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Options Foundations Course

The Options Foundations Course is intended to provide you with a better insight into the behavior of option contracts.  Many retail traders begin trading options without first learning the fundamental concepts behind option valuations and the factors that impact their pricing.  This leads to baffling and unexpected trading results.

Each module of this course delves a bit deeper into the seemingly mysterious behavior of options.  The material is presented in a non-technical fashion to make it as accessible as possible.  Yet, the complexity of the curriculum will leave you with a solid foundational understanding of what options are and how they behave under changing market conditions.

  • 01 - Introduction To Options
    The first module in our Options Foundations course. Discover the basics of what an option is and how it operates. From here you will begin discovery very advanced concepts, but it all begins with a first step,
  • 02 - Introduction to Option Pricing & Risk Graphs
    Module 2 of the Foundations Course introduces the subject of options pricing and the concept of the risk graph. Options prices are determined by the market forces of supply and demand, but there are many factors that determine the value of an option. Option pricing formulas quantify those factors and project the theoretical price of an option. Software has been developed to assist traders in evaluating a potential option position. This module serves as an introduction to the basic concepts that will be more fully explored in subsequent sessions.
  • 03 - Understanding Option Pricing Formulas
    Option pricing formulas are the engine behind most option analytic platforms. Traders rely upon these programs to estimate the probability of success in their trades, the risk their positions entail, and the potential for profitability. What many traders do not realize is that the mathematical formulas used to build the analytics are inherently flawed. In this module we examine what the option pricing formulas are attempting to accomplish and explore their limitations so that we have a better foundational understanding of how and when we can rely upon them, and when we cannot.
  • 04 - Volatility
    Volatility is immensely important to an option trader. Failing to consider the potential effects of volatility upon an option trade can leave a trader vulnerable to significant and unexpected losses. Developing a sound understanding of volatility can provide you with an additional edge in the market. This module explores the concept of volatility and how it impacts the value of your option trades.
  • 05 - Introduction to the Greeks, Part 1
    This is the first of a two-part exploration of the options Greeks. During this first part you will discover how delta can be used to anticipate changes in the value of your option positions, estimate probabilities as to whether options will be in-the-money or out-of-the-money by expiration, and hedge your position or even your entire portfolio. Additionally, you will discover how to interpret Gamma for purposes of identifying otherwise unseen risks related to market movement and even how you might use Gamma when constructing your positions.
  • 06 - Introduction to the Greeks, Part 2
    This is the second of a two-part exploration of the options Greeks. During this first part you will discover how delta can be used to anticipate changes in the value of your option positions, estimate probabilities as to whether options will be in-the-money or out-of-the-money by expiration, and hedge your position or even your entire portfolio. Additionally, you will discover how to interpret Gamma for purposes of identifying otherwise unseen risks related to market movement and even how you might use Gamma when constructing your positions.
  • Bonus Material
    We have taken some of the more frequently asked questions and developed short e-leraning courses around them to help you transition from options theory to a practical implementation of options within your portfolio.

 

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