Most material on Options use too much jargon and technical definitions to explain what Options are. For example, you’ll hear definitions like “A Call Option break-even price is the Strike price plus the Premium paid”. While this is true, it gives the reader absolutely ZERO insight into what exactly this means. The approach in this Ebook is to explain Options in simple terms using real-life examples that everyone can understand. If you are given a simple example of understanding Call Options by using a real estate transaction, it is so much easier to grasp the concept. Similarly we use a real-world example of buying Car insurance to explain the concept of a Put Option. And finally, these real-world examples are practically demonstrated on the trading platform, and their equivalent concepts are explained using Apple (AAPL) Options in the financial markets. Each concept is explained in detail using videos, and you'll find links to over 20 videos and 2 hours of play time inside.
This Ebook is also particularly useful for Stock traders who have never traded Options before. Three very specific techniques are discussed that will allow every Stock trader to significantly improve the performance of their Stocks. These techniques do not require much experience with Options, but will allow Stock traders to approach their investments in strategic ways that they’d never thought had existed.
Specifically, by the end of this course, you’ll learn -
• What are Options, and what are Call and Put Options.
• What are the fundamental differences between Stocks and Options.
• What are the factors affecting Option prices.
• An excellent real world example of a Call Option and a Put Option.
• What are At-the-money (ATM), Out-of-the-money (OTM) and In-the-money (ITM) Options.
• The asymmetrical risk profiles of Option buyers and sellers
• The rights and obligations of the buyer and seller of Options.
• Break even analysis and Profit and Loss graphs for buyers and sellers.
• How Options are represented in the financial markets.
• Translate real world examples into AAPL Options on a trading platform
Options are a game of strategy, no different from Chess. Master them, and you have a skill for life. The principles of Options are never going to change as the mathematics behind them are never going to change. Since Options were originally invented to hedge risks, provide price protection or insurance coverage for various uncertainties in the future, its basic design has mathematical roots. While these mathematical roots are important to understand, platforms have become sophisticated enough to do all the number crunching, leaving traders to only interpret the numbers they see. As Options traders, we have a set of instruments (called Option Greeks) that we can monitor. And tweak the Options position based on what these instruments are telling us. This is no different from how we drive a car based on various instrumentation, without having to worry about how the car is engineered.
From its humble beginnings in the 1970's, Options have come a long way. Call Options first started trading as a financial instrument on the Chicago Board Options Exchange (CBOE) in 1973, and Put Options started trading in 1977. From just trading in a handful of stocks initially, today Options are traded on over 1000 stocks, ETFs, currencies, commodities, and Volumes have increased to millions of contracts every month. And as trading platforms advance in sophistication, and analysis tools become more accessible to the retail trader, the popularity of Options has seen a big uptick amongst retail traders. What was once the purview of professional traders or institutions is now within reach of the retail trader. This is perhaps the biggest development in the last 10 years in the Options world. Welcome to the most unique and fascinating instrument in the financial markets. Enjoy !!
This Ebook is also particularly useful for Stock traders who have never traded Options before. Three very specific techniques are discussed that will allow every Stock trader to significantly improve the performance of their Stocks. These techniques do not require much experience with Options, but will allow Stock traders to approach their investments in strategic ways that they’d never thought had existed.
Specifically, by the end of this course, you’ll learn -
• What are Options, and what are Call and Put Options.
• What are the fundamental differences between Stocks and Options.
• What are the factors affecting Option prices.
• An excellent real world example of a Call Option and a Put Option.
• What are At-the-money (ATM), Out-of-the-money (OTM) and In-the-money (ITM) Options.
• The asymmetrical risk profiles of Option buyers and sellers
• The rights and obligations of the buyer and seller of Options.
• Break even analysis and Profit and Loss graphs for buyers and sellers.
• How Options are represented in the financial markets.
• Translate real world examples into AAPL Options on a trading platform
Options are a game of strategy, no different from Chess. Master them, and you have a skill for life. The principles of Options are never going to change as the mathematics behind them are never going to change. Since Options were originally invented to hedge risks, provide price protection or insurance coverage for various uncertainties in the future, its basic design has mathematical roots. While these mathematical roots are important to understand, platforms have become sophisticated enough to do all the number crunching, leaving traders to only interpret the numbers they see. As Options traders, we have a set of instruments (called Option Greeks) that we can monitor. And tweak the Options position based on what these instruments are telling us. This is no different from how we drive a car based on various instrumentation, without having to worry about how the car is engineered.
From its humble beginnings in the 1970's, Options have come a long way. Call Options first started trading as a financial instrument on the Chicago Board Options Exchange (CBOE) in 1973, and Put Options started trading in 1977. From just trading in a handful of stocks initially, today Options are traded on over 1000 stocks, ETFs, currencies, commodities, and Volumes have increased to millions of contracts every month. And as trading platforms advance in sophistication, and analysis tools become more accessible to the retail trader, the popularity of Options has seen a big uptick amongst retail traders. What was once the purview of professional traders or institutions is now within reach of the retail trader. This is perhaps the biggest development in the last 10 years in the Options world. Welcome to the most unique and fascinating instrument in the financial markets. Enjoy !!
