02 May 2008

Introduction To The Options Trading Guide

The purpose of this site is to build, over time, a free industry standard course on options. A no-cost resource for options traders, or those considering becoming an options trader, to use at will, for however long you like and without having to sign up to any email marketing to clog up your inbox.

Furthermore, it is to be a collaborative process. All sections of the course are open for specific questions on the current topic, constructive criticism, requests for clarification, inclusion of oversights and omissions, etc. I want this to be the best it can be for retail options traders, so your comments are all welcome.

I think there is an unfilled niche for a serious, no BS options guide tuned specifically retail options traders whether they are just starting out, or have a little bit of experience, to take them to the next level. A course written by someone who has come up through the retail trader ranks and knows exactly how you’re all thinking at different stages, and how to progress without having to be super intelligent and overly mathematical.

The goal is to get you to a level of proficiency and long-term profitability.

This will take shape in four stages.

1. The Basics. Just in case you don’t already know.
2. Options Pricing, Volatility & The Greeks. This is an area that is skimmed over or completely ignored by many resources, or it is covered in a highly abstract and technical fashion. This area is extremely important to understand for long-term success and in fact, understanding here opens up a whole myriad of new trading possibilities.
3. The Strategies & Synthetic Relationships. More than a ready reckoner like most strategy lists, the trader needs to be able to think creatively to construct trades to suit his/her view and to achieve the particular goal in mind.
4. Trading in the Real World. In most books and courses, everything is structured in black or white, win, lose or draw. It is all nicely constructed with hand chosen scenarios. But we all know that trading in the real world doesn’t happen that way, don’t we. Stuff happens all the time, so the options traders need to know what to do when things go wrong when and how to defend and adjust positions, how to protect your capital.

Welcome to the journey. I can attest that going to the trouble of learning this properly IS definitely worthwhile.

It is a journey, an apprenticeship if you will, so take your time with this. Learn in small bite sized chunks, absorbing and mastering one concept at a time, take small breaks of a few days and come back to review and move on to the next concept.

To quote an old horseman’s saying: “If you take the time it takes, it takes less time.”

Next - Why You Should Trade Options

1 comment:

Anonymous said...

Hey Wayne!!

Thanks for taking on such a task as this. It is indeed refreshing to read a no BS guide to Options, as I am tired of the hyped-up BS of programmes and software that is currently out there.

Thanks so much!

God bless!