Free Course Image Guide to Options Trading

Free online courseGuide to Options Trading

Duration of the online course: 1 hours and 40 minutes

New course

Master options trading with Zerodha Varsity's free online course. Learn about calls, puts, option Greeks, and advanced strategies like Bull Call Spread and Straddle.

In this free course, learn about

  • Options Trading Fundamentals
  • Call and Put Strategies Basics
  • Option Greeks and Risk Parameters
  • Margins, Settlement, and Option Strategies

Course Description

Are you eager to delve into the world of options trading? The "Guide to Options Trading" is the perfect course for you. Regardless of whether you are a novice investor or a seasoned trader, this course is meticulously crafted to provide you with a comprehensive understanding of options trading.

This course runs for an engaging 1 hour and 40 minutes, packing valuable insights into a succinct format. As you embark on this educational journey, you'll find yourself progressively mastering the complexities of options trading. Though the course is yet to receive reviews, its well-curated content promises to be both informative and transformative.

Belonging to the broader category of Business Administration and residing in the subcategory of Investments, the course starts by laying a solid foundation with an introduction to options. You'll gain clarity on the fundamental concepts and operational mechanisms of options trading.

From there, the course dives into the essential terminology, helping you familiarize yourself with the often-confusing jargons of the trade. Grasping these terminologies is crucial for effective communication and understanding within the trading community.

One of the pivotal points of the course involves understanding the payoff structures of various trades. With detailed explorations of the Long Call Payoff and Short Call Trade, as well as the nuances of Put Buy and Put Sell strategies, you’ll be well-equipped to make informed trading decisions.

The course then leads you through summarizing call options, ensuring that you have a comprehensive grasp of the concept before advancing. Understanding the "Moneyness" of an option, which defines the intrinsic value, is another key component that the course deftly covers.

Diving deeper, the course introduces The Option Greeks, which are vital indicators of options' price sensitivity. You’ll explore Delta, Gamma, Theta, and Vega in dedicated sections, learning how these factors influence trading strategies and risk management.

The practical aspects of trading are not overlooked, with sections dedicated to Margins and the physical settlement of futures and options. These topics ensure that you’re not just theoretically equipped but also understand the real-world applications and requirements.

To round off your learning experience, the course presents strategic approaches such as the Bull Call Spread and The Straddle. By mastering these strategies, you’ll be able to navigate the options market with greater confidence and precision.

In summary, "Guide to Options Trading" offers a structured and comprehensive learning path into the intricate world of options trading. Upon completion, you will be well-versed in both fundamental concepts and advanced strategies, positioning you to trade options effectively and efficiently.

Course content

  • Video class: 1. Introduction to Options 08m
  • Exercise: What is the primary benefit of using options trading as illustrated by the example of the trader betting on the Lok Sabha election results in the Zerodha Varsity guide?
  • Video class: 2. Option Jargons 06m
  • Exercise: In the video about options trading, what does '460 CE' signify in regards to the call option on State Bank of India (SBI)?
  • Video class: 3. Long Call Payoff and Short Call Trade 10m
  • Exercise: What is the break-even point for the buyer of a call option with a strike price of INR 460 and a premium paid of INR 17.50?
  • Video class: 4. Put Buy and Put Sell 08m
  • Exercise: Which of the following best explains the benefit of purchasing a put option?
  • Video class: 5. Summarizing Call 05m
  • Exercise: What action should an investor take if they have a bullish perspective on an underlying stock?
  • Video class: 6. Moneyness of option 07m
  • Exercise: What does the concept of moneyness in options trading refer to?
  • Video class: 7. The Option Greeks - Delta 11m
  • Exercise: What is the range of delta for an out-of-the-money call option?
  • Video class: 8. Gamma 05m
  • Exercise: What is the primary characteristic of an option's gamma?
  • Video class: 9. Theta 07m
  • Exercise: In options trading, what does the option seller generally expect as the time to expiry gets closer?
  • Video class: 10. Vega 04m
  • Exercise: What does the Vega of an option represent?
  • Video class: 11. Margins 04m
  • Exercise: How does the purchase of a protective put option impact the margin requirements for an options trader also holding a long position in the underlying futures?
  • Video class: 12. Physical settlement of futures and options 06m
  • Exercise: What is the outcome for an option buyer with a long in the money call option at expiry?
  • Video class: 13. Bull Call Spread 06m
  • Exercise: In a bull call spread strategy, what is the outcome when the market price of the underlying stock or index falls significantly after initiating the position?
  • Video class: 14. The Straddle 06m
  • Exercise: What is the primary advantage of using a delta neutral strategy in options trading?

This free course includes:

1 hours and 40 minutes of online video course

Digital certificate of course completion (Free)

Exercises to train your knowledge

100% free, from content to certificate

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