Option Trading Courses

A Call Option is a contract that gives you the right but not the obligation to BUY a stock at an agreed price, by an agreed date in the future. 

Owners of Call options can profit when stock prices rise. 

A Put Option is a contract that gives you the right but not the obligation to SELL a stock at an agreed price, by an agreed date in the future. 

Owners of Put options can profit when stock prices fall.

Option contracts are derivatives of underlying stocks. Usually 1 option contract controls 100 shares of stock. Each option contract contains an expiry date and a strike price and are bought and sold on option exchanges. 

There are several options strategies that allow you to generate a regular income. 

For example, let's imagine you own 100 shares of a stock that is currently trading at $168 and you think the share price won't go above $175 in the next 2 months. You could:

1. Sell a 'covered' call option at the $175 strike for the same expiry. This gives someone else the right to buy your shares at $175 anytime in the next 2 months.
2. You receive a credit premium of $475 per contract for agreeing to sell your shares to that person at $175.

In this example, If the share price:

1. Stays below $175 you keep the stock and the $475 income.
2. Rises above $175 you will sell your shares at $175 and make a profit of $1,175 ($700 + $475). 

A great strategy for stocks that you own that are trending sideways!

Whether you are bullish, bearish or neutral on a stock you can place option trades that give you a High Probability of being profitable. 

For example, let's imagine you are neutral on a stock which is currently trading at $168 and you think the share price won't fall below $155 in the next 2 months. You could:

1. Sell a put option at the $155 strike expiring in 2 months
2. Buy a Put option at the $150 strike for the same expiry
3. You receive a credit premium of $100 per contract. 
4. Your Odds of Profitability are 82%. 

In this example, If you are correct and the stock does not fall below $155 you will make a $100 profit per contract. 

You only risked $400 on the trade yielding a 25% ROI! 

Whether you are bullish or bearish you can place option trades that have lower odds of profit but come with much higher returns. 

For example, let's imagine you are bearish on a stock which is currently trading at $168 and you think the share price could drop to $155 in the next 2 months. You could:

1. Buy a Put option at the $160 strike expiring in 2 months
2. Sell a put option at the $155 strike for the same expiry
3. You pay a debit premium of $100  per contract. 
4. Your Odds of Profitability are 35%. 

In this example, If you are correct and the stock falls to $155 you will make a $400 profit per contract. 

You only risked $100 on the trade yielding a 400% ROI! 

11 option trading courses available online 24/7. You can complete each course at your own pace and time. 

We start with the basics of options. How to use call and put options to profit from rising and falling stock prices. 

Debit Spreads, Credit Spreads and multi-leg option trading strategies. Learn to profit in all market conditions.

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Chat with a community of like minded people and learn from their experience and questions too.  

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