Options Trading Basics

Understand Contracts. Learn the Greeks. Manage Risk.

This course will teach you the basics of options trading. Learn why people trade them, the rules, components, and how to get started.

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What You’ll Learn About Options Trading Basics

Requirements

  • Get access by registering for free
  • A desire to become an options trader
  • Understand that options trading is hard
  • Passionate about learning options
  • Committed to completing this course

Description

This course is designed to teach you the options basics. In this course, you’ll learn what options trading is, options trading requirements, calls, and puts, strike prices, intrinsic and extrinsic value, implied volatility, margin vs cash accounts, and how to trade basic options strategies. You’ll also learn about the benefits of trading large-cap stocks without large capital requirements and how to capitalize in bullish, bearish, and sideways markets.

What else?

  • Access to this course without expiration
  • This course will be updated with new content
  • Gain access to our member trading courses
Rated Best Value Trading Courses by Investopedia

Options Trading Basics Content

14 lectures • 2 hr 2 min total length

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Courses Included

Swing Trading Basics

Swing Trading Basics

Learn how swing traders use trends, price action, chart patterns, indicators, and trade planning.
Stock Market Basics

Stock Market Basics

Learn how the stock market works, read basic charts, understand order types, and manage risk.
Futures Trading Basics

Futures Trading Basics

Learn how futures contracts, symbols, ticks, trading hours, margin, leverage, and risk management work.
Day Trading Basics

Day Trading Basics

Learn how day traders use price action, chart patterns, scanners, indicators, and risk management.

Frequently Asked Questions

  1. Learn the options basics
  2. Take a course on how to trade options
  3. Read books on options
  4. Discipline yourself to learn
  5. Open a brokerage account
  6. Determine which options to buy or sell
  7. Pick a trading strategy
  8. Choose your strike price
  9. Practice in an options trading simulator
  10. Track your results in a journal
  • Options give the buyer the right but not the obligation to buy or sell
  • Options Contracts. The equivalent of 100 shares
  • Expiration. All options contracts have an expiration date
  • Calls. Basic bullish strategy
  • Puts. Basic bearish strategy
  • Open interest. The number of open contracts
  • Strikes: ATM, ITM, and OTM strikes to purchase
  • Intrinsic Value. The in-the-money portion of an options contract
  • Extrinsic Value. The out-of-the-money portion of the options contract
  • Greeks. Significant components that makeup contracts

There are several types of options strategies but the 4 most common are buying calls, selling calls, buying puts, and selling puts. Vertical spreads make up the umbrella of credit and debit spreads. Debit spreads are a buying strategy that involves buying and selling a combination of a call and put. Credit spreads are a selling strategy that involves selling and buying a combination of a call and put.

Options are a good trading strategy for beginners. They allow you to trade large companies without having to invest a lot of capital. You can trade bullish, bearish, or range-bound markets without the restrictions of needing a specialty shorting broker. This is a popular strategy for growing a small account.

Instructor

Bullish Bears
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