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Introduction To Stock Options

Offered By: Skillshare

Tags

Trading Courses Risk Management Courses Financial Instruments Courses

Course Description

Overview

Intimidated by Stock Options? You're not alone. The world of stock options can be confusing. No wonder more than 80% of people never buy or sell stock options in their life.

Have you been wanting to learn more about stock option trading? You are in luck! We have created a course that is perfect for a beginner in the world of stock options. We will break down the concepts in bite sized pieces and in 2 hours, you should be able to understand in detail what call and put options are, and what to consider before buying and selling stock options. With well paced lectures, whiteboard sessions, and live walkthroughs, learning about stock options will be a cakewalk for you.

There are no prerequisites for this course, except knowing what a stock is :) Bonus points if you have traded stocks before. By the end of course, you will know the fundamentals and use cases of stock options like the back of your hand.

The course includes video content worth approximately 2-hours, broken down into 7 modules as outlined below.

Module 1

  • Contract on a Condo: How to benefit from price rise with just a fraction of the cost.

Module 2

  • Introduction to Call Options and Put Options 

  • Option Premium vs Strike Price, Option Premium vs Time 

  • Premium breakdown – Intrinsic and Extrinsic Values 

Module 3

  • Why Should I care About options?

  • What is an Option Chain, What is Exercising Option – Difference Between American and European style

Module 4

  • Whiteboard Session Call Option – stock price simulation to evaluate profits and loss on call option, identifying the breakeven point of call option

  • Walkthrough of Call Option on a simple interface (Robinhood) 

  • Whiteboard Session Put Option – stock price simulation to evaluate profits and loss on put option, identifying the breakeven point of put option 

  • Walkthrough of Put Option on a simple interface (Robinhood) 

  • How can Put Option be Used as insurance

  • Visualization of profit and loss zones on call and put options 

  • Walkthrough of Options on Yahoo Finance 

Module 5

  • The other side of the trade: Writing and Selling Options – what to consider before writing options 

  • Whiteboard Session: stock price simulation to evaluate profits and loss while selling covered calls, identifying breakeven point 

  • Whiteboard Session: stock price simulation to evaluate profits and loss while selling cash secured puts, identifying breakeven point

  • How to buy stocks cheaper by selling cash secured puts 

  • Option Wheeling Strategy

Module 6

  • Meet and Greet the Greeks – Delta, Gamma, Theta 

  • Implied Volatility and the Greek Vega 

Module 7

  • Walkthrough: Buy a call and put option on an advanced interface (ThinkOrSwim) 


Syllabus

  • 01 Introduction
  • 02 Please Read This Before Continuing
  • 03 Call and Put Options
  • 04 Premium vs Strike and Time
  • 05 More About Premium
  • 06 Why Care About Options
  • 07 Option Chain and Exercising Options
  • 08 Whiteboard Session Call Options
  • 09 Call Options on Robinhood
  • 10 Whiteboard Session Put Options
  • 11 Put Options on Robinhood
  • 12 Buying Put Options as Insurance
  • 13 Zones of Profit and Loss
  • 14 Options on Yahoo Finance
  • 15 Selling Options Things to Consider
  • 16 Whiteboard Session Selling a Covered Call
  • 17 Whiteboard Session Selling a Cash Secured Put
  • 18 Selling Puts to Buy Stocks Cheaper
  • 19 Option Wheeling Strategy
  • 20 Greeks Delta, Gamma and Theta
  • 21 Implied Volatility and Vega
  • 22 Options on ThinkOrSwim

Taught by

Sumeet Sinha, MBA

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