Options Trading
Options are one of the fastest ways to lose money in the market if you don't understand them. This course explains how they work, what moves their price, and how much you can lose on each position.
This course is for you if
- You want to understand options before putting money into them
- You have traded options and don't know why you lost
- You hold shares and want to learn about hedging
What you'll learn
How options work
- Calls and puts
- Strike, premium, expiry and lot size
- In, at and out of the money
- Buying versus selling
The option chain
- Reading an option chain
- Open interest and put-call ratio
- Margin requirements
What moves the price
- Delta and gamma
- Theta and time decay
- Vega and implied volatility
Strategies
- Covered calls and protective puts
- Bull and bear spreads
- Straddles and strangles
- Iron condors
Risk
- Maximum loss on each strategy
- Expiry-day risk
- Position size in F&O
- Costs and taxes in outline
By the end, you'll be able to
- Read an option chain
- Explain what the Greeks are telling you about a position
- Work out the maximum loss before entering a strategy
- Choose a strategy that fits a view and a budget
What you need before joining
You should be able to read a candlestick chart and mark support and resistance. Technical Analysis covers this.
