Crash Course Trading: Technical Analysis and Options Trading

Prices move in the opposite direction: when price tries to go up, it fails and forms lower highs and lower lows, signaling a downtrend.

Explore how bulls and bears drive demand and supply, creating price moves, breakouts, and sideways ranges, with support and resistance levels where buyers and sellers steer action.

Identify support and resistance by marking price highs and lows with horizontal lines, note areas where price stalls or reverses, and watch breakouts and retests using historical data.

Identify diagonal trend lines to map support and resistance using lows and highs, forming a rising channel that guides future price action through historical data.

Learn to identify support and resistance through price action, confirm breakouts with bullish candles, set profit targets at resistance, and adapt to continuations toward new highs.

Learn how volume signals liquidity and bullish or bearish energy, identify breakouts with volume, and use support, resistance, and trendlines to anticipate pullbacks and protect profits with stop losses.

Choose stop losses as automated orders placed when price moves below critical levels, and use trend lines, support areas, and prior floors to set profit targets and evaluate risk reward.

Master the risk-reward ratio by risking $1 to aim for $3–$4 gains, use stop losses and trailing stops to protect profits, and adjust stops as price moves.

Explore moving averages, including the 50 simple moving average and the 8 EMA, to gauge trend and identify short-, intermediate-, and long-term price support.

Master technical analysis with price action and risk-reward calculations. Learn how options provide lower-cost stock exposure and protect investments.

Explore how to apply technical analysis to stock price movements and convert that insight into real trades using options, designed for rookies.

Learn how probability of profit compares stock purchases and option trades, and how calls and puts offer leverage, cheaper control of 100 shares, and expiry affects profitability.

Explore how verticals combine buying and selling calls or puts to define risk, learn about long (debit) verticals, and relate option strategies to risk awareness.

Understand strike prices as the target price moves away from the stock, and recognize that each option chain contains multiple strike prices across multiple expiration cycles.

Learn to trade options with a consistent, risk-managed approach, using weekly setups and vertical or iron condor trades through the essential income system and pro trader academy.

The presentation primarily uses Tastytrade as the trading platform, with a few slides drawn from thinkorswim via Charles Schwab (formerly TD Ameritrade).

Turn a long call into a five-dollar wide vertical by buying the 95 and selling the 100 call, a $500 max area with about 35% probability of profit.

Explore how a call vertical spread works, using a 1600/1610 example to show a $1,000 width, max loss $550, max profit $450, and the sliding profit-loss scale.

Set up a call vertical on the trade page by buying a below-price call and selling an above-price call, with stock between strikes and debit (times 100) equal to cost.

Explore how vertical option spreads manage risk on big stocks by sizing trades to strike width, with examples of max loss and max profit and viable small-scale trades.

Explore put verticals by buying puts above the stock price and selling puts below it, defining max profit and max loss within the strike width of a five dollar vertical.

Build a put vertical on the trade page, reversing the call setup, with max loss limited to premium and max gain equal to the strike difference minus cost, 52% gop.

Select expiration cycles near 45 days when buying call or put verticals to favor duration over direction. Aim for about 50 cents per dollar in strike price for vertical buys.

Apply train rule number one by trading near 45 days to expiration and buy verticals instead of stocks to reduce risk and boost returns, as shown by a 320–325 vertical.

Learn to trade options from zero to seven days, covering what options are, stocks vs options, and basic strategies like verticals and trade management; ebook and free course for 9.99.

Explore widening verticals by adjusting strikes to manage risk and scale trades, increasing potential reward while maintaining about 50 cents per dollar in cost and preserving PMP.