Many people who start out in trading begin with stocks. They can build out a stock portfolio over several years, and some event happens that turns the markets upside down. For many, that’s when they turn to Options. Why? Well, Options are designed to allow you the opportunity to lower your overall risk and generate income from otherwise languishing stocks. One Options strategy, Covered Calls refers to a financial transaction that allows the investor to “rent out” the underlying asset to generate an income stream. The main challenge with selling calls against shares is that the lack of leverage results in only moderate levels of income unless one has relatively large amounts of capital to invest in shares.
To get to that next level, there are strategies that allow investors to replace shares of stock with a longer-term option, thus potentially combining the power of leverage AND income at the same time. With proper risk management, this could move the needle! Even better, this can be done on bearish stocks as it can on bullish stocks. Now we're talkin'!
Many novice Option traders are always looking for the big score, and then get frustrated when their trading lacks consistency. Novices can miss the nuance of spread trading in a way that can allow for positive outcomes with directional appreciation, while at the same time collecting premium on a regular basis…and incorporating effective risk management strategies.
As a result, Online Trading Academy has created this class designed to help educated Options traders take advantage of these everyday opportunities in a flexible moderate way, across a wide range of market conditions and volatility situations.
Note: This class provides information about Horizontal Spread Strategies and offers instruction on how to trade them.
This course will cover:
- How to use Core Strategy to set up Diagonal Spreads across multiple volatility gauge readings.
- How to Scan for Opportunities – finding opportunities for stocks, ETFs, and indexes.
- How News and Economic Events can impact Horizontal Options trades.
- How to Analyze the Charts using Core Strategy to help identify areas of opportunities using CliK, OTA's proprietary Education, Charting and Analysis platform.
- How to Trade Calendar Spreads in such a way that you can take opportunities at CURRENT PRICE.
- Entering and then managing your Diagonal and Calendar spread trades using straightforward, consistent, methodological rules, and how to position size to manage your risk.
- How to exit the Strategy using simple order exit rules based upon the conditions in the markets.
This course is designed ideally for students who have completed OTA’s Core Strategy class. Traders with Options experience and/or prior Options education will benefit from learning these strategies.
Core Strategy and Options Trader courses required.
Approx. 6 hours of live instruction & 1, 1-hour live session delivered weekly for 4 weeks post-class
6-hour class when purchased includes 4, 1-hour application sessions accessible from the same course.
Live Online class with Application Sessions