Option trading tutorial video

Option Trading Tutorials.

A really great way to learn options trading is through option trading tutorials. I found as I was learning to trade options that watching a trade get set up, entered, managed and reviewed was a great help to my learning to trade.

It has been my experience that it is helpful to watch a trade being placed in the form of a video AND I've also found it helpful to learn about trades being set up and managed by reading about it. That's why I've included both formats here on this page.

I'll occasionally put up a new video tutorial, especially on strategies I haven't shown before. This will offer the opportunity to discuss not only the trade itself as it develops, but also the use of some of the trading tools for trade analysis and trade management. Watch for the individual links to these to show up also in the right column and accessible from every page on the site.

Additionally, I'll be setting trade tutorial pages where I'll choose a strategy and create a trade page. This page will act like a trade journal so I'll have the opportunity to demonstrate this process as well. Each new trade will have a page where the trade is set up and discussed as I prepare to enter. I will add updates to these pages as I monitor the trades and I'll ultimately have a trade conclusion where I assess the result of the trade and any lessons learned. This approach is intended to be a more formal demonstration of the trading plan, trade journal and trade log concepts I've discussed on other pages.

What I'll be doing on this page is collecting all the option trading tutorials I put together. From this page, there will be a link to details of each option trading tutorial . Below is a summary of the trades in terms of the trade type, gain/loss, etc.

These trades will largely be constructed from index options or ETFs of a particular index. There are many reasons for this, some of which are outlined on the index option trading page and some on the ETF options page. The key reasons though for me has to do with volume traded and the fact that no trade is dependent on any one stock and any events that could cause huge swings.

I want to point out that I've placed all these trades in an option paper trading account at thinkorswim. I am NOT making any recommendations on any of these trades. These tutorials are simply offered for educational purposes.

While the point of these trade tutorials isn't necessarily to have each one turn into a winner, it's still nice to be able to track the result over time. While I've summarized the trades above, I want to provide a portfolio summary much like we would if we had a trade log. After all, it isn't really about how many winners or losers there are but what the equity curve looks like. The table below will show the cumulative result of closed trades. Note: This includes open debit orders so the balance may seem off sometimes.

As I continue to put on trades, how do I choose new strategies to trade? One way is through taking more of a portfolio management view. Check out this video to see an example of portfolio management in action.

Options Trading.

Related Topics.

Keeping in Touch.

Newsletter Subscription.

Video Store.

Check out these full length videos that contain lots of specific information about trading spread strategies at an excellent value.

Free video tutorials.

I set up and discuss the trades and then follow them up with periodic reviews until they close. For more detail go to the Options Trading Videos page.

Vertical spread tutorial.

Calendar spread tutorial.

Iron Condor tutorial.

Diagonal Spread Tutorial.

Other videos.

Copyright 2008-2014 success-with-options.

All Rights Reserved.

Information on this site is for educational purposes only.

Options Basics Tutorial.

Nowadays, many investors' portfolios include investments such as mutual funds, stocks and bonds. But the variety of securities you have at your disposal does not end there. Another type of security, known as options, presents a world of opportunity to sophisticated investors who understand both the practical uses and inherent risks associated with this asset class.

The power of options lies in their versatility, and their ability to interact with traditional assets such as individual stocks. They enable you to adapt or adjust your position according to many market situations that may arise. For example, options can be used as an effective hedge against a declining stock market to limit downside losses. Options can be put to use for speculative purposes or to be exceedingly conservative, as you want. Using options is therefore best described as part of a larger strategy of investing.

This functional versatility, however, does not come without its costs. Options are complex securities and can be extremely risky if used improperly. This is why, when trading options with a broker, you'll often come across a disclaimer like the following:

Options involve risks and are not suitable for everyone. Option trading can be speculative in nature and carry substantial risk of loss. Only invest with risk capital.

Options belong to the larger group of securities known as derivatives. This word has come to be associated with excessive risk taking and having the ability crash economies. That perception, however, is broadly overblown. All “derivative” means is that its price is dependent on, or derived from the price of something else. Put this way, wine is a derivative of grapes; ketchup is a derivative of tomatoes. Options are derivatives of financial securities – their value depends on the price of some other asset. That is all derivative means, and there are many different types of securities that fall under the name derivatives, including futures, forwards, swaps (of which there are many types), and mortgage backed securities. In the 2008 crisis, it was mortgage backed securities and a particular type of swap that caused trouble. Options were largely blameless. (See also: 10 Options Strategies To Know .)

Properly knowing how options work, and how to use them appropriately can give you a real advantage in the market. If the speculative nature of options doesn't fit your style, no problem – you can use options without speculating. Even if you decide never to use options, however, it is important to understand how companies that you are investing in use them. Whether it is to hedge the risk of foreign-exchange transactions or to give employees ownership in the form of stock options, most multi-nationals today use options in some form or another.

This tutorial will introduce you to the fundamentals of options. Keep in mind that most options traders have many years of experience, so don't expect to be an expert immediately after reading this tutorial. If you aren't familiar with how the stock market works, you might want to check out the Stock Basics tutorial first.

Stock Options Tutorials.

An Options Tutorial Should be Free: There are many websites promoting an Options Tutorial which costs big bucks. You should be able to find a good Options Tutorial for free. In fact, you have already landed on a FREE Options Tutorial site. All you have to is read what we have for you. It should be a good start.

Stock is to Checkers As Options are to Chess: Investing in stock is a whole lot easier than investing in options. Investing in stocks is simple. Just pick a horse and place your bet. It is a simple game like playing checkers. Investing in options is a whole lot more complicated – it is more like playing chess. Options investing can be a life-long learning experience.

Obviously, learning all you can about options is essential before you ever invest with real money. So, where do you start?

Getting Started with your Free Options Tutorial: We believe that you best bet would be to read every topic listed at Stock Options 101, beginning at the top. Once you have an understanding of the basic definitions and concepts, your next step might be to sign up for our free weekly newsletter.

In addition to a new options idea sent to you each week you will get a free options report that puts many of the basic options concepts to work in the real world.

Terry's Tips Stock Options Trading Blog.

Floor & Decor Holdings (FND) Is Set To Grow.

This week we are featuring another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our portfolios to spot outperforming stocks and place spreads that take advantage of the momentum. The 10 actual option portfolios carried out by Terry's Tips for its paying subscribers have gained an average of 108% for 2017. This is down a little from a few weeks ago because many of the tech stocks that we trade options on have fallen over the past few weeks. We are still pleased with the composite results, however. (One of our newest portfolios adds the Trading Idea of the Week that we send out to you each week to its holdings).

Floor & Decor Holdings (FND) Is Set To Grow.

Investors are optimistic about the outlook for FND after a recent Moody’s upgrade and an upgrade from Zacks Investment Research to a buy rating with a $46.00 price target.

Will Essent Group (ESNT) Continue the Momentum?

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our portfolios to spot outperforming stocks and place spreads that take advantage of the momentum.

Will Essent Group (ESNT) Continue the Momentum?

Essent Group has received a lot of attention as of late and several analysts are expecting more upside in the stock price. Here are two of them – Essent Group Earns Outperform Rating from Analysts at Wells Fargo & Company and Zacks: Analysts Anticipate Essent Group Ltd. Will Announce Earnings of $0.77 Per Share.

ESNT has recently seen a pickup of upside momentum after a . . .

Facebook (FB): Time to Buy The Dip?

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our portfolios to spot outperforming stocks and place spreads that profit if the momentum continues, at least a little.

The last 12 ideas which we have published here which have expired resulted in 11 gains averaging 39% (including the loss which was only 10% on one of the spreads). If you had invested the same amount in each of the 12 ideas, you would have made 468% on that amount. Of course, we can’t promise that future results will be this great.

Facebook (FB): Time to Buy The Dip?

Several analysts are expecting Facebook stock to continue higher, here are two of them – Facebook Inc Stock Can Still Deliver Value, Event at These Levels and Three stocks to buy on recent weakness.

In This Section.

This Week's Events.

Making 36% – A Duffer's Guide to Breaking Par in the Market Every Year in Good Years and Bad.

This book may not improve your golf game, but it might change your financial situation so that you will have more time for the greens and fairways (and sometimes the woods).

Learn why Dr. Allen believes that the 10K Strategy is less risky than owning stocks or mutual funds, and why it is especially appropriate for your IRA.

Sign Up Your 2 Free Reports & Our Newsletter Now!

Tastyworks is a new brokerage firm from the brains behind tastytrade and it is our top choice of options-friendly brokers. Their commission rates are extremely competitive - options trades are only $1 per contract to open and $0 commission to close (all options trades incur a clearing fee of $0.10 per contract). The tastyworks trading platform quickly became our favorite platform for options trading and it keeps getting better with new features released each week. Terry uses tastyworks and loves everything about them!

This Chicago brokerage firm with the unlikely name thinkorswim, Inc. by TD Ameritrade is considered by many to be the best option-friendly broker. For openers, they have extremely good analytic software and their option trading platform is exceptional. Thinkorswim Mobile has been called the best mobile app in the industry. In 2017, TD Ameritrade received 4 stars out of 5 in the annual Barron`s* Best Online Brokers Survey. TD Ameritrade was tops as an online broker for long-term investors and for novices. The company is the only broker that receives the highest 5.0 score for research amenities among all firms participated in the ranking last year.

TD Ameritrade, Inc. and Terry's Tips are separate, unaffiliated companies and are not responsible for each other’s services and products.

tastyworks, Inc. has entered into a Marketing Agreement with Terry’s Tips (“Marketing Agent”) whereby tastyworks pays compensation to Marketing Agent to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastyworks and/or any of its affiliated companies. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastyworks does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website.

tastyworks, Inc. and Terry’s Tips are separate, unaffiliated companies and are not responsible for each other’s services and products. Options are not suitable for all investors as the special risks inherent to options trading my expose investors to potentially rapid and substantial losses. Options trading in a tastyworks account is subject to tastyworks’ review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.

©Copyright 2001–2017 Terry's Tips, Inc. dba Terry's Tips.

Option Trading Tutorial.

My blog was designed as a timeless option trading tutorial. I intend to keep adding option trading articles on a periodic basis. Each one takes four to six hours to compose and even though the examples might be dated, the information will stand the test of time. Within the blog, you can use the search feature to find specific option trading tutorials.

In the Category section you will find a group of articles called, "How To Start Trading Options". These option trading tutorials identify resources and they help you build your knowledge base.

In the next section I teach you "How To Manage Your Trades". These option trading tutorials will explain certain setups and I will teach you how to adjust your option trades.

I believe that in order to be a good option trader, you must first be a good stock trader. In the next section, "Analysis - Technical, Fundamental, Market", I explain some key concepts for technical and fundamental analysis. I describe gaps, reversals, breakouts, "V Bottoms" and much more in these option trading tutorials.

As you read about option trading, you will come across many different approaches. Some are good and some are not. In this next section of my blog, "Option Strategies Good and Bad", I teach what I've learned over the past 20 years. I explain some of the strategies that I use and why they work. I also describe some of the option trading strategies that don't and I explain why they are flawed.

Options are a complex instrument and in the next section, "Option Intricacies - Expiration, Assignment, Volatility. " I describe some of the option trading nuances. Prices move very quickly and you need to know all of the details.

In the next section, "Relative Strength/Weakness - My Edge", I use option trading tutorials to describe my advantage. To be a successful option trader, you must use a systematic approach to increase your odds.

In the final category, "How I Trade Options", the option trading tutorials describe my personal philosophies and methods. I have been involved in almost every facet of option trading during my career and I have formed concrete opinions of what works and what doesn't.

I am forever a student of the market and I try to learn something new everyday. I hope that my option trading tutorials provide you with new insights.

Categories.

Option Trading Q & A.

Free Option Trading Event.

Feel the power of my systematic approach as I find new stock option trades. Space is limited for this live online presentation. Register Now.