Tutorial on options trading

Tutorial on options trading

Author: motoMac Date: 01.06.2017

A really great way to learn options trading is through option trading tutorials.

What Are Stock Options? A Stock Options Trading Tutorial

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.

Ep 1.1 - Series Introduction

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. 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. 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. This trade discussion is for educational purposes only. I am NOT making any recommendations on the trade or the underlying stock or ETF. If you decide to follow this trade, please do so in a paper trading account. Trading options involves risk and some options strategies can result in losing more than the original amount invested.

Back to Option Trading Tutorials.

Back to Success With Options home. Check out these full length videos that contain lots of specific information about trading spread strategies at an excellent value. 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.

tutorial on options trading

Option Trading Tutorials A really great way to learn options trading is through option trading tutorials. Back to Option Trading Tutorials Back to Success With Options home. Newsletter Subscription Name Email I keep this private Subscribe now to receive your free promotional package.

Video Store Check out these full length videos that contain lots of specific information about trading spread strategies at an excellent value. Homepage Option Basics Option Strategies Options Brokers Technical Analysis Trading Systems Option Tutorials Options Education Investing Newsletters.

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tutorial on options trading

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