Buying Call and Put Options - Options beginner strategies
Buying Call and Put Options - Options beginner strategies
The first Options trades you make must be a Long Call (Bullish) and a Long Put (Bearish) - both are explained in detail
Start Options trading with the basic strategies - Long Call and a Long Put
Learn to manage live trades on Long Calls and Long Puts
Understand entry points, as well as good exit criteria for trades
How to really "milk" your winning trades
Learn sophisticated orders like the "Conditional" orders
How to optimize an Options strategy for a particular outlook
Learn the art of adjustments for Single Options
Description
SECTION I - BUY A CALL OPTION (CHIPOTLE MEXICAN GRILL)
Buying a Call Option is the most basic of all the Option strategies and is the most efficient strategy to optimize a bullish outlook on a stock. In this course, we take the example of Chipotle Mexican Grill (CMG) and show how the trade played out. We analyze the rationale behind entering the trade, the risk/reward profile, chart analysis and point of entry, choice of expiry and "moneyness" of the Option, time decay considerations, margin requirements, profit expectations, exit criteria, Greek analysis, its Profit and Loss profile and various other considerations. We provide a 360-degree analysis before trade entry. This is a real trade and over 15 days, and we navigate the trade to its exit point.
What you will master
When should you consider a Stock for a Long Call position
What are the criteria for good entry
What are the Implied Volatility and time decay considerations
What should we look for in terms of changes in Implied Volatility
How do we analyze the Pilot's "map" - the Profit and Loss graph
Which Option strike price should we choose to optimize our position
Which Option series should we choose when buying call options
When do we exit - what is a good profit point
What external market considerations should we watch for
Understand the ROI (Return on your investment) metrics of a trade
SECTION II - BUYING A PUT OPTION (FXE EURO ETF)
Buying a Put Option serves two purposes - exploit a bearish move in the stock or be the ultimate protector of your stock. In this part of the course, we take the example of the Euro ETF (FXE) and show how the trade played out in about 25 days time. We analyze the rationale behind entering the trade, the risk/reward profile, chart analysis and point of entry, choice of expiry and "moneyness" of the Option, time decay considerations, margin requirements, profit expectations, exit criteria, Greek analysis, its Profit and Loss profile and various other considerations. We provide a 360-degree analysis before trade entry. We show you how to "let your winners run" in a controlled manner.
What you will master
When should you consider a Stock for a Long Put position
What are the criteria for good entry
What are the Implied Volatility and time decay considerations
What we should for in terms of changes in Implied Volatility
How do we analyze the Pilot's "map" - the Profit and Loss graph
Which Option should we choose to optimize our position
When do we exit - what is a good profit point
What external market considerations should we watch for
Understand the ROI (Return on your investment) metrics of a trade
How should we scale out of a hugely profitable position
SECTION III - STRATEGY AND OPTIMIZATION
The Option strategy optimization course brings all the 4 Options strategies together. The 4 strategies are comprised of 2 bullish and 2 bearish strategies, but how and when should we choose a particular strategy over the other. We create a helpful "4 strategies box" to distinguish and connect one strategy to the other. Most importantly, what are all the considerations before we choose a strategy. Our choice of strategy depends not only on what the stock is currently doing, but also on various market externalities as well as a few key Option metrics like Implied Volatility.
What you will master
How to differentiate between the 2 bullish and 2 bearish strategies
If you were bullish, would you choose a Long call or Short Put
If you were bearish, would you choose a Long Put or a Short Call
Why our outlook on the trade is the most important consideration
What are the Implied Volatility and time decay considerations
Which Option should we choose to optimize our outlook
What external market considerations should we watch for
SECTION IV - SINGLE OPTION ADJUSTMENTS
This course studies the need for Option adjustments, and why adjustments are as critical to the success of your position as good entry or analysis. We consider all the four basic strategies - the Long Call, Short Call, Long Put, and the Short Put and look at various adjustments to these positions if they get into trouble. Every investor has a "pain point" - this is the point at which they adjust their position. Applying a rigorous approach to this pain point enables investors to control risk while maximizing the opportunity to profit. The course also discusses various details like early adjustments, over-adjusting and adjusting profitable trades as well as the importance of the investor's outlook for the stock when considering adjustments.
What you will master
What are adjustments and why do we need to adjust positions
Why adjustments are a feature of Options that should be taken advantage of
What are the considerations for making a good adjustment
Are adjustments different for different strategies
Sneak peek into "Option Spreads" - the focus of Module III
How much of an adjustment should we make
What is over-adjustment and why we should try to avoid it
How should we adjust when our outlook for the stock changes
Who this course is for:
Those who have a good theoretical understanding of Call and Put Options
Theoretical knowledge of Time decay, Implied Volatility and the Option Greeks
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