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Introduction to Stock Options

person icon Sumeet Sinha, MBA

Introduction to Stock Options

Beginner's Guide To Stock Options Trading

updated on icon Updated on Sep, 2023

language icon Language - English

person icon Sumeet Sinha, MBA

architecture icon Finance & Accounting,Trading & Stocks

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Course Description

The world of stock options can be confusing, even intimidating, to be honest. No wonder more than 80% of people never buy or sell stock options in their life. Have you been wanting to learn more about stock option trading? You are in luck! We have created a course that is perfect for a beginner in the world of stock options. 

In 2 hours, you should be able to understand in detail what call and put options are, what to consider before buying and selling stock options. With well paced lectures, whiteboard sessions, and live walkthroughs, learning about stock options will be a cakewalk for you.

The final quiz (15 questions) at the end will help you test your understanding of the key concepts. 

You also get a completion certificate to show your accomplishment! 


The course includes video content worth approximately 2-hours, broken down into 7 modules as outlined below.

Module 1

  • Contract on a Condo: How to benefit from price rise with just a fraction of the cost. (5 min)

Module 2

  • Introduction to Call Options and Put Options (3 min)

  • Option Premium vs Strike Price, Option Premium vs Time (5 min)

  • Premium breakdown – Intrinsic and Extrinsic Values (6 min)

Module 3

  • Why Should I care About options (6 min)

  • What is an Option Chain (5 min)

    • What is Exercising Option – Difference Between American and European style

Module 4

  • Whiteboard Session Call Option – stock price simulation to evaluate profits and loss on call option, identifying the breakeven point of call option (7 min)

  • Walkthrough of Call Option on a simple interface (Robinhood) (3 min)

  • Whiteboard Session Put Option – stock price simulation to evaluate profits and loss on put option, identifying the breakeven point of put option (6 min)

  • Walkthrough of Put Option on a simple interface (Robinhood) (2 min)

  • How can Put Option be Used as insurance (6 min)

  • Visualization of profit and loss zones on call and put options (4 min)

  • Walkthrough of Options on Yahoo Finance (7 min)

Module 5

  • The other side of the trade: Writing and Selling Options – what to consider before writing options (7 min)

  • Whiteboard Session: stock price simulation to evaluate profits and loss while selling covered calls, identifying breakeven point (7 min)

  • Whiteboard Session: stock price simulation to evaluate profits and loss while selling cash secured puts, identifying breakeven point (7 min)

  • How to buy stocks cheaper by selling cash secured puts (5 min)

  • Option Wheeling Strategy (5 min)

Module 6

  • Meet and Greet the Greeks – Delta, Gamma, Theta (7 min)

  • Implied Volatility and the Greek Vega (6 min)

Module 7

  • Walkthrough: Buy a call and put option on an advanced interface (ThinkOrSwim) (9 min)

Goals

What will you learn in this course:

  • I have created a course that is perfect for a beginner in the world of stock options.

  • In 2 hours, you should be able to understand in detail what call and put options are and what to consider before buying and selling stock options.

  • With well paced lectures, whiteboard sessions, and live walkthroughs, learning about stock options will be a cakewalk for you.

Prerequisites

What are the prerequisites for this course?

  • Very basic knowledge - know what a stock is and how to buy one.
  • For trading stock options, you will need a brokerage account with 'options trading' enabled by your broker.
  • For learning and following along, no brokerage account is required.




Introduction to Stock Options

Curriculum

Check out the detailed breakdown of what’s inside the course

Module 1
3 Lectures
  • play icon Promotional Video 01:25 01:25
  • play icon Course Introduction 05:18 05:18
  • play icon Please Read This 00:52 00:52
Module 2
3 Lectures
Tutorialspoint
Module 3
2 Lectures
Tutorialspoint
Module 4
7 Lectures
Tutorialspoint
Module 5
5 Lectures
Tutorialspoint
Module 6
2 Lectures
Tutorialspoint
Module 7
1 Lectures
Tutorialspoint

Instructor Details

Sumeet Sinha, MBA

Sumeet Sinha, MBA

Helping You Make Better Decisions

I am Sumeet, and I started the website Finpins.com – be finlightened (finlightened is a word I coined by combining the two words – finance and enlightenment) in 2019 out of a passion to empower more people with the right knowledge on finance. Later, in 2020 I started the blog StartOptions.com for investors who want to learn about the world of stock options and options trading strategies.

The more I talk to people, the more I am shocked to learn the state of financial awareness. I reflected back on my own life and realized that there’s little to no formal education provided in schools (and even colleges) regarding apparently the most important aspect of an adult life – finance!

 

Holding on to credit card debt at 18% interest rate while keeping cash in savings account at 0.01%?

Not funding your retirement account when employer gives away free contribution match?

It’s appalling! 

Let's fix that.

 

Everyone’s situation is different, and for some it may be difficult to do things differently than what they are doing right now. That’s fair, I understand that and respect that. But, I’m confident that a few minor tweaks in your strategy can go a long way.

 

With a strong educational background, corporate work experience, and insatiable curiosity, I am here to demystify the complex world and provide actionable insights that anyone can leverage and make better decisions.

Course Certificate

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