Intermediate level
From CBOE website
Index Options
Continuing Education Credit: 2 hours
Student Access: Valid for 6 weeks from date of registration
Retail Cost: $50
Course Overview:
In many ways index options are similar to options on individual stocks. They can serve as a way to add protection and diversity to your portfolio. Now that you have become familiar with options, let's take it a step further and explore the basics of Index Options.
This module will introduce some of the multiple indexes available as well as conservative ways to invest in those indexes.
Course Outline:
Introduction to Index Options
- Essential Terms and Definitions
Contract Specifications for Various Index Options
Investor Strategy #1
- A Conservative Way of Investing in the S&P 500 Index
- Profit and Loss Table and Diagram
- A Variation on the Buy Index Call and Money Market Strategy
Investor Strategy #2
- Protecting a Portfolio
Unique Aspects of Index Options
Reducing the Risk of Changes in Implied Volatility
- Profit and Loss Table and Diagram
- Recognizing the Trade-Offs
Options Price Behavior
Continuing Education Credit: 1 hour
Student Access: Valid for 6 weeks from date of registration
Retail Cost: $50
Course Overview:
Options can be compared to insurance policies. The factors that always affect an option's price: price of the underlying stock, strike price, time to expiration, interest rates, dividends, and volatility.
This module will examine these factors and the effect they may have in changing an options price.
Course Outline:
Options Compared to Insurance Policies
- Options as Insurance
Introduction to Volatility
How Option Prices Change
- Changing the Stock and Strike Price
- Days to Expiration and Interest Rates
- Dividend Yield and Volatility
Delta and Time Decay
- The Delta of an Option
- Call and Put Deltas
- Time Decay
Implied Volatility
- Implied Volatility - An Example
Using the Option Pricing Calculator
Trading Strategies
Continuing Education Credit: 1 hour
Student Access: Valid for 6 weeks from date of registration
Retail Cost: $50
Course Overview:
Trading options requires a different thought process than trading stocks. Traders should begin with a forecast that includes a specific price target for the underlying stock and a specific forecast for the time period.
Trading options is not easy. It takes time to learn the mechanics and it involves acting on intuition and closing positions at either a profit or a loss when market conditions dictate.
Course Outline:
Overview
- Trading and Leverage Defined
Stock-Oriented Strategy #1
- Covered Straddle
Stock-Oriented Strategy #2
- Stock Repair
Stock-Oriented Strategy #3
- An Alternative to Buying Stock on Margin
Buying Calls and Puts
- Buying Calls and Puts: Next Steps
A Trading Problem for You
Essential Option Dynamics - Trading Concepts, Pricing and Strategies
Continuing Education Credit: 4 hours
Student Access: Valid for 12 weeks from date of registration
Regular Retail Cost: $150
Special Promotional Cost: $125 (For a limited time, this price reflects a $25 savings)
Course Overview:
In this unit, we have combined three of our more advanced self-paced modules: Index Options, Trading Strategies and Option Price Behavior. Investors interested in continuing their quest for options knowledge will find this segment of the Online Learning Center an invaluable resource for gaining an understanding of the principles of trading index options, options pricing and practical uses of basic strategies. Experienced investors may find this area helpful as a refresher on trading and implementing forecasts.
Please Note: If you have already enrolled in one of the single modules included in this course, you may wish to enroll separately in the other single modules, instead of duplicating a module.
Course Outline:
Index Options
Concepts covered in this lesson include conservative ways of investing in an index fund, protecting a portfolio and the multiple indexes available.
Option Price Behavior
This lesson covers volatility, delta, time decay and implied volatility.
Trading Strategies
Topics covered include leverage, covered straddle, stock repair, LEAPS and buying calls and puts.
Covered Call Writing
Continuing Education Credit: 1 hour
Student Access: Valid for 6 weeks from date of registration
Regular Retail Cost: $50
Special Introductory Cost: $25 (Valid through December 2006)
Course Overview:
Covered Call Writing, our newest offering, discusses the basic terms of Covered Call Writing, writing calls against a long stock position, covered calls as an alternative to open orders, and the assignment of Short Calls. You also will learn about the return based strategy called the buy/write and how it can be managed by rolling, and much more.
Course Outline:
Basic Terms and Definitions
Writing Covered Calls
- Writing Covered Calls against a Long Stock Position
- Writing Covered Calls and an Alternative to Open Orders
- Will my Short Calls be Assigned?
- Qualified Covered Calls
The Buy/Write
- A Return Based Strategy
- Stock Outlook
- Comparing Buy/Writes on Two Different Stocks
- Buy/Writes: Possible Outcomes at Expiration
Managing Buy/Writes
- Rolling Out
- Rolling Up and Out
- When to Roll Positions
- Otehr Possible Rolls
