Learn Call Options and Put Options - Introduction to Options
What you'll learn
- Learn the basics of Options and Call Options
- Understand the basic parameters of how Options work
- Understand the differences between trading Stocks and Options
- Key objective is to provide a strong foundation for continued learning in the more advanced topics in Options trading
- Learn about In-the-Money, At-The-Money and Out-of-The-Money Options
- What is Intrinsic value, Extrinsic Value and Time value
- Differences between Buyers and Sellers of Options
- Risk and Reward profile of Buyers and Sellers
- Profit & Loss and Risk Graphs of different Options
- Understand how Options are structured in financial markets using Apple (AAPL) Options as an example
- All of the above applies to both Call Options (Section 1) and Put Options (Section 2).
- Basic knowledge of financial markets
- Some knowledge or experience with Stocks
Section 1 is on Call Options
Most people learning Options for the first time face too much jargon and complex language. This 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. The course first defines what Options are, and in particular, what a Call Option is. It explains the differences between Option buyers and sellers, and the differences in their risk and reward profile. Several basic Options concepts like At-the-money, Out-of-the-money, and In-the-Money Options, and Risk Graphs are also introduced in this course. The profit and loss graphs for all three types of Options are explained in clear terms using AAPL Options.
Section 2 is on 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. Fortunately, we have excellent examples of Put Options in real life - when we buy Insurance for our car or home, we are actually buying a Put Option. This example should make it absolutely clear what a Put Option is. The course looks at buyer and seller perspectives in a Put Option transaction, and analyzes the breakeven, and profit and loss profiles, all using the real world example first. Finally, just like the Call Option section, AAPL Options are studied in detail to understand how Put Options work.
The last lecture is a recap of the four basic Options strategies (Buying a Call, Selling a Call, Buying a Put, and Selling a Put). This part is usually challenging to newcomers, so this is explained in detail with tricks and tips on how to remember this instantly until you've become very familiar with all the four Options strategies.
Section 3 - Using Stock and Options combo strategies for stock investors.
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
What you will master (Section 1 on Call Options)
The history of Options in the financial markets
The factors that affect Options pricing
The formal definition of Options and Call Options in particular
The Rights and Obligations of Option buyers and Option sellers
The fundamental differences between Stocks and Options
An excellent real estate example of a Call Option
What are At-the-money (ATM), Out-of-the-money (OTM) and In-the-money (ITM) Options
What is Intrinsic Value, Extrinsic Value and Time value in Options
The risk profile of buyers and sellers of Options
The advantages for the seller of an Option
How real Options are represented in the financial markets
Translate Options used in the real estate example to real AAPL Call Options on the trading platform
Explains the Option chain, the different Expiry series and the selection of the appropriate Call Option for a bullish strategy
How Option chains are laid out on a real platform
Detailed analysis of an Option seller's position
Demonstrate how the three types of Options work on AAPL Options
Profit and Loss graphs for buyers and sellers of AAPL Options
What you will master (Section 2 on Put Options)
Definition of a Put Option and its rights and obligations
Learn Put Options using a simple real-world example (Insurance)
What is a Put Option and how is it the opposite of a Call Option
Why is a Put Option the "ultimate protector" of your portfolio
A real world example of a Put Option we are all familiar with
How Put Options make money in bear markets
Buyer and seller perspectives of Put Options
Breakeven analysis and Profit and Loss graphs for buyers and sellers
Understand the layout of Put Options on the Thinkorswim platform
Compare real world Options to Options in the financial market
Study AAPL Put Options in detail
Profit & Loss graphs and risk profiles on the platform
The Seller's perspectives in a Put Option
In Section 3, you will master the art of combining Options strategies with Stocks. If you're already a Stock investor, you will learn to create consistent monthly income, as well as learn the ability of Options to protect your Stocks.
TOTAL COURSE LENGTH - OVER 3.5 HOURS
BONUS VIDEOS - 40 MINUTES
TOTAL - OVER 4 HOURS
Who this course is for:
- Anyone interested in learning Options trading
- Anyone interested in using Options as a source of second income
- anyone that intends to make Options trading as a source of long-term income
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.
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.
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.