Options 101 Topic List

tom

tom

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These are possible topics to cover in the group. I highly encourage participation.

In no particular order:

  • Building a diversified options portfolio
  • Scaleable, methodical, repeatable Income options trades
  • Managing risk
  • Hedging trades
  • Compare and contrast the advantages and disadvantages of options on equity futures with options on equities (companies or indices)
  • Risk Reversals
  • The Box Trade
  • Many technical analysis topics
  • The Reverse Harvey
  • Taking a directional opinion with options
  • Rolling Thunder
  • Razzle Dazzle trade
  • Ratio spreads
  • Butterfly basics
  • Vertical spreads
I'll keep adding to this list. Feel free to give me more suggestions!
 
That just just off the top of my head. I'm sure I'll add more topics :)
 
Hey Tom, one very valuable topic that is often missing in discussions on option plays is how to adjust a threatened or losing position. Looking forward to the first meeting.
 
Tim Pierson retired from running the Beginner and Small Account Trading Group. This group replaces it. I'll be running it twice per month and cover topics about options trading from the basics of what calls and puts are to more advanced topics.
 
Cool! :)
You may consider announcing topics ahead of the meetings. I rather skip explanations what calls or puts are but be interested in smth like Razzle Dazzle or ratio/ time spreads or BF dissections. Want to compare notes.
 
There are no "cheap or expensive " options....you will always have Mr.Market telling you the value......
 
When you trade options ,you are trading "the market Premium(alias IMPLIED VOLATILITY).
or put it this way: The bid is "cheap" and the ASK is "EXPENSIVE!
 
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Options are expression of the probability ..so you make your bet and manage the risk................
 
Tb2018 is right. Price of an option is a price of an option.
One can perceive this price as expensive other as cheap. It is a matter of subjective risk perception.
There is no such a thing as objectively cheap or expensive options.

Imo, edge is in inside/deep knowledge of the market - knowing factors shading an extra light on risk. Or nimble risk management.
Some do see edge in putting big chunk of risk in 'inprobable' areas of relaying on their skills to manage this risk. I do not.
 
TIP:to get an idea of the relation (MARGINS/RETURN/RISK) choose a tenor(let's say 1 week DTE) on any liquid underline and see the premium of selling an ATM straddle ..and you have it, this is the best way to get a good understanding of what options price is all about.........
 

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Marcas said:
Cool! :)
You may consider announcing topics ahead of the meetings. I rather skip explanations what calls or puts are but be interested in smth like Razzle Dazzle or ratio/ time spreads or BF dissections. Want to compare notes.
Click to expand...

Great idea! I just added tomorrow's topic to the Calendar:

TOPIC: The Box Spread, Synthetics and Put/Call Parity
 
Can consider exploring and diving deeper into embedded micro structures within bigger structures? (structure dissection)
 
That's a good idea. Scott Ruble had an interesting discussion about how many embedded 5-wide butterflies are there inside of larger butterflies.
 
Maybe have an option 101 weekly session for beginners and 201 weekly session for intermediate traders ?
 
I'm not sure i have time for that but I'll think about. Does anyone else want to help run this group?? :)
 
I think it's better to stick to one session but maybe have a little bit of beginner and advanced subjects mixed in the same session that way both trader types can learn a little without having to skip one session because of being either bored or not understanding the subject depending on if you are a beginner or advanced trader
 
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