Stock Options Intermediate - I

Stock Options Intermediate - I

Hello Dear Students,

In the first course 'Introduction to Stock Options' we covered the fundamentals of stock options and explored the usage of buying and selling single call and put options.

In this class we will go through the spreads of 'Stock Options' created by a pair of options. Spreads can provide us with better control on the risk-reward balance. We will cover the following in this course:

Vertical Spreads

• · Bull Call Spread

• · Bear Call Spread

• · Bull Put Spread

• · Bear Put Spread

Straddles

• · Long Straddle

• · Short Straddle

Strangles

• · Long Strangle

• · Short Strangle

The course is divided into three modules

Module 1: Introduction

• Introduction 01:07

• Please Read This Before Continuing 00:52

• Scope of This Course 03:36

Module 2: Vertical Spreads

• Vertical Spreads - Bull Call and Bear Call 01:40

• Bull Call Spread - Whiteboard 08:26

• Bear Call Spread - Whiteboard 08:25

• Bull Put Spread - Whiteboard 06:39

• Bear Put Spread - Whiteboard 06:19

• Summary of Vertical Spreads 01:53

Module 3: Straddles and Strangles

• Straddles - Long and Short 02:00

• Straddles - Whiteboard 06:43

• Strangles - Long and Short 01:59

• Strangles - Whiteboard 04:24

• Summary - Straddles and Strangles 01:58

• Demo on ThinkOrSwim 07:38

Instead of an end of course quiz, I suggest doing a 'hands-on' project.

I recommend using a 'paper trading' account (with ThinkOrSwim or any other platform) for the project.

Step 1. Create a Long Strangle on a stock of your choice, with the following parameters

· Stock price >$100 per share

· Strike spread of $10 or more

· Maximum Debit of $2,000 (i.e. $20/share)

· More than 3 months until expiration

Step 2. Find the breakeven points, max profit, and max loss of the long strangle.

Intermediate Level Course in Stock Option Trading

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What you will learn

• In this class we will go through the spreads of 'Stock Options' created by a pair of options.
• Spreads can provide us with better control on the risk-reward balance.
• We will cover the following in this course:

Rating: 0

Level: Intermediate Level

Duration: 1 hour

Instructor: Sumeet Sinha, MBA