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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 blow, but for complete details please visit the individual course links below.LEARN CALL OPTIONS AND PUT OPTIONSOPTIONS 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 I through III of a 4-course step-by-step program to achieving Options mastery.
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 Greekswill 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.
Course IV is on Options Spreads - This is the heart of Options Trading. Once you master Options spreads, you have acquired a skill that can generate consistent monthly income for the rest of your life.
Please feel free to browse this page for a complete list of Testimonials from our clients, Blog readers and Linkedin group members.
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|Section 1: Introduction to Call Options|
|Options as a financial instrument started trading in 1973 at the Chicago Board Options Exchange (CBOE). This instrument is purely conjured up from mathematics, which is an essential fact to always bear in mind. This lecture is a brief history of those developments starting from its earliest use in Greece in 300 B.C.|
|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.|
|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.|
|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.|
|Risk Graphs are a critical component of all Options strategies. This is your starting point for understanding these critical tools.|
|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.|
|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.|
|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.|
|All three varieties of Options - ATM, ITM, and OTM Options are plotted on a risk graph for Apple (AAPL) Options.|
|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.|
Introduction to Options Quiz
|Section 2: Introduction to Put Options|
|Primer on Put Options and brief recap of the Call Option. The Put Options has some special characteristics that are different from Call Options.|
|The formal definition of Put Options as well as the differences between a Call Option are explained.|
|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.|
|Risk graphs for Put Options are the symmetrical opposite of Call Options. Put Options also have one big difference from Call options when it comes to maximum profits for the buyer. This characteristic is explained.|
|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.|
|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.|
|We will be repeating this aspect many times because its important. Options sellers are different from Option buyers. Option sellers are THE INSURANCE COMPANY. Their risks are much higher than Option buyers. You can see why this is the case.|
|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.|
|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.|
|Section 3: Using Stock and Options combo strategies for Stock investors|
|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.|
|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.|
|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.|
CONCLUSION OF INTRODUCTION TO OPTIONS SECTION
Introduction to Options Quiz 2
|Section 4: TIME DECAY AND OPTIONS PRICING|
|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.|
|Using the same examples from the real world, we now take a look at how Time decay is represented in real Apple (AAPL) Options.|
|Continuation of the previous lecture but this lecture covers entirely different characteristics of Time decay.|
Time Decay Quiz
|Section 5: IMPLIED VOLATILITY AND OPTIONS PRICING|
|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.|
|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.|
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.
|Section 6: Complete analysis of Option Greeks (Delta, Gamma, Theta and Vega)|
|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.|
|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.|
|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.|
|Vega is the all-important Greek that measures sensitivity to Implied Volatility. Never take your eyes off Vega in any Options strategy.|
|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 :)|
|Section 7: Options Market Structure|
|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.|
|A continuation from the previous lecture about the unique characteristics of the Options market.|
|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.|
Implied Volatility Quiz
Option Greeks quiz
|Section 8: Buying Call and Put Options - Options beginner strategies|
|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.|
|We picked Chipotle Mexican Grill as our candidate for the Long Call. Why did we pick CMG ? Any time, you enter a stock, you need a basis or a trade rationale. This is the most important consideration. And once you enter it, you must have preset targets for exit based on current conditions. And its always a good practice to calculate your exit point based upon the Return on Investment (ROI). This is a live trade all the way to exit.|
|Section 9: Live Long put trade on FXE - Euro ETF|
|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.|
|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.|
|The trade is absolutely "milked" for winnings. The trade lasts for about 25 days where we ride the winnings with sophisticated order management.|
|Section 10: Strategy and optimization of Single Option Trades|
|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.|
|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.|
|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 Optimization is a case study on Linkedin (LNKD) - Which strategy is appropriate at this time for LNKD and why.|
|Similar case study on Caterpillar (CAT). The goal is to become better in identifying good trade ideas and good entries.|
|Section 11: Adjustments for Single Options|
|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.|
|Discussion of the types of adjustments you can make for a Long call position.|
|This lecture is a discussion of the kinds of adjustments you can make for the other 3 single Options.|
|This is the conclusion of this course. A sneak preview into the next course is provided.|
Criteria for Long Options Quiz
Strategy and Adjustments Quiz
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, and developer of proprietary Intellectual Property around enhancing base case Options strategies (which favor the Market Makers) and turns that deficit into a massive EDGE on the trader's side.. Like building a "powerful Strategy for all Option Strategies". Hari is self-taught in Options and actively trading these instruments for almost 10 years. Hari has a Bachelors degree in Engineering from India, and MBA's from Columbia University in NYC and London Business School in London UK.
More than ever, its become important for normal people to take charge of their financial situation, and attempt to create additional income streams, or build wealth for the Long Run, in a smart, risk-controlled manner. This is precisely my mission. Through Knowledge, Education, and disciplined Money management approaches. Video-based courseware, Practical workshops , a 4-week Live Mentoring program and several other channels.
Let's break down the Options game in a brutal but realistic manner.
1. Options were invented out of thin air. And the people who invented it won Nobel Prizes for their invention (Fisher and Black). It is purely a "Mathematical" concept, with no real connections to the external except for one, that's defined implicitly by its deign.. Its the relationship between an Option and any Asset in the real world,.The associated relationship with any asset's price behavior in precisely defined time frames. In common language, it tries to answer a fundamental question underpinning all of humanity. What kind of mathematical model can help us define the risk of certain events happening, or not happening. The model is very similar to the Insurance industry who basically provide the odds calculated bty large and wide samples of data. It's only then they can provide somewhat of an accurate quote, based on Data science, Statistical Modeling and a heavy dose of Probability theory.
2. This gives birth 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., but much more powerful and sophisticated approaches. In many cases, you don't need to see what the stock or the larger markets are doing. These numbers are embedded in the mathematical formulas that underpin Options.
3. Because everything in Options is defined in mathematical terms, its also important to realize that OPTIONS will always be the same. The math behind Options will always be the same. forever. Unless they discover serious flaws iin the formulas that tries to determine the fair Option price based on the kind of asset, its price action, Highs and Lows as defined in statistical terms over a certain fixed time frame. It should make some amount of intuitive sense, even if you can't nail it precisely at first..Things like Price Volatility in the "underlying asset, the time lkeft for the Option to expire (Every Option is created with a fixed period of life, and all Option die at some time (They expire) . But the short life that many Options go through, its a wild life, filled with roller coaster like adventures,.
4. As an analogy, you can make comparisons with the game of Chess. You may agree that Chess is a game of "skill". It's a game of strategy and 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 properties. The reason we know its a game of skill is : Try to play 100 chess games with Kasparov or Anand. Normal people are guaranteed a loss in all 100 games. And why do we know its underlying features are mathematics based L The reason that computers like Deep Blue can beat Kasparov by a majority, and as computer processing power has increased exponentially by many 1000's of times,, the human number crunching powers have pretty much been constant. So today all professional Chess players refuse to play the machine, because while they used to lose to them by majority, today it's almost guaranteed that they WILL LOSE EVERY GAME.
5. Lastly Options are just like Chess. They are a "skill set", and requires acquiring a deep set of analytical skills much more so han most skill sets, but can only be mastered over a period of time. We cannot turn into a Kasparov in a matter of weeks or even a few month. It does NOT work like that. But once you go through this process that can go for 1 to 2 years or more, there is a powerful light at the end of that tunnel. You build a skill set for life which means things like Age or geographical location, Lifestyles, Weather are no longer a barrier to create a consistent income streams strategically regardless of who you are, where you are, or how old you are. This is POWERFUL stuff. Now let's look at the negatives.
Options are easily the most fascinating financial instrument with several upside benefits, but they an equakky powerful set of minuses.
1. Options have a steep learning curve. Gon't expect to become Kasparov in a couple of months. Or even a year or two. You caan bbuild a Kas[arov or Anand in those timeframes. And why is this important to realize, Because we are playing a Kasparov or Anand every time we enter the Options market. Market Makers who are 99% of the time, the counter party to all Options trades, are Options professionals. with 10 to 20 years with exoerience in Optioms. . The company has entrusted the responsibility of providing liquidity to the market which is a :legal duty" but can have disastrous consequences. While we have hours tp plam our attaacks, the Market Maker literall seconds for a trade. In a normal day, a market maker can do many thousands of trades. One can omly be in awe of their skills.
2. If you're interested in Options, sp=o NOT approacg it with a mondset of or rewuirement to ,aking ,omey. This is not only npu goimg to happen, but iys a recipe for disaster. It's like a student of Medicine waning to ptactice thei skiils after 2 monyjs of study, Keepimh with the Chess analogy,, because its the best way to think about Options before you actually know Options. To develop a meaningful batting average, you will need Time, Patience, and Disipline. They domt develop overnight. Ifyou focus completely on the learning ideally practicing on paper money accounts
are powerful, but they have a learning curve. I've broken down all the complexities of Options in simple language that everyone can understand. The courseware uses real trade examples, always highlighting the pluses and minuses of every investment situation. Options provide the best way to take advantage of bull cycles, bear cycles and everything in between.
As someone that has self-learnt Options and through making mistakes, 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 and not lose money during this time.
Having said that, if you can get past the first 12 months and acquire the expertise in a systematic manner, true financial independence awaits.
You can trade Options from anywhere in the world, regardless of how old you are. You never have to worry about job security any more because you have a skill that can produce consistent wealth month after month.
But you have some serious but exciting work to do before you can get there, and I'm here to help you in this journey.
Watch my Free Course for Options Trading Beginners where I draw out a detailed roadmap of what this 12-month journey looks like, and the specific strategies you should master during each step of this learning process.
Watch my Free Mini-courses or my YouTube channel , all of which have the highest quality of education material.
And join me in my UDemy courses, where I share cutting-edge theoretical knowledge mixed with practical insights, strategy and impeccable execution through live trading examples.
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)
Advanced Options Concepts
Options spreads and credit spreads Bundle
Technical analysis and Chart reading Bundle
After this, the order does not matter. You can take any of the courses as per your interest.