Short, Authoritative, Useful eBooks

Short, Authoritative, Useful eBooks

Learn About Options Trading (Theory) in 40 Minutes

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Words: 10,937

Published: 18 December 2023

$4

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Short Description:

Learn About Options Trading (Theory) in 40 Minutes provides a short but comprehensive, easy-to-digest but rigorous, and practical but systematic primer to options. It’s meant for people who want to quickly learn, or refresh themselves on, how options work.

Options are complicated financial instruments; there is a lot of ground to cover to understand, first, just how options work (Theory 1); second, understand all the strategies possible with options (Theory 2); third, understand and internalise the planning and psychology involved in becoming a successful trader (Practice 1); and fourth, understand and internalise the trading preparation process (Practice 2).

Here is a roadmap of what you will need to understand about options trading at some point or other:

Introduction to Options
  • Call & Put Basics
  • The Advantages and Disadvantages of Options
  • Option Moneyness, Value, and Pricing
  • Six Basic Risk Graphs
  • Expiration, Exercise, and Assignment
  • Time Decay, Volatility, and the Greeks
Assets to Trade
  • Equity, ETF, and Index Options
  • Regular, Weekly, Quarterly, and LEAP Options
  • Exchanges and Trading Hours
  • Portfolio Investing
Strategies, Trade Planning, and Trading Psychology
  • Options Strategies
  • Trade Planning
  • Trading Psychology
Preparation
  • The Thinking Trader Process

This short eBook covers only ‘Introduction to Options’. The second eBook in the series—Learn About Options Trading (Practice) in 50 Minutes—covers the rest: Assets to Trade; Strategies, Trade Planning, and Trading Psychology; and Preparation.

Table of Contents:

Extract:

So you want to be an options trader.

Firstly, you need to know what you need to understand about options trading. Here is a roadmap of what you will need to understand about options trading at some point or other:

Introduction to Options
  • Call & Put Basics
  • The Advantages and Disadvantages of Options
  • Option Moneyness, Value, and Pricing
  • Six Basic Risk Graphs
  • Expiration, Exercise, and Assignment
  • Time Decay, Volatility, and the Greeks
Assets to Trade
  • Equity, ETF, and Index Options
  • Regular, Weekly, Quarterly, and LEAP Options
  • Exchanges and Trading Hours
  • Portfolio Investing
Strategies, Trade Planning, and Trading Psychology
  • Options Strategies
  • Trade Planning
  • Trading Psychology
Preparation
  • The Thinking Trader Process

Secondly, this short eBook does NOT cover all the topics above; it covers only ‘Introduction to Options’.

Options are  complicated financial instruments; there is a lot of ground to cover to understand, first, just how options work (Theory 1); second, understand all the strategies possible with options (Theory 2); third, understand and internalise the planning and psychology involved in becoming a successful  trader (Practice 1); and fourth, understand and internalise the trading preparation process (Practice 2).

About The Author:

Thomas Saw

Thomas Saw is a passionate trader and educator. He has more than 20 years of experience successfully trading and investing in commodities, ETFs, options, forex, futures, and stocks, and has been actively sharing with fellow traders and investors the realities and practicalities of trading-investing as a means to financial freedom.

He is the creator of the FixedCaptialRisk portfolio system. His favourite instrument is options, because of the risk management, leverage and versatility they provide. His holistic approach to trading-investing is to use multiple different financial instruments and methodologies to achieve one’s financial goals within one’s own risk.

Thomas’s passion has led him to be:

  • Founder (2010-current), Traders Round Table, a community of traders and investors;
  • Founder & Owner (2007-2009), The Online Trading Academy, Singapore (World’s largest financial education franchise with 31 schools);
  • President (2005-2007), The Options Traders Club of Singapore (a non-profit trading club).

 

Michael Chua is a student of Thomas and a trainer at TRT Academy.

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