A Beginner’s Guide to Options Trading
This course teaches you the basic, practical understanding of options. You will learn how the basic fundamentals of options function in a practical setting in order to understand the dynamic nature of options. This basic course intersects theory with a practical application to help you retain what you learned. This course goes over the basic definitions of options. I discuss the basic premise of an option and why individuals may want to use it instead of buying or selling the underling instrument out right. I discuss the reasons why an individual may want to use a call or a put options. I discuss the four main strategies of call options and put options. I discuss the inherent risks in each of these strategies. I discuss in detail the options greeks: delta, gamma, theta, vega. I show you how these greeks interact with each other and which ones may have more of an impact depending on strategy. I discuss the relationship of intrinsic and extrinsic value. I discuss the importance of the strike price selection. Throughout these series of lectures each topic is discussed on a theoretical level then a practical live application is shown to help students understand the dynamic nature of options.
What you’ll learn
- You will learn the difference between call options and put options.
- You will understand the options greeks..
- You will understand option liquidity.
- You will understand the the relationship between intrinsic and extrinsic value.
- You will know what a strike price is and how it is used.
Course Content
- Introduction –> 5 lectures • 37min.
Requirements
This course teaches you the basic, practical understanding of options. You will learn how the basic fundamentals of options function in a practical setting in order to understand the dynamic nature of options. This basic course intersects theory with a practical application to help you retain what you learned. This course goes over the basic definitions of options. I discuss the basic premise of an option and why individuals may want to use it instead of buying or selling the underling instrument out right. I discuss the reasons why an individual may want to use a call or a put options. I discuss the four main strategies of call options and put options. I discuss the inherent risks in each of these strategies. I discuss in detail the options greeks: delta, gamma, theta, vega. I show you how these greeks interact with each other and which ones may have more of an impact depending on strategy. I discuss the relationship of intrinsic and extrinsic value. I discuss the importance of the strike price selection. Throughout these series of lectures each topic is discussed on a theoretical level then a practical live application is shown to help students understand the dynamic nature of options.