Overview
One can be overwhelmed when they begin their option journey. The number of Option strategies can potentially be endless, but they do not need to be so complicated for the trader who is implementing them. This course is designed to time classic option strategies using Vega, which measures an option’s sensitivity to changes in the volatility of the underlying asset. This is done while looking for yield, length of hold, risk profile, and insurance. Students will work towards creating more efficient entries, quality yields, and shorter duration.
Traditionally Credit traders are encouraged to generate revenue via time decay. There are common pitfalls that occur when traders jump into a spread. They are usually unaware they are accepting an inferior premium for one of the spread legs. This forces the trader to “wait it out” or endure…until the time of expiration. Timing the entry into a spread and/or single leg is the solution.
Volatility is the key ingredient when timing entries. This course is designed to offer a fresh perspective on individual stock-implied volatility and uses micro volatility throughout the week to seek better yields. This process often leads to shorter durations and potentially more opportunities.
Online Trading Academy’s Timing Options with Vega is designed to offer a holistic approach on spreads and Single Leg trades. Scanning, trend, IV, “zoning”, timing, and order entry are all the ingredients used when Timing Options with Vega. Spreads should be constructed with risk profile, insurance, and profit goals in mind. Students will be walked through setups and order entry.
This course will cover:
- Who, What, Where and Why in relation to Credit spreads and Single Leg trades.
- Learn how to identify candidates – Consider Market overview, Trend, Average True Range (ATR), Up day vs. Down day, Net Change, and Timing Implied volatility.
- Screening through the thousands of tickers to narrow it down to a few candidates
- Learning how to create yield with volatility instead of time decay
- Identifying quality zones and learning how to place trades further OTM
- Catering spread-width to your business plan and comfort level
- Back testing and modeling
- Order Entry
- Looking for setups
Audience
This course is designed ideally for students who have completed OTA’s Core Strategy & Options Trader classes.
Prerequisites
Professional Options Trader course is strongly recommended.
Duration
Approx. 6 hours of live instruction & 4, 90-minute live sessions delivered post-class (weekly)
Access
6-hour class when purchased includes 4, 90-minute application sessions accessible from the same course
Class Type
Live Online class with Application Sessions