The Smart Option Trader

Learn To Make Profits Trading Options. Step By Step Examples Of Basic And Advanced Trades.
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366 students enrolled
Instructed by Tod Pellaton Business / Finance
$45
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  • Lectures 74
  • Contents Video: 11 hours
    Other: 2 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 10/2013 English

Course Description

In this course we will help you learn about trading options and how to quickly and effectively evaluate many different types of option positions. You will see how easy options are to trade profitably once you understand some basic concepts and apply a simple step by step process to analyze your trades. In the many videos, you will also see many different option strategies and together we will step through and analyze each of these trades. In addition to the unique information you will be learning here, you will also gain enough knowledge to create and evaluate your own option strategies that will fit your personal trading style. Once you master these easy skills, you will be able to traverse the option trading universe and will never be fooled again. You will also be able to quickly build a potential trade and decide if a trade is to risky for you or if a trade may have an acceptable return. To sample some of the content in this course, the course introduction text and several review chapters have been made available to view for free.

What are the requirements?

  • Broadband internet connection to view streaming videos.
  • An options broker is recommended in the course.

What am I going to get from this course?

  • By the end of this course you will be competent to analyze any simple or complex option position so you can make informed decisions.
  • You will learn many tips and tricks to help you reduce your trading costs.
  • You will learn option trading basics as well as many advanced topics and see them applied in many hours of video examples.
  • You will learn how to access the risks and rewards of any type of option trade.
  • Learn how options are priced in the markets and how to quickly forward test how different market scenarios will affect your positions.
  • You will learn a simple step by step process for option trade analysis.
  • You will see many hours of of video showing examples for most common option positions as well as customized positions.

What is the target audience?

  • Anybody who wants to learn how to trade options profitably.
  • Intermediate option traders who want to refresh the basics and move up to more advanced topics.
  • Advanced option traders who want to refresh the basics and see advanced methods for option trade analysis from a veteran trader.

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Introduction
Preview
Article
Section 1: Why Trade Options
Why Trade Options
Article
05:02

In this video we will go over some most common reasons people use options in their trading. Keep the following objectives in mind as we progress through this course and try to recognize how it can help you. No matter what your objectives are there are options for you.

Section 2: Trading Concepts
Trading Psychology
Article
Trade Management
Article
Capital Management
Article
Technical Analysis
Article
12:26

This video takes a quick look at the basic charting functions in the Think or Swim (TOS) software. The charting functions in TOS are as good as I have seen anywhere and contain many standard features. The charts also have a section where you can program in your own indicators, functions and even trading systems.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 3: Brokers
Option Brokers
Article
Account Types
Article
22:05

In this video we open up the Think or Swim (TOS ) software and take a quick tour.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 4: Option Contracts
What Is An Option Contract
Article
Put And Call Basics
Article
Section 5: What To Trade
Stocks And ETFs
Article
Option Indexes
Article
16:14

In this video we will discuss how to narrow down the universe of assets that are good candidates for option trading.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

17:04

We will look at some of the special broad market indexes available and how they differ from stocks for option trading.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 6: Volatility
Volatility Basics
Article
Volatility Indexes
Article
14:11

In this video we will introduce some of the ways that probabilities are presented in the TOS software.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

08:28

Here we will explore the relationship between the VIX and SPX tickers (S&P 500 volatility vs S&P 500 index) .

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

04:52

In this video we will look at examples of how the VIX influences option prices.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

06:13

Here we will show how to install volatility graphing in the charts for any ticker.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 7: Option Pricing
Option Pricing Elements
Article
Monyness
Article
The Greeks
Article
11:38

Option tables or option chains contain all the options available for a given underlying instrument or asset. They are sorted by expiration month and by strike price. The strike pricing is the different price points for an asset where a standard option is available. The prices for these options are displayed as a bid price and an ask price. The bid price is typically the price at which you would sell the option and the ask price is typically the price at which you would buy an option. The difference between the bid and ask prices are called the bid/ask spread. In addition to the bid ask prices the tables may be configured to contain other information that is pertinent to the option such as the volume, open interest, the Greeks, Implied volatility and other information. This is the first of 4 videos on using option tables in TOS. We will see that these option tables are very versatile and full of valuable pricing information. In this first video we will be introduced to the tables and see the how the concept of monyness is viewed. This all sounds very confusing so let’s just take a look at the option tables on the TOS software in some video’s now. We will see that these tables are well organized and easy to read and easy to decipher these pricing components or labels.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

14:00

We will see how to adjust the tables to give us volume and open interest information.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

10:05

We adjust the option tables to show the Greeks and discuss each of them.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

09:36

We will have the tables show us some Theo pricing adjustments and how changing elements of the greeks can be influence an options price. Don’t miss this video!

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

19:26

In This video, we will look at a process to look at a chart, select a single option to buy (put) and analyse the position. We will see how the option compares to stock ownership or shorting the stock in this case. We will also discuss the risk / reward ratio associated with this trade and the leverage.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 8: Buy A Call
07:02

Now that we have all the basic theory completed the rest of the course will be all videos. In this video we will introduce buying a call and some basic features of the analyze tab in the TOS software.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

10:40

In This video we will show how to select an option from the tables for use in the analyze tab.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

13:18

In this video we will start to analyze a call option.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

10:06

More buy a call option analysis in the TOS analyze tab.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

09:02

Here we will show the confirm purchase window and other features.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

14:15

In This video we will discuss how an option has much more leverage than a stock purchase. We will also see how the leverage can be adjusted.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

13:19

We will look at call options that expire in more than a year.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

09:01

In this video we introduce the think back tab where we can back test some option plays using different market scenarios and market pricing from the past.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 9: Buy A Put
09:45

Select puts to buy and analyze.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

10:12

In this video we will analyze long puts using the TOS analyze tab.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

11:33

More examples of leverage in action when buying a put.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 10: Getting Naked
14:13

In this video we will analyze a short put and introduce the concept of margin.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

09:14

Here we will analyze a short call.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

07:46

Naked options are risky. In This video we do more analysis of naked options to help quantify the risks and rewards.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

09:01

In this video we will introduce a synthetic stock position, discover how much margin is needed and discuss it's potential uses.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 11: Straddles And Strangles
12:13

In this video we will analyze a straddle which consists of both a long put and a long call.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

04:17

We will look the differences between a long straddle and a long strangle.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

08:39

In this video we will sell a call and sell a out at the same time.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

08:32

We will look the differences between a short straddle and a short strangle and look at the margins needed.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 12: Options And Stocks
04:29

In this video we will see how to hedge an asset with puts.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

06:26

In this video we will see how to generate some income selling calls covered with underlying assets.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

11:22

In this video we will show a collar strategy that sells calls and buys puts with an underlying asset to cover.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

10:23

In this video we will take a breather and look back at the many things we have learned so far.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 13: Vertical Spreads
12:20

In this video we take a look at our first spreads and how they can simplify much more complex positions.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

13:39

In this video we will look at more debit spread concepts.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

13:18

In this video we will look at differences and similarities of put and call debit spreads.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

11:08

In this video we will analyze our first credit spread.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

11:07

More credit spread analysis this time with calls.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

13:27

In this video we will see how to build a ratio back spread and how this concept starts making option trading really creative.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

14:27

We will analyze a front spread and its margin requirements.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

16:57

Spreads are so important in option trading that we do a review and discuss them more.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 14: Time Spreads
15:41

In this video we introduce and analyze a calendar spread.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

12:27

In this video we introduce and analyze a diagonal spread and see how it differs from a calendar spread.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 15: Complex Option Postions
12:21

In this video we find out what a butterfly is and analyze it.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

14:04

In this video different types of butterflies are analyzed.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

13:56

In this video we analyze the mighty iron condor and discuss its use as a popular income trade.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

13:15

More information is presented on the iron condor in this video.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

Section 16: Trade Execution
13:03

In this video we look at commissions and slippage and how it affects profitability.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

13:55

In this video we will see some trade-offs with commissions and slippage.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

12:29

In this video we discuss methods of getting a good entry price for complex trades and discuss whether it is good to leg in or not.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

07:28

We discuss some different scenarios to decide whether to adjust, hedge or exit.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

19:57

In this video we look at examples of different complex trade exits and the importance of a good exit on profitability.

Note: This video is best viewed with the 720p setting (HD button on video control bar) and full screen mode for maximum resolution.

08:20

In this video we acknowledge the importance trade execution has on our consistency and profitability then review different trading scenarios.

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Instructor Biography

Tod Pellaton, Option Trader

Tod is a mechanical engineer and has worked in the corporate world, owned a manufacturing business and has also founded other businesses. He has been an active retail option trader for over 15 years. He says, "I always believed there should be an easier path to learning how to trade options." After many years of learning how to trade in traditional ways, he has developed an online course to help option traders quickly learn what is necessary to price and trade options. "We need to use tools that are available to us for learning, pricing and trading options so we can advance to the next level of understanding and not have to get bogged down in all the complex pricing details", he says. Tod believes his engineering background has helped him to simplify many of the trading concepts he teaches and hopes to help many more traders become more confident and profitable on their trading education journey.

Tod founded Real-World Options in 2012 to help promote his vision of simplifying learning of how to price and trade options for retail traders.

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