Getting Started In Options
[Total 41 lessons 17H:01M] In this Course, I will introduce to you all the primary components you need to fully understand in order to completely take advantage of the power inherent in Options. I will start with Option Basics, and from there we will go into detail on understanding Option Greeks, pricing theory and one of the most critical elements in Option trading; –Volatility. We will review what it is, how it can affect option pricing and how best can you exploit Volatility to your advantage.
2010 Option History
I briefly discuss the history of Options and how they were intended to be utilized
2020 Option Lingo
In this session I review common Option terminology that you must understand when you are trading using these intruments.
2030 Option Pricing
A high level discussion of Option Pricing; what you need to know and why
2040 Option Types
I review the different types of Options and the position you can take, from bullish to bearish.
2050 Option Greeks
Option Greeks are the key to unlocking long term success when trading Options. Here I introduce each of the key Greeks that you must fully understand when trading Options
2060 Common Option Strategies
There are over 100s of different variations when it comes to Option Strategies. In this session I review those most important and common Option Strategies that should be in your toolkit when you trade this instrument.
2070 Option P&L Graph
Unlike stock, when are trading Options, especially when you have on a trade with multiple legs you will need to monitor your Profit and Loss in your position. In this session I introduce the Option P&L Graph using Thinkorswim as the primary analysis tool.
2080 Comparing P&L Graph in TOS vs ONE
In this session I will compare and contract using the Analyze Tab to determine your P&L vs using a 3rd party application Option Net Explore.
2090 Option Basics – Option History & Terminology
Here are some common terms and lingo you will need to understand as you venture into trading Options in the financial markets
2100 Option Basics Call & Put Option Rights & Obligations
Depending upon whether you are the owner, or the sell of an Option Contract(s) you will have either Rights (as the owner) or obligations (as the seller) of the Option
2110 Option Basics Option P&L Diagram
Here we spend time introducing the best way to track your Option profits and losses as your trade progresses. The P&L Diagram will soon become second nature to you as you learn that different Option Strategies all have a different shape and configuration on the Diagram
2120 Option Basics – Option Pricing Theory
Trading stock is relatively easy to ascertain how you make money and how to track your profits and losses. However, with Options it is not so easy. Here I introduce the basics of Option Pricing Theory and how it impacts you as a trader
2130 Option Greeks Part I – Delta & Gamma
I will review the component elements that are critical to factors that go into the Option Pricing Model. First up will be a discussion on Deltas and Gammas
2140 Option Greeks Part I – Option Deltas
Option Deltas are one of the most widely followed Greeks and in this session I will review for you how Deltas affect the price of an option and ways in which deltas can be used to help you with your Strike selection
2150 Option Greeks Part I – Time Effect on Deltas
I review here how time remaining to Expiry affects the Deltas of your Option Contracts
2160 Option Greeks Part I – Volatility Effect on Deltas
I review here how the effect of Volatility changes affects your Option Deltas
2170 Option Greeks Part I – Option Gamma
Gamma affects Deltas which in turn affect the price of your Option price. So Gamma is considered a second derivative Greek. Here I review for you how Gamma works and how you can use it in your trading and review of overall Greeks
2180 Option Greeks Part II — Theta
We review what is Theta and how it can affect your option position
2190 Option Greeks Part II — Option Vega
This session covers Volatility and how it affects your overall option position
2200 Option Greeks - Vertical Skews
In this session I review how Volatility works on the vertical axis or, said another way, within one Expiration period. We will look at the effects of Volatility moving higher and how it affects your Vega across various Option Strikes.
2210 Option Greeks - Horizontal Skews
In this session I review how Volatility works on the Horizontal Axis, or said another way, across multiple Expiration periods. We will look at the effects of Volatility moving higher and how it affects your Vega across various Option Strikes over time.
2220 Option Greeks Part II — Option Rho
This little known Greek covers interest rates and how it can affect your longer term option plays
2230 Option Greeks Part II — Dividend Effects on Options
How can dividends affect your option position
2240 Option Greeks Part II — Greek Effects on the Underlying
We cover how each Greek component affects your underlying asset
2250 Option Greeks Part II — Pinning Strikes at Expiry
Many of you may have heard someone use the lingo, "Pinning at the Strike"...here we discuss what it means and is it something useful for you as a trader
2260 Option Synthetics
I introduce the concept of using Option Synthetics to your trading tool kit. In this session I over the most common Synthetic positions and how best to use them.
2270 Trading the 3 Legged Box
In this session we will use synthetics to simulate both a long and
a short stock position and then trade Options around that position.
2280 Trade Option Combos
Here I will explain what a combo really is and how you can use it to trade
Equities or Futures while also controling some directional risk
2290 What Is Volatility
I discuss what is the common symbol used to track and possibly trade Volatility as well as what it is based upon
2300 Historical Volatility
I discuss and review what is meant by Historical Volatility and how it can be used to help in your trading
2310 Implied Volatility
I discuss and review what is meant by Implied Volatility and how it can be used to help in your trading
2320 Vega Option Volatility Greek
I discuss and review how Vega measures and tracks the volatility of the underlying you are trading
2330 Volatility Skews
I discuss and review what is meant by Volatility Skew and ways in which you can measure it
2340 Option Strategies vs Volatility
I show which Option Strategies works best when Volatility is low and moving higher and when Volatility is higher and moving lower.
2350 What is the VXX
In this session I show trading statistics giving you over a 90% success rate as we take advantage of the way in which VXX is structured. We are taking the trade less common but it gives us a market edge compared to what most traders are doing
2360 Best way to Trade VXX
I review the steps getting into the market conditions and indicators used to get into the VXX trade. Also discussed is ways in which you can let into the trade and ways you can actually leg out of the trade as well
2370 Taking Profits / Losses in VXX Trade
I review the ways in which you can leg out of the trade if you desire as well as the best ways to take profits
2380 More on Trading VXX
We conclude our series on trading the High Probability VXX trades
2385 Thoughts on Volatility
In this session I discuss various topics as it relates to Volatility. I cover some of the dangers and pitfalls in trading Volatility as well as how you must have a full understanding of Volatility in order to be a successful Options Trader.
2390 Trading the SPYs and Other ETFs
Now we apply a similar Allocation Model yet a different strategy for trading High Probability SPYs and other ETFs