The heart of Options trading MODULE IV - OPTIONS INTERMEDIATE LEVEL Single Options are great, but they are insufficient to fully capitalize opportunities. Spreads are the centerpiece of the Options playbook, and sit right in between single Option strategies and advanced strategies. Thats because all advanced strategies are composed of spreads. Spreads involve buying an Option and selling another Option at the same time. In Course I - Philosophy of Spreads, youll learn why spreads form a vital component of risk management as well as efficient capital management. There are two kinds of spreads - vertical spreads and horizontal (or Time) spreads. We cover vertical spreads in detail in this module. There are four types of vertical spreads, and these spreads are extensions of the four single Option strategies covered in the previous module. Course II covers the Bull Call spread, a bullish strategy and we put on a bullish trade on IBM. Course III is the Bear Call spread on Amazon (AMZN), and optimizes a bearish to neutral outlook. Course IV is the Bear Put spread on Netflix (NFLX) and finally, in Course V - Bull Put spread, a neutral to bullish strategy, we put a trade on Google (GOOG). If you master the use of Spreads, you can optimize your outlook for any stock in a capital efficient manner and with controlled risk. Just as in single Options, spreads need adjustments if they are likely to get into trouble (Course VI - Adjustments for Spreads). Finally, in Course VII (Monthly Income Strategies), we look at how busy professionals can learn to structure strategies that require very little adjustment but can create consistent monthly income. And many a time you can make profits even if the stock moves against you. We recommend you master spreads before moving to the advanced modules VI and VII. And of course, its entirely possible to stay at the spread level, and operate efficiently and profitably at this level. These are live trades and youll see how these strategies worked over a period of 2 to 4 weeks. optiontiger/options-intermediate/
Posted on: Thu, 06 Mar 2014 15:16:26 +0000
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