In this course, you'll learn how to unlock the power of options in your investment portfolio.
Whether you want to use options as a supplement to your stock investments, or you want to become an options trader, this course will help you get there faster than anywhere else on the web.
In these video lessons, you'll learn the most important options trading concepts with tons of examples and visualizations. In fact, there are over 200 visualizations you'll see throughout the course that use REAL option data to help you learn the key options trading concepts.
After completing this course, you'll have mastered:
1. Options Trading Basics (e.g. basics of call options and put options, strike prices, expiration dates, volume and open interest, assessing the bid-ask spread, order types, etc.)
2. Implied Volatility Topics (e.g. What is implied volatility?, interpreting and using the VIX Index, understanding the "expected move," trading VIX options, and much more)
3. The Option Greeks (e.g. assessing an option's exposure to stock price changes, the passing of time, changes in implied volatility, and how to use these Greeks on a position level)
4. Options Trading Strategies for Rising, Falling, and Range-Bound Markets
All in all, this course will teach you the absolute essentials related to options trading. Even better, you'll learn faster than you would with any other resource.
Our students have raved about the learning resources we've put together, and we want you to benefit from them as well.
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In this lesson, you'll learn the very basics of call options and put options. You'll see some basic visualizations that demonstrate how call prices and put prices change relative to movements in the stock price.
In this lesson, you'll learn what an option's strike price represents. Additionally, you'll learn some facts about the relationship between an option's strike price and the current stock price.
All options have an expiration date. In this lesson, you'll learn about the most common expiration types, and how to go about selecting an expiration cycle to trade in.
Option prices have two components: intrinsic value and extrinsic value. In this video, you'll learn to determine how much of an option's price is intrinsic and how much is extrinsic, and what that means for the option over time.
When an option buyer exercises their option, someone who is short that option gets assigned. In this video, you'll learn what exercise and assignment means for buyers and sellers of options.
The "hidden" cost of trading options lies in the bid-ask spread, and trading options with wide bid-ask spreads can chew into your returns over time. In this video, you'll learn how to spot good and bad bid-ask spreads, as well as learn what happens to bid-ask spreads during volatile market periods.
Volume and open interest can help you determine if an option contract is active enough to trade safely. In this video, you'll learn which options typically have the most volume/open interest, and which typically have the least.
There are many order types you can use when executing trades. In this lesson, you'll learn which order types to avoid and which to use 99% of the time.
Have you mastered the basics of options?
In this lesson, you'll FINALLY learn what implied volatility represents in a clearly explained manner.
The VIX Index is a widely watched indicator, as it gauges demand for market protection. In this lesson, you'll learn exactly what the VIX Index is, and how it relates to the S&P 500.
With options, you can estimate the probability of a stock's future price movements. In this lesson, you'll learn about the "expected move" and how it can be calculated manually (though it often doesn't need to be).
In this lesson, you'll learn about the most important concepts related to VIX options. After this lecture, you'll be able to navigate VIX options substantially better than most.
The implied volatility of a stock does not tell you the whole story, as that current IV could be high or low relative to that stock's "normal" level of implied volatility. In this lesson, you'll learn about two metrics that help you determine if a stock's IV is relatively high or low.
Have you mastered implied volatility?
Option prices have many exposures, with changes in the stock price being one of them. In this lesson, you'll learn about delta, the option Greek that quantifies an option's risk relative to changes in the underlying stock price.
An option's directional risk exposure is not static. When the stock price changes, so does an option's delta. Gamma is the option Greek that quantifies how much an option's delta is expected to change when the stock price shifts.
At the time of an option's expiration date, its price will only consist of intrinsic value. This means that as time passes, all of an option's extrinsic value will wither away. Theta is the option Greek that quantifies how much an option's price is expected to lose with each passing day.
Implied volatility represents the overall price level of a stock's options. An option's vega represents how much an option's price is expected to change relative to each 1% change in implied volatility.
While an option's delta tells you the expected price change of that option when the stock price moves, position delta tells you how much money you stand to make or lose when the stock price changes.
Delta hedging is the practice of reducing a position's directional risk exposure by adding positions that bring a position's delta exposure closer to zero. In this video, you'll learn about how delta hedging works (the general idea).
The gamma of an option tells you how much the option's delta is expected to change when the stock price moves. However, understanding gamma on a position level is very important, as your position's gamma indicates how long or short (bullish or bearish) your position will become when the stock price changes.
Have you mastered the option Greeks?
I've spent years researching and trading options. In July of 2016, I founded projectoption, an options trading education and research website. The educational content found on projectoption is all highly visual, concise, and easy-to-understand. As of this writing, there are 47 free options trading guides with over 200 concept visualizations to help you learn the most important options concepts in an efficient manner.
I'm confident that I can teach you how to understand and trade options through the content in this course, and on the projectoption website.