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ed2go Business Finance Introduction to Stock Options
Return to Finance
how-to-trade-options

Introduction to Stock Options

If you've ever wanted to learn how to evaluate, buy, sell, and profit from stocks, this course is for you. By the end of it, you will be armed with investment tools that were once thought to be only for the pros!

You will begin by examining the origin of stock options and learn the real risks involved. Then, you will identify the jargon, symbols, and other peculiarities of options in a way that's easy to understand. You will explore exchange-traded funds (ETFs), which offer exciting option investments you may eventually consider. This course will give you a look under the hood of option pricing so you understand what contributes to option value. You will understand why some options are overpriced and some are underpriced - and you'll be able to tell the difference before you trade. Above all, you will learn how to protect your portfolio and profit in a down market, an up market, or even a flat market. Learn to leverage your investment dollars for potential profits that surpass those possible with stocks.

6 Weeks / 24 Course Hrs
Starting December 11, 2019

Offered in Partnership with your Preferred School

ed2go

Why this school? It's been chosen based on your location or if you've visited this school's website. Change School

Learning Method

Instructor-led

Confirm your Start Date in Cart

Starting December 11 | January 15
Self-Paced

No instructor. Study on your own schedule

Introduction to Stock Options

Details + Objectives

Course Code: iso

What You Will Learn
  • Learn the fundamentals of trading stock options
  • Examine the risks and rewards of numerous investment strategies and trading techniques
  • identify the jargon, symbols, and other peculiarities of options in a way that’s easy to understand
  • Discover investment strategies used by the pros and in a step-by-step, easy to understand fashion
How the course is taught
  • Instructor-led or self-paced online course
  • 6-12 weeks to complete
  • 24 course hours
How you will benefit
  • Gain confidence in your knowledge and ability with stock option trades that can benefit you financially
  • Discover the tips and techniques used by professional traders and gain insight into the world of investments
  • Get peace of mind by learning the risks and rewards associated with stock options

Outline

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Defining Stock Options

Are stock options worth your time and effort? You'll find out in this lesson. You'll explore where options originated and whether they are as risky as many people say. Then you'll go over the formal definition of an option so that you'll know exactly what you're dealing with. Finally, you'll look at some easy-to-understand examples to drive home each element of that definition.

Basic Terms and Concepts

What does "GOOG120121C00680000"mean . . . and why should you care? Every investment specialty has its own jargon, and options are no exception. This lesson will explain option symbols and other peculiarities in a way that's easy to understand. By the end of this lesson, you'll be able to identify any option just by looking at its symbol. You'll also explore exchange-traded funds (ETFs), which offer exciting option investments you may eventually consider.

Understanding Option Price Charts

One of the most important things to consider before you buy anything is its price. In this lesson, you'll learn where to find option prices, what they look like, and how to interpret each element in an option pricing chart. By the end of the lesson, you'll be a good option detective.

Option Profit-Loss Graphs

This lesson introduces you to an easy graphing system that will show what kind of profit or loss may be possible when you trade any option. These graphs bring clarity to even a complex option strategy. Armed with this knowledge, you'll enter any option trade fully aware of potential risks and rewards. You'll also know precisely where your break-even point is. All this information contributes to a fully informed trading experience.

Buying Long Call Options

Get ready to learn about your first basic option strategy—the long call. When you finish this lesson, you'll know the best way to profit when you think a stock price is about to go up. You'll also understand which option to buy depending on how bullish you are about that price movement.

Selling Short Call Options

This lesson will tell you where options come from and how you can, if you want, create them yourself. How? By selling a call option. This is called naked call writing, and it's one way you can use options to profit when you think a stock price is going to hold steady or drop. You'll learn the risk inherent in this strategy and what it means to be assigned.

Covered Call Options

You'll explore covered calls in this lesson. This strategy involves selling call options on stock you already own. It's a popular way of making a profit even when your stock's price isn't going up. You'll learn the how, when, and why of this essentially conservative strategy in one easy lesson.

Buying Long Put Options

Certain options profit when a stock drops. This lesson acquaints you with the put option, which is in many ways the mirror image of the call option. The versatility of the put option is very impressive.

Selling Short Put Options

Few investors know the benefits—much less the in and outs—of selling put options, but this lesson will fully acquaint you with both. Known as writing naked puts, this strategy is also a way to buy stock for less. And there's something to be said for collecting your profit up front and putting that money to use immediately!

Advanced Option Strategies

See the beauty of options as you learn about three combination strategies: the bull spread, the bear spread, and the long straddle. This taste of more advanced option strategies may whet your appetite for other, more esoteric combinations—and there are many. After this lesson, you'll have a good sense of how you can use option combo strategies to make profitable trades.

Course Summary and Guideposts

This is the lesson that pulls together everything you've learned into one cohesive overview. You'll also learn about market sentiment and examine how it influences which option strategy is appropriate and when. Finally, the lesson will discuss the concept of risk and how it's an integral consideration for any option investment strategy.

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Instructors & Support

Matt Crabtree

Matt Crabtree, CFP ®, earned his Bachelor of Science in Business, Information Systems Management, in 1999, a mini MBA certificate from The School of Management at Yale University in 2004, a certificate in Financial Planning from Pepperdine University's Graziadio School of Business in 2012 and has received the financial industry's most rigorous and prestigious professional designation of Certified Financial Planner ™. After many years in project management, office management, and business sales, Matt began training individuals and organizations in areas of business finance, leadership development, successful negotiations, sales management, and customer service excellence. Matt has trained individuals and various units within the U.S. Department of Defense, as well as corporate organizations including IBM (technology), Accuray (healthcare-technology), and Gen-Probe (molecular diagnostics). Matt is registered as a securities broker with the Financial Authority Regulation Authority (FINRA) and with the U.S. stock exchanges (NYSE and NASDAQ) and as an investment advisor with FINRA. Matt's natural aptitude for explaining his material in an easy-to-understand and enjoyable manner allows each student to gain insights into areas that are often considered challenging.

Requirements

Requirements

Prerequisites:

There are no prerequisites to take this course.

Requirements:

Hardware Requirements:

  • This course can be taken on either a PC or Mac device.

Software Requirements:

  • PC: Windows XP or later.
  • Mac: OS X Snow Leopard 10.6 or later.
  • Browser: The latest version of Google Chrome or Mozilla Firefox are preferred. Microsoft Edge and Safari are also compatible.
  • Adobe Flash Player. Click here to download the Flash Player.
  • Adobe Acrobat Reader. Click here to download the Acrobat Reader.
  • Software must be installed and fully operational before the course begins.

Other:

  • Email capabilities and access to a personal email account.
Instructional Materials

The instructional materials required for this course are included in enrollment and will be available online.

FAQs

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When can I get started?

Instructor-Led: A new session of each course begins each month. Please refer to the session start dates for scheduling. 

Self-Paced: You can start this course at any time your schedule permits.

How does it work?

Instructor-Led: Once a session starts, two lessons will be released each week, for the 6 week duration of your course. You will have access to all previously released lessons until the course ends.

Self-Paced: You have three-month access to the course. After enrolling, you can learn and complete the course at your own pace, within the allotted access period.

 

How long do I have to complete each lesson?

Instructor-Led: The interactive discussion area for each lesson automatically closes 2 weeks after each lesson is released, so you’re encouraged to complete each lesson within two weeks of its release.

Self-Paced: There is no time limit to complete each lesson, other than completing all lessons before your three-month access.

What if I need an extension?

Instructor-Led: The Final Exam will be released on the same day as the last lesson. Once the Final Exam has been released, you will have 2 weeks plus 10 days to complete the Final and finish any remaining lessons in your course. No further extensions can be provided beyond these 10 days.

Self-Paced: Because this course is self-paced, no extensions will be granted after the start of your enrollment.

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