Option Plays for Equity Traders

In Options by Guest Author

About the Course

Learning to trade options can be tricky. On top of all the things you need to know when trading shares and futures, the study of options has pages and pages of terms and enough oddly names strategies to confuse anyone (yes there really is one called a jelly roll).

At Trading Courses, we want to make our material practical. We want to see material that you want to bookmark or take notes down to use in your trading.

These strategies from the MX (Montreal Exchange) take a list of the common option strategies and apply them to trading shares.

Combine this with our suggestions on how to track options strategies and it moves from snoozeworthy theory to something useable. Come on, get stuck in!

How best to do this course

Do not just read one lesson after the next. Reading theory is boring and the worst way to learn. If you do it this way, you’ll only remember bits a pieces and more importantly not see how a strategy plays out in the market.

Instead, look up options prices in a stock in which you are familiar. For each of the strategies, use a notebook to write down the specific strike or strikes you would buy or sell to apply that strategy. If you like try two or three variations per strategy. Also apply more than one strategy at a time.

Then for at least a few weeks, follow along how each of the strategies are going relative to what the market is doing and time decay.

Don’t overload yourself by looking at 30 strategies at any one time as you’ll miss things. Following no more than half a dozen trades at a time is more than enough.

Do this and you’ll learn this stuff back to front.

About the Author

The Montréal Exchange (MX), Canada’s oldest exchange, is a fully electronic exchange dedicated to the development of the Canadian derivative markets. The MX is the sole financial derivatives exchange in Canada.

Workload:

  • 15 lessons, one every 3 days
  • Following strategies: about a month

Taught In:

English

Course Format:

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