Introduction to stock, index, and ETF options
Why trade options; core definitions; and the differences between buying or selling shares and buying or selling options.
Course syllabus
Ten modules. One connected framework.
Move from the essential mechanics of options to strategy selection, adjustments, trade preparation, monitoring, and continuous improvement.
Covered calls
Owning shares and selling covered calls; break-even analysis; and profit-and-loss calculations.
Spreads and combinations
Benefits of spreads; vertical, horizontal, diagonal, debit, and credit spreads; plus straddles and strangles.
Adjustments
Ways to respond when a trade changes, including corrective and follow-up strategies.
Selecting an underlying asset
Fundamental analysis, technical analysis, and the CAN SLIM approach.
Cash-flow strategies
Buying and selling time, interpreting delta changes, and working with support, resistance, and trends.
Asset-building and tax-deferral considerations
Educational discussion of registered and non-registered accounts. Individual tax advice should come from a qualified professional.
Preparing to trade
Choosing a broker, opening an account, determining trading capital, understanding margin requirements, and trading online.
Research and order entry
Finding reliable information online, using a monitoring sheet, and placing an order through a broker.
Review and continuous improvement
Monitoring results, documenting decisions, and refining a repeatable trading process.
The syllabus is educational.
Examples and strategies are used to explain concepts. They are not recommendations to buy or sell a specific security or strategy.