-
Introduction
-
Defining Options
-
Options vs. Stocks
- Trading Stocks vs. Trading Options
- Leverage Explained
- Probability Explained
- Probability of Profit (POP) Explained
- Breakeven Price and Time
- Visual Illustration of Breakeven Price and Time
- Scenario No. 1 – Stock Price Goes Down
- Scenario No. 2 – Stock Price Unchanged
- Scenario No. 3 – Stock Price Goes Up
- Why Would Anyone Want to Buy Options?
- Recap: Buying Stocks vs. Buying Options
- Lower Strike Price Adjustment
- Higher Strike Price Adjustment
- Time to Expiration Adjustment
- Why We Never Buy Options
-
Call Options
- Call Options: Buying vs. Selling
- Scenario No. 1 – Stock Price Goes Down
- Scenario No. 2 – Stock Price Unchanged
- Scenario No. 3 – Stock Price Goes Up
- Visual Illustration: Buying Calls vs. Selling Calls
- Most Important Rule in Trading
- Side by Side Comparison: Buying Calls vs. Selling Calls
- Probability of Profit (POP): Buying vs. Selling Calls
- Recap: Buying Calls vs. Selling Calls
-
Put Options
- Recap: Calls and Puts
- Put Options: Buying vs. Selling
- Buying Put Options
- Selling Put Options
- Side by Side Comparison: Buying Puts vs. Selling Puts
- Scenario No. 1 – Stock Price Goes Up
- Scenario No. 2 – Stock Price Unchanged
- Scenario No. 3 – Stock Price Goes Down
- Visual Illustration: Buying Puts vs. Selling Puts
- Probability of Profit (POP) : Buying vs. Selling Puts
- Recap: Most Important Rule in Trading
- Side by Side Comparison: Selling Puts & Selling Calls
Options Trading for Rookies: Understand Options Completely
November 23, 2020
Prev
Option Basics No. 4



