Options Trading Made Easy: Options Trading Course

Any trader may want to become an options trader after a few years in the market. So, if you are in markets, you must have heard options trading makes huge money.

All you need to do is apply a few strategies & you are good to go. But you may not make consistent profits if you follow what others say rather than using your understanding while trading in markets. Or, after a point of time, you may only incur losses.

Yes, you can make consistent profits in options trading, but for that, you need to have an in-depth understanding of the subject in detail, especially the basics where you understand the various options strategies.

This course on Options Trading Made Easy is curated to give you a clear understanding of option trading basics and, in a structured way, an understanding of how to execute trades in the markets.

You will start with learning the basics of derivatives. Then, you will learn about options contracts, including its terminologies, intrinsic value and time value, pricing, moneyness and factors affecting the option premium, option Greeks, and practical aspects of trading. Once you are thorough with the basics, you will explore the various directional, non-directional or neutral, hedging and advanced strategies with the help of a case study. Additionally, you will look at the tax implications of F&O trading.

Please find below the topics covered in the course - Options Trading Made Easy:

Topic 1: Basics of Derivatives 

• You will first understand the concept of financial derivatives with the help of examples.
• Delve into how derivatives markets work.

Topic 2: Introduction to Options: 

• Here, you will understand the concepts of options and why they are known as derivative contracts.
• Gain a thorough understanding of the call and put by using examples.

Topic 3: Options Terminologies 

• You will learn about the strike price using the StockEdge App. 
• Understand the term expiry using the NSE website.

Topic 4: Options Buyers & Sellers

• You will understand the difference between the option buyers and sellers.
• Know how option contracts work for the option buyer and seller.
• Understand the basics of option premium.  
• Learn the difference between buying an equity & buying the call option and selling the equity & buying a put option.
• Understand the differences between selling an equity & selling the call option and buying an equity & selling a put option.

Topic 5: Risk, Reward and Payoff

• You will look at the risk, reward and payoff for call and put option buyers using real-market examples.
• Explore the risk, reward and payoff for call and put sellers with real examples.

Topic 6: Intrinsic Value and Time Value

• You will explore the concept of intrinsic value and time value of call and put.
• Understand the calculations of intrinsic value and time value of call and put.

Topic 7: Options Pricing 

• Now, you will see how these contracts work, how you can make or lose money in such contracts and what the option premium is. 
• Understand how you can calculate the premium using the Black Scholes and Binomial models.

Topic 8: Moneyness of Options & Factors Affecting the Premium: 

• You will look at the concept of moneyness, such as In The Money (ITM), At The Money (ATM) and Out of The Money (OTM). 
• Learn the factors affecting the premium, including the spot price of the underlying, strike price, expiry, dividend, interest rates, historical volatility and implied volatility.

Topic 9: Option Greeks

• You will learn the concept of various options Greeks - Delta, Gamma, Theta, Vega and Rho.
• Understand the practical implications of these Greeks.

Topic 10: Practical Aspects of Trading in Options 

• You will now understand concepts such as what happens when you hold the contract till expiry and whether you can exit the contract before expiry.
• Understand how the profit or loss is settled and the margin requirements. 

Topic 11: Volume, Open Interest and PCR 

• You will then move on to analyze the Volume and Open Interest. 
• Learn how to interpret the Option Chain from the NSE website and the StockEdge App.

Topic 12: Options Strategies

• You will explore directional strategies such as Bull Call Spread, Bear Call Spread, Bull Put Spread and Bear Put Spread.
• Look at the non-directional strategies, including the long strangle strategy, the short strangle strategy, the long straddle strategy and the short straddle strategy.
• Understand how to minimise losses by using hedging strategies such as Covered Call, Protective Put, Synthetic Short Call, and Synthetic Long Put.
• Look at some advanced strategies, i.e., Long Strip, Short Strip, Long Strap, Short Strap, Long Butterfly Spread, Short Butterfly Spread and Condor Strategy. 
• With the help of case studies, you will understand how to build and execute these strategies.

Topic 13: Resources 

• In this section, you will also learn how to interpret derivative data using StockEdge and the NSE website, which will help you make informed decisions.

Topic 14: Taxation

• You will explore the basics of taxation on F&O Trading.
• Get insights to determine the tax on F&O turnover.