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Options Spreads Bundle- the heart of Options Trading

Master the art of constructing and managing Option spreads, and you have a skill to produce consistent monthly income.
4.3 (28 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
522 students enrolled
Last updated 2/2013
English
$10 $120 92% off
21 hours left at this price!
30-Day Money-Back Guarantee
Includes:
  • 3 hours on-demand video
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
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What Will I Learn?
Learn and understand the four vertical Option spreads
Spreads are the starting point to create consistent monthly income.
Understand how "live" trades are constructed with strategy, chart analysis and execution
View Curriculum
Requirements
  • Introduction to Options - https://www.udemy.com/learn-options-trading-introduction-call-put-options/
Description

SECTION I - PHILOSOPHY AND DEFINITION OF SPREADS

We introduce all four Options Spreads in this Bundle (Bull Call, Bear Call, Bull Put and Bear Put). This bundle is a very comprehensive coverage of all four Option spreads. Options spreads sit right in between the 4 basic Option positions and the more Advanced level Option strategies. The Spread is the bridge between the basic Option strategies and the advanced strategies. In fact, most advanced strategies are composed of the spreads we cover in this course, so this stuff is key. For the busy professional, Spreads offer the right mix of reward and risk. All 4 vertical spreads introduced in this course are extensions of the 4 basic Options. Spreads add an element of cost control and / or risk control to individual Options positions. Master the four Options Spreads, and you would have acquired a skill that can create consistent monthly income. Additionally, you'll be well on your way to mastering the advanced Options strategies.

What you will master
  • Advantages and disadvantages of single Option strategies - Long and Short
  • How Spreads tackle the negatives of individual Options
  • With Spreads, you can now be a seller of Options
  • The meaning of "defined risk" Options investing
  • Spreads help you control your costs and risk exposure
  • What are the differences between credit and debit spreads
  • Control risk and costs without compromising on Probability

SECTION - II REAL LIVE TRADES ON THE 4 OPTION SPREADS

THE BULL CALL SPREAD

The Bull Call Spread is an extension of the Long Call Option. When you buy a Call Option, you are bullish. The Bull Call spread maintains the bullish element of the Long Call while controlling your costs and has a limited losses profile. Of course, everything is a compromise. But you would probably be willing to make this compromise. We explain why this spread is called a Bull Call spread, and how to address any confusion from these strange names. The risk-reward profile of a Bull Call spread is very favorable. We define why the Bull Call spread is a Debit spread, and study its Profit and Loss diagrams in detail. We put a real trade on IBM and we navigate the trade for a couple of weeks.

What you will master
  • Differences between Debit spreads and Credit spreads
  • How does the Bull Call reduce your costs
  • What do we give up when we put on a Bull Call spread
  • What are the criteria for a good Bull Call spread
  • Put a real Bull Call spread on IBM and understand the position
  • Analyze, simulate the trade through various stages of the trade
  • Put the trade in context with the overall market condition
  • Analyze exit points carefully and execute the exit

THE BEAR CALL SPREAD

The Bear Call Spread is a credit spread, and we explain why credit spreads are a viable way to assuming an Option seller's profile. The Bear Call spread limits your risk. We study the role of Probability in selecting credit spreads as well as Implied volatility considerations and time decay. Time decay is a key component of credit spreads and the Bear Call spread can be an excellent way to generate monthly income. All spreads can be part of the busy professional's playbook, but credit spreads can be especially attractive. We analyze the right criteria for credit spreads, including the selection of the expiry series as well as the individual Options itself. We put a real trade on Amazon (AMZN) and track, monitor and adjust this trade until its exit.

What you will master
  • Differences between Debit spreads and Credit spreads
  • How does the Bear Call spread control your risks
  • What do we give up when we put on a Bear Call spread
  • What are the criteria for a good Bear Call spread
  • Analyze chart and resistance levels for a good Bear Call
  • How do we put Probability on our side
  • The balance between premium collected and time to expiry
  • Put a real Bear Call spread on AMZN and understand the position
  • Analyze, simulate the trade through various stages of the trade
  • Put the trade in context with the overall market condition
  • Analyze exit points carefully and execute the exit

THE BEAR PUT SPREAD

The Bear Put spread can be a powerful strategy for bear markets. The Bear Put is an extension of the Long Put Option. The Bear Put has some specific features, which make it a very attractive spread, and we dig deep into these characteristics. We put a real trade on Netflix (NFLX). The risk reward characteristics of Bear Put spreads are very attractive as its losses are limited. The Bear Put, just like the Long Put is a Vega positive trade, so this trade can optimize a bearish move as well as any upside from Implied volatility changes. The choice of expiry series, time decay effects and the choices of individual Options are also important.

What you will master
  • Why the Bear Put spread is a debit spread
  • How the Bear Put spread optimizes a bearish move in a stock
  • Get benefits from Delta and Vega - double deal
  • Why this is a Limited Losses spread
  • How time decay affects the Bear Put spread
  • Study of Profit and Loss diagrams
  • Plan the trade entry for a Bear Put spread
  • Chart and Stock analysis
  • Plan and execute the exit on the NFLX trade

THE BULL PUT SPREAD

The Bull Put spread is a flat to bullish that profits primarily from time decay, but can also profit quicker from a move to the upside. Its important to pick the right strike prices for the Bull Put spread, as is a thorough analysis of the stock's chart and support levels. In this course, this is what we do - we pick Google (GOOG) as our candidate for the Bull Put, and analyze past price action, support levels and put on a successful Bull Put spread.

What you will master
  • The anatomy of a good Bull Put spread
  • Analysis of stock chart and support levels
  • What is special about the Bull Put spread
  • How does the Bull Put spread control your risks
  • How do we put Probability on our side
  • The balance between premium collected and time to expiry
  • Put a real Bull Put spread on GOOG and understand the position
  • Analyze, simulate the trade through various stages of the trade
  • Put the trade in context with the overall market condition
  • Analyze exit points carefully and execute the exit

MONTHLY INCOME STRATEGIES PRIMER
This is a BUSY PROFESSIONALS SERIES. If you have a regular job, then you need strategies that allow you to focus on your job, but yet create a somewhat stable and reliable income stream from your investments. The Covered Call, which we covered in COURSE I, is an excellent example of such a strategy. In this PRIMER, we dig deep into credit spreads and understand why being an Option seller (risk defined of course - no naked selling) may not be that bad after all.


This is Course IV 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.

Who is the target audience?
  • You already understand Single Options - Calls and Puts as well core concepts like Time decay, Implied Volatility, the Option Greeks and some amount of Probability as it applies to Options trading.
Students Who Viewed This Course Also Viewed
Curriculum For This Course
Expand All 16 Lectures Collapse All 16 Lectures 03:09:50
+
Introduction to Options Spreads
5 Lectures 58:20
We discuss the advantages and disadvantages of Option spreads, and why Option spreads can provide vital control with costs and risks. Option spreads are a step up from Single Options and mastering spreads is key to enhancing your learning on Options.
Preview 16:21

The Bull call spread is also called a Debit spread and this spread is a direct extension of the Long Call single Option. How does the Bull Call spread tackle the negatives of a Long Call position. And what are the compromises.
Philosophy of a Bull Call Spread
15:37

The Bear Call is an extension of the Short call single option. Once you put a Bear call spread, the unlimited risk profile of a Short call disappears. 
Philosophy of a Bear Call spread
09:06

The Bear Put is the extension of the Long Put single Option trade. It's a bearish debit spread and generally has very good reward to risk ratio.
Philosophy of Bear Put Spread
09:09

The Bull Put is a mildly bullish strategy and optimizes a flat that is trading flat. Just like the Bear call spread, the Bull Put is also a credit spread.
Philosophy of a Bull Put Spread
08:07
+
All four Option Spread Trades (with detailed explanation and trade entry parameters)
11 Lectures 02:11:30
Live Bull Call spread on IBM. The outlook for IBM was determined by Chart analysis and suitable strike prices and expiry series chosen for the trade. 
IBM Bull Call Trade - Part I - Detailed explanation of Bull Call Spread
22:23

Management of the IBM Bull call trade to its exit.
IBM Bull Call Trade - Trade Rationale, and Exit
11:23

Heavy technical analysis on the AMZN Bear call trade results in entering the trade above the resistance point for AMZN. 
AMZN Bear Call Trade - Trade Rationale, and detailed explanation of the Spread
15:00

The trade goes on a choppy ride but stays within the parameters, and is exited successfully.
AMZN Bear Call Trade - Part II - Trade Management
10:34

Trade entry considerations for the NFLX Bear Put trade. 
NFLX Bear Put Trade - Part I - Trade Rationale, Chart analysis and Trade explanantion
12:25

The trade gets into trouble from the time its put on. At one point, we discussed the possibility of closing the trade, but wisely chose not to do so. 
NFLX Bear Put Trade - Part II - Adjustment and Trade management
08:13

The Bear Put trade is optimized when NFLX makes a big move down, and we exit the trade profitably in stages.
NFLX Bear Put trade - Part III - Adjustment and Exit
16:23

The GOOG Bull Put trade is a play on Probability as well as the fact that GOOG has bounced off its support zone.
GOOG Bull Put Trade - Part I - Trade setup and Entry
11:27

The GOOG trade is very choppy. But it never hits our adjustment point. This is a lesson that you have to give a trade enough wiggle room.
GOOG Bull Put Trade - Part II - Trade management and Exit
06:56

A sneak peek into the next course on Monthly income strategies. We discuss the criteria that make certain trades qualify as a "monthly income strategy".
Monthly Income Strategies
10:22

This concludes the course on Options spreads.
CONCLUSION
06:24

Options Spreads Quiz
10 questions
About the Instructor
4.4 Average rating
2,589 Reviews
26,856 Students
24 Courses
Options Mentor, Financial markets educator, Trader, Investor

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.. Like building a powerful Strategy "for all Option Strategies". 

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. Yes, it does take that long, if not more. If the markets were indeed simple, you'd have everyone involved in it. Patience, Diligence, and Determination are what you need during this time.

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 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, and that's exactly where we come in.

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, a 4-week Live Mentoring program 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. 

The Pluses

1. Options were invented out of thin air. And the people who invented them won Nobel Prizes for their invention (Fisher and Black). It is purely a "Mathematical" concept, with no real connections to the external world except for one, that's defined implicitly in its design.. Its fascinating, mathematical, strategic, risky, but can also provide the basis for life-long income streams. There's focus on Analysis, Data science, Statistical Modeling and Probability theory.

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. In many cases, you don't need to see what's going in the Markets, or the Stocks themselves. This data is embedded in the mathematical formulas that underpin Options structure itself, and you can operate on the basis of your Dashboard.

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 in the formulas and models used by these Nobel winners. And of course, sadly, if it were the case, the Nobel prizes would have to be retracted and we go back to the drawing board again. But today, several well developed markets around the world exist purely based on their Mathematical Modeling of RISK.

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 its 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, proved to be both shocking, and revealing at the same time. While human beings abilities have not increased in exponential terms during the last 20 years, and we may be able to plan 3 or 4 or 5 moves ahead, the computer of today can calculate a 1000 moves ahead, go down every possible path, and record the outcomes like photographic memory.  This is a capability that humans may never achieve, proving that Math plays a key role. So today, every professional Chess player refuses to play the machine, because it's almost guaranteed that the Masters WILL LOSE EVERY GAME

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. Once you understand Options better, you'll realize how true this is. We cannot turn into a Kasparov in a matter of weeks or even a few months. It does NOT work like that. But once you go through this process that can go for 1 to 2 years or more (depending upon your commitment to this process), there is a very powerful light at the end of this tunnel. You build a skill set for life.  Age, Geographical location, Lifestyles, 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. Then you should just STICK TO STOCKS, which are nothing BUT speculation, with a minute role in STRATEGY Give yourself time to master this CRAFT. 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.


MINUSES


Options are easily the most fascinating financial instrument with several upside benefits, but also an equally powerful set of negatives. 

1. Options have a steep learning curve. Don't expect to become Kasparov in a couple of months. Or even a year or two. 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 of experience, in performing their "legal duty" of providing liquidity. While we have hours to plan our attack, the Market Maker literally has a few seconds. In a normal  day, a market maker can do many thousands of trades. One can only be in awe of their skills. 

2. If you're interested in Options, try NOT approach it with a mindset or requirement of making money. This is not only NOT going to happen, but its a recipe for disaster. It's like a student of Medicine wanting to practice their skills after 2 months of study. To develop a meaningful batting average, you will need Time, Patience, and Perseverance. They don't develop overnight. Focus completely on the learning, ideally practicing on paper money accounts because you WILL LOSE at first. 

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 and NOT lose (too much) money

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.

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 income month after month. 

But you have some serious but exciting work to do before you get there, and I'm here to help you in this journey. 

Watch my Free Mini-courses or my YouTube channel , all of which have the highest quality education in Options as well as Financial Markets.. 

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 25,000 students have to say in 2100 Reviews, with almost 2000 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)

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.

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