Option Basics - Your First Strategy
Here you will learn why Options are the most versatile trading instrument available on the market. You will see how to harness the power of Options to take your trading to the next level!
- Trade as a business and stack odds of winning in your favor!
- Review real trades that won thousands of dollars!
- Witness trade adjustments made to REACT to stock price moves
- Learn what options are and how they are valued
- Learn how to use options as Risk Management tools
Approach to Profitable Options Trading
These courses will teach you to trade as a business. This incorporates statistically sound trading strategies, financial analysis, and tax planning! A trading business is similar to other businesses in that you need to generate consistent cash flow in order to predict and plan for growth; however, it is unique in that it offers a wonderful business model including limited overhead costs, zero product liability, zero inventory, and no sales or customer service. It also offers the most favorable tax structure of any other business since there are no self-employment taxes, only capital gains. You can start your trading business with as little as $10,000 to start generating $500 - $2,500 per month of trading profits safely. These courses emphasize and illustrate only high-probability trading techniques that achieve high win rates, typically around 60-80%. Trading techniques and examples will be illustrated using free tools available to everyone on the internet.
Rule #1 is always protect your downside. This course goes past the basic protection of Puts and shows you how to hedge your risk for individual stocks or entire portfolios in both retirement and non-retirement accounts. You can even hedge your downside risk for stocks you will own in the future, such as when you exercise options granted by your employer. Learn how to get portfolio insurance for NO cost!
- Learn a new strategy to limit your risk in all situations!
- Review 3 real trades used to generate annual returns >86%
- See the strategy produce $2,140 Profit with only $2,860 of trading capital at risk. That's a 75% return in 30 days!
Identifying Risk
In theory, any investment carries some risk of loss. Your investment in your home and cars, for example, could be destroyed in fires or accidents. If your home burned down to the ground, your investment in your house would be worth very little. To offset the risk of loss on your assets, you purchase insurance where you pay a premium to obtain coverage for a period of time. Your premium may be more or less expensive depending on the size of your deductible. The larger the deductible, the less expensive your premiums will be. That is because you are assuming more risk with a larger out of pocket deductible.
Your portfolio also carries risk of loss. All assets in a well diversified portfolio of stocks, bonds, and mutual funds carries risk of loss and could theoretically go to zero. The odds of that happening are slim, but there is a risk that you would lose all your assets in your portfolio. Options can be used as risk management tools to prevent loss in entire portfolios. We will review techniques to reduce risk to your acceptable levels. Since options essentially serve as insurance on your portfolio, you will have similar choices involved with other insurances. You must decide how much coverage you need, how long you need it, and how much of a deductible you want. The first step is identifying risk points. The risk in going long securities is that the value goes to zero and you lose your entire investment.
This course explores the many disciplines involved in analyzing stocks. Learn to analyze a stock using a blend of Fundamental, Technical, and Sentimental analysis techniques. Increasing your stock analysis skills will provide increased trading profits.
- Learn where to find good trading opportunities quickly and easily
- Learn various analysis techniques including Fundamental, Technical, and Sentimental
- Review examples of indicators and valid Buy/Sell signals
- View websites where you can get all the trading information you need for Free!
Stock Analysis Overview
Although the strategies presented in the TradewithOptions.com courses build in margins of error that greatly increase your probability of winning, an important factor for increasing your profitability in trading is knowing how to analyze a stock to determine potential stock moves. By capturing the stock move in your trade, you will increase your profitability. No one can predict the future and know which way a stock will move; however, there are analysis techniques available to help you form an opinion on which way the stock will move. Understanding how to combine these analysis techniques with your trading strategy will elevate your profitability.
This course will illustrate several of the most common analysis techniques available to help you increase the profitability of your trading. We will examine Fundamental, Technical, and Sentimental analysis. Our emphasis will be on Technical analysis which focuses on shorter term trading time frames that coincide with the strategies discussed throughout the program.
Learn two basic strategies that will provide high returns and are great trade setups. Although you can use these strategies to build a solid business plan, these essential strategies will become the adjustments to better trade setups in the advanced courses.
- Learn unique approaches to Bull Call spreads and Bear Put spreads that generate >80% win rates!
- Review 3 real trade examples that generated huge Profits!
- See one trade that won 19% in only 30 days. That equates to annual rate of return of over 700%
- Profit from stocks that move up or down
Debit Spreads Overview
The previous strategies reviewed (Deep ITM Covered Calls and Collars) have included combinations of stock, or single stock futures, and options in the initial trade. In this course, we will examine a strategy that combines two different option contracts into one trade and eliminates the need for using stocks or single stock futures in your initial trade setup. These strategies are called Debit Spreads in the options world. The strategies are spreads because the structure of the trade essentially spreads the risk between various option contracts. It carries the name Debit spread because to initiate the trade, you will have a debit in your brokerage account which means it will cost you money up front to put on the trade. Credit spreads, by contrast, put money in your account upfront. In this course we will examine two types of debit spreads: Bull Call Spread and Bear Put Spread.
You can structure debit spread trades to profit from stocks that are moving up or down. To increase your profit potential, your stock analysis techniques will come into play for debit spreads. You will still build in margins of error into your trades to increase your probability of winning and you will be able to profit even if your analysis of stock movement is wrong.
Debit spreads can earn highly leveraged returns since they require much less capital upfront. This will build on our previous strategies learned and fix some of the drawbacks of using the Deep ITM Covered Call and Collar trade. The Collar trade reduced the amount of dollars at risk from the Covered Call strategy, but still required large amounts of capital to put on the trades. Debit spreads will address that issue by drastically reducing the amount of capital required to initiate a trade, while still providing risk management and reward potential.
These two essential strategies put cash in your pocket up front. Learn how to generate cash flow consistently. I play these strategies every month!
- These are very high probability trades. Win more than 80% of your credit spreads by implementing our unique strategy play.
- Review 3 real trade examples that generated huge Profits!
- See one trade that won 15% in only 35 days. That equates to annual rate of return of over 320%
- Profit from stocks that move up or down
Credit Spreads Overview
Credit Spread strategies are similar to Debit Spreads although they are opposite strategies. Like the Debit Spreads, the Credit Spreads are strategies that essentially spread the risk between various option contracts. They carry the name Credit spread because to initiate the trade, you will have a Credit in your brokerage account which means it will put money in your account up front. In this course we will examine two types of Credit spreads: Bull Put Spread and Bear Call Spread.
You can structure credit spread trades to profit from stocks that are moving up or down. To increase your profit potential, your stock analysis techniques will come into play. You will still build in margins of error into your trades to increase your probability of winning and you will be able to profit even if your analysis of stock movement is wrong.
Credit spreads can earn highly leveraged returns since they require much less capital upfront while still providing risk management and reward potential. Although, they are similar to Debit Spreads, the primary difference between the two is the level of implied volatility levels. For the debit spreads, you identified potential trades where implied volatility was at low levels. Since we are spreading risk between two different option contracts by being long and short at the same time, the time value decay and changes in volatility values of one contract offset the other. The point of getting into debit spreads when volatility is low is to increase our adjustment potential of the trade. For credit spreads, you want to identify potential trades where implied volatility is at high levels. When volatility is higher, entering a credit spread will have increased adjustment potential for when our trades move against our expectations.
Before you trade with real money, you need this course. Learn how to maximize the tax system so you keep more of your gains. Learn the benefits of creating separate entities to trade within and the tax benefits of certain securities we will trade.
- Learn which options to trade to cut your taxes in half!
- See the tax impact of various trading instruments
- Understand the tax laws affecting stock, options, futures, and commodities
- Should you create your own Corporation or LLC to trade within?
- See how two traders compare when one knows the tax law and one does not. The tax wise trader saved over $19,000 in taxes!
- Why your CPA won't know the tax law affecting transactions involving options and futures
Business Plan Essentials Overview
The TradewithOptions.com courses will teach you to trade as a business. A trading business is similar to other businesses in that you need to generate consistent cash flow in order to predict and plan for growth; however, it is unique in that it offers a wonderful business model including limited overhead costs, zero product liability, zero inventory, and no sales or customer service. It also offers the most favorable tax structure of any other business since there are no self-employment taxes, only capital gains. You can start your trading business with as little as $10,000 to start generating $500 - $2,500 per month of trading profits safely.
There are two ways to get more cash out of your small business: Either you grow your revenue stream or you reduce your cost structure. This course will examine many strategies to reduce your cost structure by focusing on your largest expense: tax! This course will have a large impact on the amount of profits you will keep in your trading account.
There are many nuances within the US tax code that provide many benefits specifically for traders and trading businesses. This course will highlight many ideas to let you keep more of the trading profits you earn. Many differences between individual taxation and business taxation exist for you to explore. This course will review Securities taxation, Trader Tax Status, and reasons to setup new legal entities for your trading business.
Learn advanced trade setups that are easily adjusted to allow you to REACT to stock price moves. These are very versatile trades that will incorporate several adjustments.
- Our unique approach to Calendar spreads makes it easy to make money
- Review 3 real trade examples that generated huge Profits!
- See one trade that won 79% in only 30 days. That equates to annual rate of return of over 2,000%
- Profit from stocks that trade within a range
- Easily adjust your trades to REACT to stock price moves
- These 2 strategies require the lowest amount of capital! You can trade using these strategies with only a few hundred dollars!
Calendar Spreads Overview
Calendar spreads are a new strategy that takes advantage of option valuation components not related to the stock price. This makes it very easy to adjust the trade in any direction a stock moves. You will simply react to where the stock moves and adjust your calendar spread accordingly. Like the Debit and Credit Spreads, the Calendar Spreads are strategies that essentially spread the risk between various option contracts. They carry the name Calendar spread because you are spreading risk between option contracts in different months on the calendar. In this course we will examine a conservative approach to using Calendar spreads that will lower your margin requirements to bare minimums and that provide excellent reward potential.
Calendar spreads can earn highly leveraged returns since they require much less capital upfront while still providing risk management and reward potential. You can structure calendar spread trades to profit from stocks that are moving up or down. To increase your profit potential, you will simply react to stock movements and adjust your trade. In a calendar spread, you will buy and sell option contracts of the same strike price with different expiration months. The idea behind this trade structure is to take advantage of the characteristics of time value decay. As you know from the Options Basics course, time value decays at an exponential rate in the last 30 days of an options life. We will capture that increased rate of time value decay for our profits.
Advanced Neutral Strategies
When stocks are trading within a range, you can employ several strategies to take advantage of predictable support and resistance levels to profit from stagnant stocks.
- Learn 3 new strategies that will generate profits whether the stock moves up or down. Play both sides of the stock to win in either direction
- Review 3 real trade examples that generated huge Profits!
- See one trade that won 54% in only 11 days. That equates to annual rate of return of over 4,000%
- Profit from stocks that move up, down, or that even stay flat
- Learn invaluable trade adjustments so you know how to maximize profits when stocks move in any direction
Advanced Neutral Strategies Overview
In this course we will review several strategies that are neutral in their bias of anticipated stock movement. This means the stock can go up or down and you will be able to profit in either direction. Contrary to previous spread strategies, the advanced neutral strategies will combine calls and puts into one trade. As always, we will present a unique approach to implementing these strategies that will increase the probabilities of winning.
Trades combining calls and puts are different from spreads where a trade involves buying and selling contracts. In these combination trades, two different options (calls and puts) are purchased simultaneously. Because we are long both calls and puts, the time value will decay twice as fast. Implied volatility will also be very important in these trades. The ideal time to enter these trades is when implied volatility is at low levels. When implied volatility levels are low, option premiums are less expensive and we can put on the trade with less capital. We will need to react to stock price movement and adjust our trades timely to lock in profits.
Two combination strategies we will review include the long straddle and long strangle. These strategies can be profitable because the risk is fixed at the price paid to enter the trade while the reward potential is unlimited. In addition, we will cover a related short straddle trade. Of course, the TradewithOptions.com strategies will be applied in a unique way to capture more winning trades. We will also describe adjustments available to increase profitability.
Advanced Combination Strategies
Learn to combine multiple strategies on one stock that only consumes the margin of one trade and guarantees a winner. Play both sides of stocks so you can win if they go up and you win if they go down.
- Learn 2 new strategies that will generate profits whether the stock moves up or down. Play both sides of the stock to win in either direction
- These strategies require minimal trading capital since you are guaranteed a winner
- Review 3 real trade examples that generated huge Profits!
- See one trade that won 15% in only 11 days. That equates to annual rate of return of over 2,800%
- Profit from stocks that move up, down, or that even stay flat
- Learn invaluable trade adjustments so you know how to maximize profits when stocks move in any direction
Advanced Combination Strategies Overview
In this course we will review several strategies that profit from stocks that are trading within a range. The advanced combination strategies are simple variations of strategies presented in earlier courses with dynamic hedges in place for risk management. As always, we will present a unique approach to implementing these strategies that will increase the probabilities of winning.
Part of the benefits of using these Advanced Combination Strategies is that they do not require any more capital to initiate a trade than a one sided spread trade. You are playing both sides of a stock therefore you are guaranteed a win on one side. Your broker will take that into consideration and only require the margin for one side. You can potentially win on both sides of the trade if the stock stays flat.
In these combination trades, we are establishing a price ceiling and a price floor for the stock. Since we are playing both sides of a stock, we will profit from the time value decay and be able to adjust to a directional stock move. Ideally, the stock will trade flat and we will profit on both sides of a trade.
Two combination strategies we will review include the butterfly and dual credit spread strategy. These strategies can be profitable because the risk is fixed and we are guaranteed a win on at least one side of the trade. Of course, the TradewithOptions.com strategies will be applied in a unique way to capture more winning trades. We will also describe adjustments available to increase profitability.
The Systematic Writing course is a complete trading system involving trade setups, initial adjustments and secondary adjustments to generate huge profits! Learn what to do when your initial trade setup goes against you so you can still come out a winner.
- Learn this complete Trading System that produces huge Profits!
- Learn how to make money even when you are 100% wrong on your analysis
- See one trade that won over $2,000 even when the stock dropped 16% against our expectation.
- Profit from stocks that move up, down, or that even stay flat
- Learn invaluable trade adjustments so you know how to maximize profits when stocks move in any direction
- Use the strategy flowchart diagram as a road map to your trading
Systematic Writing Overview
In this course we will review a complete strategy including trade setups, initial adjustments, and secondary adjustments. Our goal will be to generate cash flow every month, while planning ahead for our primary and secondary adjustments if our initial trade moves against us.
In the Systematic Writing strategy, you should trade options only on stocks you would be comfortable owning long-term. This strategy is to be used by stock traders in place of buying stocks outright. The key to success is knowing your adjustments and exit strategies prior to entering your initial trade. The adjustments in this strategy will require more capital than the initial trade so planning ahead is critical for margin management.
The basic premise of the strategy is that a trader initiates a Bull Put credit spread on a stock he anticipates increasing. If the stock subsequently increases, the trader wins and keeps the entire credit received from the first trade. This will provide the monthly cash flow benefit on low margin requirements. If the stock subsequently decreases, the trader will have three alternative adjustments available. We will review the three alternative adjustments in theory and review this strategy in practice using real trade information.
Options to Repair Losing Stocks
If you currently own stock in a losing position, or if you will ever own stock in the future, learn these strategies to get out of a losing stock position at breakeven or even a small profit. These strategies are great at rescuing stocks.
- Learn 4 new strategies that will recover your losses in your stock position
- See how to get out of your losing stock at breakeven or maybe a slight profit
- Strategies are categorized based on the size and length of time in a loss
- Learn how to use the advantages of options to repair the value of your losing stock positions
Options to Repair Losing Stocks Overview
In this course we will review several strategies designed to use options to help recover losses incurred on stock positions. This course assumes you have been in a stock only position that moved against you and you have no Puts as insurance on your investment. These strategies can also be applied to options traders that are holding stock through assignment on options, such as a Bull Put credit spread where the stock decreased. Inevitably, stock traders find themselves holding onto stocks that have decreased in value. The larger the paper loss on the stock, the less likely a stock trader will sell it and move on to the next trade. Even when stock traders utilize stop loss orders, often they find themselves holding onto losing stocks and praying that the stock price increases just enough so that they can exit the stock at breakeven or even at a small loss. We will examine four variations of option trades designed to recover losses incurred in stock trades with the assumption that the stock trader wants to exit the trade at breakeven and not use the trade as a profit opportunity. The stock trader must also have the expectation that the stock has sustained the majority of the losses and will bounce back up slightly. If the stock trader anticipates the stock continuing downward, a risk management program would be better. The goal of these four strategies is to lower the cost basis of your losing stock while you still own it, which will allow you to sell the stock at a lower price to breakeven. To help distinguish which of these strategies to use in practice, we will detail them in terms of losses incurred on the stock. The first two strategies are best used on stocks that have had small losses in a short time frame. The third strategy is designed for stocks that have larger losses over a longer time frame, and the fourth strategy is applicable in any loss situation over any time duration.
The Advanced Ratio Spread course combines your technical analysis skills with advanced options knowledge to show you how to leverage into huge profits. Learn the strategies the professionals use to make thousands of dollars on each trade.
- Learn 2 new strategies the professionals use that will either generate profits or breakeven
- You can even structure these trades to guarantee a profit
- Review 2 real trade examples that generated huge Profits!
- See one trade that won 1400% in only 37 days. We made $2,820 in Profit on a trade that only required $200 to initiate.
- Profit from stocks that move up, down, or that even stay flat
- Learn invaluable trade adjustments so you know how to maximize profits when stocks move in any direction
Advanced Ratio Spreads Overview
In this course we will review a more advanced strategy that incorporates your technical analysis skills to build a very high reward trade. It is used by professional option traders and floor traders alike and can be structured using calls or puts. Ratio spreads are an advanced spread trade that provides for buying valuable options rich in Intrinsic value by selling a higher number of worthless options comprised of Extrinsic value. Ratio spreads essentially sell junk options to generate cash flow needed to buy valuable options. With this strategy, you can generate very large returns if the stock moves in your expected direction, while also limiting losses for stocks that move against your expectation. As always, we will present a unique approach to implementing these strategies that will increase the probabilities of winning.
Your technical analysis skills will determine the profitability achieved using ratio spreads. If you have had steady success and are fairly competent in technical analysis and regularly predict stock price moves within an acceptable tolerance range, ratio spreads will significantly magnify your winnings. The key to success with ratio spreads is to know the stocks you are trading and technical indicators that work consistently with that particular stock. Be sure to only use this strategy on stocks that do not have any pending news that could drive the stock price in a particular direction quickly, such as earnings releases, product announcements, and potential mergers and acquisitions.
We will review the Ratio Spread as well as introduce a lower risk structure of the ratio spread. In practice, you should start with the modified ratio spread and work your way into a standard ratio spread. We will review adjustments to consider for both versions of the ratio spread to hedge our risk.
The Dividend Income Strategy is virtually a risk-free trade setup that can be used anytime a dividend is declared. You can receive the dividend and profit in as little as one day.
- Learn this virtually risk free strategy that profits by the amount of the dividends issued
- Worst case scenario is a breakeven trade
- Understand the mechanics of dividends and key dates
- Learn how common stock splits affect stock prices and option valuation
Dividend Income Strategy Overview
In this course we will review a unique low risk trade setup designed to capture dividends paid by companies. As you know, option holders do not participate in dividends like typical stock holders do; however, with this strategy, you can design a trading plan to focus on capturing dividends in stock with very little risk using a combination of stocks and options. The dividend income strategy can be initiated and closed over a one day period to capture profits equal to the amount of dividends paid by the company. In order for this strategy to be effective, you must be fluent in how companies pay out dividends and know the key dates related to the payment. This course will review the essential elements involving corporate dividend payments as well as commons stock split scenarios. We will then move on to the Dividend Income Strategy in detail.
Our Home Study Training Guide and CD Package includes over 243 color pages of option trading strategies and how-to guides along with over 30 hours of recorded video presentations with our professional traders showing you real life examples of these option trading strategies and tips for successfully using these strategies in your trading!