Options Trading Course: From Theory to Practice

Posted by Traders Gurukul on January 21st, 2022

Many traders use options as an integral part of their trading strategy. Options can generate additional profit and offer a risk management opportunity that stocks alone cannot provide. Options are not chosen only for profit but also to increase the earnings generated by the shares, regulate their positioning, and hedge risks for shares and portfolios. Being a very malleable tool, every trader will be able to adapt them according to their needs, just like a tailor-made suit.

But before investing in option contracts, you must gain knowledge of option trading by enrolling yourself in a professional Options Trading course offered by industry experts. Before knowing how an options trading course can help you lead the options market, let’s know a little about options trading and its characteristics.

What are the Options?

Options belong to a broad class of financial instruments known as derivatives. Warren Buffett describes them as \"financial weapons for mass destruction.\" You can invest in certain opportunities with very limited capital, with time on your side, and you can protect yourself against any risk with a profit potential of up to 80%.

An option contract gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price or before a certain date. You can already forget this complex definition because we will eliminate all the complications through simple and effective examples through our path.

There are two main reasons an investor may resort to options: to speculate or to hedge risks. To be clear, speculation is like betting on the movement of a security, and hedging is like an insurance policy.

What are the characteristics of a good Options trader?

Options traders are willing to take the medium risk for a high reward (40-60% annual profit) for a medium/long-term financial impact, dedicating only 2 hours per month. In order to take advantage of the 80% profit potential right away, it is advisable to start from the basics.

Pros of option trading 

• Flexible              

• The profit potential of up to 80%     

• He takes Limited risk    

• Possibility to put shares in the portfolio to yield

Cons of option trading

• Leverage - can turn into a double-edged sword (you need to know how to use it)

• High risk (again, you need to know how to use it)

• It takes more initial study

Financial news and current events follow; their optimism makes them resistant investors, even in the face of adversity. They stick to the game even when the going gets tough.

If you are looking into options, discover the beginner Options Trading course, which will allow you to go from theory to practice, thanks to the first strategies to be tested in DEMO every week.

If, on the other hand, you are an experienced trader, you already know the basics and want to improve your skills and interact with other traders like you, take a look at the advanced options trading course where you can learn at work to make a profit of 80 % per annum, to see what instruments to use, how to analyze the data and implement the strategy.

What can you learn from the options trading course?

Within the options trading training, you will know the strong points of options trading, starting from the basic definitions to the first strategies.

The Options Trading course will help you to learn:

• Profiling the client to determine if the options are right for them

• Strategies based on market forecasts and the client\'s risk tolerance level

• Registration of orders

• Execution of orders on the floor of a stock exchange

• The settlement of options, the exercise or assignment of options, or the expiration of options

• The assessment of the tax consequences of any transaction on options listed on the stock exchange

Options are the only tool that allows you to profit from the markets without being directional, using only the passage of time. The Options Trading course will help you put into practice all the main strategies on the market:

• Vertical Spread

• Calendar Spread

• Straddle

• Iron Condor

• Butterfly

• Covered Call

• Iron Butterfly

• Diagonal Spread

The options are suitable for all levels of knowledge, but it is recommended to do a professional Options Trading course to cover the basics if you are starting from scratch. Thanks to the options trading course, you will be able to learn the theory needed to place your first order. All educational material is designed to free you from the complexity of options and give you only the information you need. Once you understand the mechanism, you will be able to manage your savings like a true professional.