategies course, we are going to study the concept in detail. Options are "wasting" assets, and they lose value every day. The buyer gets hurt from time decay and the seller benefits from it. And time decay becomes more exponential as we approach expiry of an Option. It is also the great equalizer between the profiles of a buyer and seller of Options. Time decay is the great equalizer in the risk / reward profiles of buyers and sellers of Options. Several intermediate and advanced strategies are based on selling premium (option sellers) and these positions make a profit due to time decay in the value of these options over a period of time. 

  SECTION V - IMPLIED VOLATILITY  

  Implied Volatility is the "wildcard" in Option prices. Ignore it, and you will pay a price. In fact, it's so important we have at least four different varieties - Volatility, Implied Volatility, Historical Volatility, and Future or Expected Volatility. We use the real-world examples to explain the concept of Volatility in simple terms. Then we study how Volatility is quantified in Stocks and Options. And how Volatility finds a back-door to embed itself into Option prices. Implied Volatility considerations are critical when choosing between a buyer and seller profile. We break this complex topic down into simple terms and show you an example of NFLX and CAT options that should make it absolutely clear what this is all about. 

  SECTION VI - OPTION GREEKS, DELTA, GAMMA, VEGA, THETA 

  If you're the pilot of an aircraft, the Greeks are your instrument panel. If you don't manage your instrument panel properly, well...you get the picture. Understanding the Greeks are absolutely critical to every Option position. We break this course into easy to understand chapters for all the four Greeks - Delta, the king of all Greeks. Gamma - the silent operator. Theta - every Option seller's dream. And Vega - Watch out for this one.. Most beginners to Options tend to ignore the Greeks. Master the Greeks and you'll shave off months of learning curve. Not to mention, you can then fly your aircraft on "auto-pilot" (with help from the Greeks). 

  SECTION VII - OPTIONS MARKET STRUCTURE 

  The Options market has a number of terms that we need to be aware of. Starting with terminology differences like "Long" and "Short", we look at all the details that go into the Options market. We explain the important processes like Exercise and Assignment, as well as things like Expiry series, Bid-Ask spreads, Brokerage and transaction costs and various other details. What is Open Interest and why is it important, and what is the role of a Market Maker. We study the different Order types and which ones are important for the average investor, and which ones make sense in different situations. We also discuss Regulation T Margin as it applies to Options as well as Portfolio margin. 

  SECTION VIII - 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 options trading strategies 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. 

  SECTION IX - 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. 

  SECTION X - 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. This course also provides a sneak peek into advanced Option topics like the VIX (Fear index"), trade simulation as well as trade adjustment parameters. 

  SECTION XII - SINGLE OPTION ADJUSTMENTS  

  This options trading strategies 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. 

  This bundle consists of  Courses  

  Course I - Introduction to Options - Learn about Call Options and Put Options is a detailed step-by-step explanation of Options, Call Options and Put Options with theory and practical application with Apple (AAPL) Options 

  Course II - Options Foundation - Time Decay, Implied Volatility and Options Greeks will complete your theoretical understanding of Options. 

  Course III is Options strategies for Beginners - Buying Call Options and Put Options where we actually put live trades and manage them to their exit points.


Take this ultimate Options Trading Strategies course right now and learn options trading. 

Who this course is for:
  • Anyone interested in learning about Options trading
  • A bundle deal that covers all the basics of Options for beginners
Course content
Expand all 47 lectures 11:14:43
+ Introduction to Call Options and Put Options, Buyer and Seller Perspectives
16 lectures 02:32:49
Options and Stocks have a very different risk and reward profile. This lecture addresses some of these differences. Please also view the supplementary video attached.
Preview 08:05
Most beginners have a hard time understanding Options because they are introduced with too much jargon. This simple real estate example will make it absolutely etch the concept of a Call option in your mind forever.
Understanding Call Option details through a Real estate example
06:36
In any Option, there are three varieties - In-the-Money Options, At-the-Money Options and Out-of-the-money Options. The real estate example is extended to explain these concepts.
What are In-The-Money (ITM), At-The-Money (ATM) and Out-of-The-Money (OTM) Options
11:38
Risk Graphs are a critical component of all Options strategies. This is your starting point for understanding these critical tools.
Buyer and Seller risk profiles, Risk Graphs, Seller advantages
08:35
An Option chain and quote screen can be confusing to beginners. This lecture explains the screens in detail. This is the introduction to the Thinkorswim Options trading platform. Please also see the supplementary video on Option quotes and screens.
Option screens, option chains, Expiry series and Call Option layout
14:40
Real Apple (AAPL) Options are studied and the concepts of ATM, ITM and OTM Options that were discussed in the real estate example are clearly explained using AAPL Options.
Choice of expiry series and ITM, ATM and OTM Options when looking at AAPL Options
09:18
When looking at the Profit and Loss diagram for any Options strategy, you must understand there are two components to this graph - The first is the "real-time" picture which is the line in white, and the second is the situation on the day of the expiry of the Option. This is the red line. It's critical to understand how the white line collapses onto the red line as we approach expiry.
Call Option performance in real-time and on the day of expiry
07:38
All three varieties of Options - ATM, ITM, and OTM Options are plotted on a risk graph for Apple (AAPL) Options.
Risk Graphs of ITM, ATM and OTM Options
12:10
An Option seller is very different from an Option buyer. The risk and reward profile is very different from each other. This is unlike the stock market where the buyer and seller have similar but opposite profiles. In the Options world, the buyer and seller have symmetrical, opposite and unequal risk and reward profiles.
Option Sellers risk profile
09:35
Similar to the lecture on Call Options, Put Options are best explained with a real-world example. Fortunately, we have excellent examples of Put Options in real life - INSURANCE. When we buy insurance on our car or home, we're actually buying a Put Option. This is explained in simple language.
A real-world example of Put Options - Buying Insurance
18:25
Introduction to Options Quiz
4 questions
Understanding the layout of a Put Option screen can be a bit challenging for newcomers. This lecture focuses on the layout for Put Options. If you're still confused after watching this lecture, this is normal. Watch how these Options move for a day or two and you'll figure it out.
Put Options quotes and screens on a Trading platform
08:01

The real-world Insurance example is extended to Apple (AAPL) Options on the Thinkorswim trading platform. ITM, ATM and OTM Options are explained in detail. There may be some repetitions, so please feel free to fast forward it.

More examples of Option Chain Parameters for Put Options
11:40

AAPL older example of Put Sellers. 

Older example of AAPL Put Option sellers
06:47
This is a sneak peek into an advanced concept of Options spreads. If you're a seller of Options, you can control your risks and this lecture shows you how. It is normal if you don't fully understand this technique. Option spreads are covered in detail in a later course, but there is more to learn first.
Using Put Options spreads to limit risk
08:44
Introduction to Options Quiz 2
5 questions
CONCLUSION OF INTRODUCTION TO OPTIONS SECTION
04:30
+ Introduction to Time Decay, Implied Volatility and Option Greeks
10 lectures 03:15:22
Time decay is a pivotal component of Options trading. In fact, Time decay alone is responsible for over 60% of all advanced Options strategies. This is exciting stuff.
Explaining Time Decay in real-world examples of Real estate and Insurance
42:48
Time Decay Quiz
4 questions
What is Implied Volatility ? What is Stock Volatility ? And why should we care about it - Implied Volatility is the "wildcard" in Options pricing. Ignore it and you will pay a price. Pay very close attention to the three lectures in this section.
Explaining Implied Volatility in real-world examples of Real estate
32:45
If we don't know what the "future volatility" of the stock is going into the future, how can we calculate the price of Options now ? This lecture explains how Implied Volatility finds a back-door to manifest itself into Option prices every minute the markets are open for trading.
Implied Volatility computation - How is Implied Volatility reflected in Option Prices
05:56
If you ever had a doubt about the severe impact that Implied Volatility can have on Options prices, your questions are answered in this lecture.
Implied Volatility in action - CAT and NFLX Options. Buyer / Seller implications
12:03
Implied Volatility Quiz
4 questions
What are Option Greeks anyway ? And why do we need to know them ? There are 3 pillars of Options trading. If you don't master any one of them, you're going to underperform. Option Greeks are the first pillar.
Option Greeks primer
31:14
Your Options position is always going to be most responsive to the movement of the stock itself. And Delta measures this sensitivity to price movement, and that's why its the King of the Greeks. 
Option delta (The king of Greeks)
18:54
Price movement of the stock is so important for your Option price that we need a second Greek to measure this sensitivity. Gamma is the silent operator, the first derivative of Delta, and the second derivative of Price. After going through this lecture, if you're somewhat confused about how Gamma works, you might be comforted to know that it takes most people a year to understand Gamma. Fortunately, the effects of Gamma are small and become important only in one particular scenario. This is explained in detail.
Option Gamma
18:07
Vega is the all-important Greek that measures sensitivity to Implied Volatility. Never take your eyes off Vega in any Options strategy.
Option Vega
12:41
Theta is the Option seller's dream - Theta is the time decay for every Option represented by a daily loss number. You can conjure up any number of exotic strategies with Theta. Theta is what makes Options come to life. This is by far the most exciting greek :)
Option Theta
13:46
Option Greeks quiz
4 questions
This lecture is the conclusion of this course. You have now covered the theory behind Options. It's now time to get into live trading examples, where you'll realize that this theoretical knowledge is just the starting point. Thank you for taking this course. I'm attaching a copy of my Free E-book on the "Top 7 Options Trading mistakes" by Options traders. This e-book is a great read, and even though you may not grasp a few of these concepts, you'll know what to look forward to in the upcoming courses. 
CONCLUSION OF OPTIONS FOUNDATION PART OF BUNDLE
07:08
+ Buying / Selling Call and Put Options - Options beginner strategies
4 lectures 01:46:02
When do you buy a Call Option or a Put Option ? What are the considerations ? The most important criteria is of course your outlook for the stock. If you feel that the stock is going to go up (based on some analysis), you buy a Call Option, or if you feel the stock is going to go down, then you buy a Put Option. Where Options are different from Stocks is that you also need to have a timeframe for your outlook.
Long Calls (Buying Call Options). Live trade on CMG (Chipotle Mexican Grill)
33:04

This is a Live Short Call trade on the Gold ETF (GLD)

Short Call trade on GLD (Gold ETF)
22:55

Why did we choose the FXE as our candidate for the Long Put ? And how did we do on trade entry ? And once the trade goes in our favor, how can we manage the trade to ride a winner nicely. The trade is absolutely "milked" for winnings. The trade lasts for about 25 days where we ride the winnings with sophisticated order management.

Long Put trade idea and entry on FXE
29:22

Short Puts trade on Goldman Sachs, with not great Market timing.

Short Puts (Selling Put Options) using GS (Goldman Sachs) as example
20:41
Criteria for Long Options Quiz
4 questions
+ Options Market Structure, Strategy Box and Case Studies
8 lectures 01:59:19
The Options market is vastly different from the Stock market. It has different rules, different terminology and everything about it is different. In this lecture and next, these differences are explained in detail.
Order types, Transaction costs, market Makers role etc
35:21

 Has some extra info, but also has some repetitions, so please feel free to skip parts.

Bid-Ask spread, Expiry series, Exercise and assignment, Volume and Open Interest
15:10
We have a total of four basic Options strategies - We have a Call and a Put and you can buy or sell each of them. These 4 strategies make up the basic Options strategies. Two of these strategies are bullish and two are bearish. And to confuse things more, one bullish strategy uses Calls and one uses Puts. To easily understand or remember this complexity, we've created a 4-strategies Box. Also included is a video on how Options can be a much more capital-efficient instrument than Stocks. 
The four strategies BOX - Call and Put Options
08:10
We've always mentioned that a seller's profile is different from a buyer's profile. The risks and rewards are different. In fact the risks are very high. In this lecture, you will become clear why the seller's profile is like that of the Insurance company - low rewards, high risks.
Pitfalls of Short Calls and Short Puts
11:40
When dealing with Single Option strategies, we have 4 choices. You can go for a Long Call, Long Put, Short Call and Short Put. How do you choose between these strategies ? Bear in mind, once you consider all the factors, one of these strategies is going to be the ideal one for the outlook, and you must pick that one.
Four Strategy choices - 2 Bullish and 2 Bearish
19:39
Before entering a trade, there are several considerations - and one of the primary ones is the "trend" of the overall market. This case study analyzes the S&P 500 Index against a few major stocks like AAPL, GOOG and PCLN.
Strategy Case study - S&P 500 Index and GOOG, AAPL and PCLN
08:42
Strategy Optimization is a case study on Linkedin (LNKD) - Which strategy is appropriate at this time for LNKD and why.
Strategy case study - Linkedin Trade idea
08:34
Similar case study on Caterpillar (CAT). The goal is to become better in identifying good trade ideas and good entries.
Strategy Case study - CAT Trade idea
12:03
+ Adjustments for Single Options
4 lectures 59:43
Adjustments are the the third leg of Options trading which everyone must master. Adjustments are an art, and some of it will come only with experience in different situations. However, one can get a head start if you know what to look for and what to do.
Philosophy of Adjustments
09:39
Discussion of the types of adjustments you can make for a Long call position. 
Adjustments for Long Call positions
15:03
This lecture is a discussion of the kinds of adjustments you can make for the other 3 single Options.
Adjustments for Short Calls, Long Puts and Short Put positions
15:42
Part of good trade management is the ability to protect your winnings. Trading platforms provide us with sophisticated tools to achieve this. This lecture shows you can protect your winnings in a nice trade.
Trade Management using sophisticated Conditional Orders
19:19
Strategy and Adjustments Quiz
4 questions
+ Using Stock and Options combo strategies for Stock investors
5 lectures 41:28
In this tactic, Put Options can be used effectively to buy stocks that you love at a price that you love even more. This is a very powerful strategy if you already invest into stocks, and you'd like to use Options to creatively buy your stocks.
Using Options to buy Stock at much lower prices than what its currently trading for
10:36
This is the reverse of the earlier tactic. If you already have stocks that are profitable, you can sell that stock at prices that are much higher than what the stock is currently trading for.
Using Options to sell Stock at much higher prices than what its currently trading for
07:29
You've heard me say that Put Options are the ultimate protector of stock you own. You can see how this is true by taking a real example.
Using Options to hedge Stock that you already own
10:51
This is the conclusion of this course. A sneak preview into the next course is provided.
CONCLUSION OF BUYING AND SELLING CALL AND PUT OPTIONS
05:22
BONUS LECTURE - DONT MISS !!
07:10