Stock Options Intermediate - I
What you'll learn
- In this class we will go through the spreads of 'Stock Options' created by a pair of options.
- Spreads can provide us with better control on the risk-reward balance.
- We will cover the following in this course:
- Vertical Spreads (Bull Call Spread, Bear Call Spread, Bull Put Spread, Bear Put Spread)
- Straddles (Long Straddle, Short Straddle)
- Strangles (Long Strangle, Short Strangle)
- We will do whiteboard sessions to make sure the concepts become easy to follow and understand.
- We will also do a live demo on a terminal to see how orders for these spreads can be created easily.
- Recommended to take the course "Introduction To Stock Options"
Hello Dear Students,
In the first course 'Introduction to Stock Options' we covered the fundamentals of stock options and explored the usage of buying and selling single call and put options.
In this class we will go through the spreads of 'Stock Options' created by a pair of options. Spreads can provide us with better control on the risk-reward balance. We will cover the following in this course:
· Bull Call Spread
· Bear Call Spread
· Bull Put Spread
· Bear Put Spread
· Long Straddle
· Short Straddle
· Long Strangle
· Short Strangle
The course is divided into three modules
Module 1: Introduction
Please Read This Before Continuing 00:52
Scope of This Course 03:36
Module 2: Vertical Spreads
Vertical Spreads - Bull Call and Bear Call 01:40
Bull Call Spread - Whiteboard 08:26
Bear Call Spread - Whiteboard 08:25
Bull Put Spread - Whiteboard 06:39
Bear Put Spread - Whiteboard 06:19
Summary of Vertical Spreads 01:53
Module 3: Straddles and Strangles
Straddles - Long and Short 02:00
Straddles - Whiteboard 06:43
Strangles - Long and Short 01:59
Strangles - Whiteboard 04:24
Summary - Straddles and Strangles 01:58
Demo on ThinkOrSwim 07:38
Instead of an end of course quiz, I suggest doing a 'hands-on' project.
I recommend using a 'paper trading' account (with ThinkOrSwim or any other platform) for the project.
Step 1. Create a Long Strangle on a stock of your choice, with the following parameters
· Stock price >$100 per share
· Strike spread of $10 or more
· Maximum Debit of $2,000 (i.e. $20/share)
· More than 3 months until expiration
Step 2. Find the breakeven points, max profit, and max loss of the long strangle.
Who this course is for:
- Anyone who wants to level up their investment strategy beyond buying shares in stock market.
I am Sumeet, and I started the websites StartOptions and FinPins - be finlightened (finance + enlightened) out of a passion to empower more people with the right knowledge on investing and trading stock options.
The more I talk to people, the more I am shocked to learn the state of financial awareness. I reflected back on my own life and realized that there’s little to no formal education provided in schools (and even colleges) regarding apparently the most important aspect of an adult life – finance! Even less education (reliable, trustworthy, high quality) is available on investing in the stock market.
I have met people who have lost huge amounts while betting on stock options without even fully understanding the risks that come with trading options. Let’s change that!
I am committed to simplifying the language so that anyone can understand how stock options work, and what are the risks and benefits of trading stock options.
I was lucky enough to know about right resources early on in my life and, initially, self-taught finance to me through trusted online resources. Later I took on college level courses in economics and finance, further added to that with an MBA with a focus on finance at Emory University.
With the educational background and 10+ years of personal investing experience, I decided to break down the complex world of investing in simpler language so anyone can understand it and utilize the knowledge well.