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Managing Options Positions in plain English

Rolling and adjusting your Options Positions to achieve consistently higher trading profits
4.8
4.8/5
(7 reviews)
75 students
Created by

9.6

CourseMarks Score®

10.0

Freshness

9.2

Feedback

9.1

Content

Platform: Udemy
Video: 1h 46m
Language: English
Next start: On Demand

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Detailed Analysis

CourseMarks Score®

9.6 / 10

CourseMarks Score® helps students to find the best classes. We aggregate 18 factors, including freshness, student feedback and content diversity.

Freshness Score

10.0 / 10
This course was last updated on 6/2022.

Course content can become outdated quite quickly. After analysing 71,530 courses, we found that the highest rated courses are updated every year. If a course has not been updated for more than 2 years, you should carefully evaluate the course before enrolling.

Student Feedback

9.2 / 10
We analyzed factors such as the rating (4.8/5) and the ratio between the number of reviews and the number of students, which is a great signal of student commitment.

New courses are hard to evaluate because there are no or just a few student ratings, but Student Feedback Score helps you find great courses even with fewer reviews.

Content Score

9.1 / 10
Video Score: 7.8 / 10
The course includes 1h 46m video content. Courses with more videos usually have a higher average rating. We have found that the sweet spot is 16 hours of video, which is long enough to teach a topic comprehensively, but not overwhelming. Courses over 16 hours of video gets the maximum score.
Detail Score: 10.0 / 10

The top online course contains a detailed description of the course, what you will learn and also a detailed description about the instructor.

Extra Content Score: 9.5 / 10

Tests, exercises, articles and other resources help students to better understand and deepen their understanding of the topic.

This course contains:

0 article.
31 resources.
0 exercise.
0 test.

Table of contents

Description

Options are one of the most versatile and widely used financial instruments today. They provide traders with leverage, allowing them to control larger-sized positions than they would be able to control directly on that underlying. More importantly, it provides them with the flexibility to create options strategies that have an exposure to specific risks while avoiding unwanted ones for example underlying price, implied volatility, time to expiration, etc. This makes them ideal for most traders but specifically for traders that have a probabilistic approach, rather than only deterministic based on fundamental or technical analysis.
One of the main differences between options and their underlying instruments in the case of stocks, ETFs and indices is that options have a limited lifetime while stocks, ETFs and indices do not. Options have an expiration date which determines their last tradeable date, after which they cease to exist. This introduces a limitation for the positions that can be put on when using options to reflect your views on the market or a specific underlying. Options strategies will always be limited to a duration that is determined by their components’ expiration dates.
In this course we introduce the concept of an Options Position, made up of a combination of options and stock. This options position is established with an initial trade but then managed as required by using adjustment trades to modify it, reacting to changes in the market or with our underlying. Focusing on an options position instead of individual options or options strategies will allow you to:
•React to changes in market or underlying conditions while maintaining the original premise behind the initial trade. For example, if you originally put on a Strangle but the stock blew through your call side you might want to roll up the put to neutralize delta while receiving additional credit.
•Reflect changes to your outlook for that specific underlying while making minor adjustment to your current position. For example, if you originally put on a Strangle because the outlook for your underlying was neutral but now you turn bearish because it went past your call side you might want to close out the put side and sell an additional call, turning your position from a neutral strangle to a bearish short call.
•Extend duration on positions where options expiration is approaching if you want to keep the position going or is a part of your core portfolio.
Managing your Options Positions will allow you to be a more focused, strategic and nimble trader so you can react quickly and always have the exact position you want as part of your portfolio. Your options position will be managed by making use of 7 types of adjustment trades, which we’ll be reviewing in detail:
•Adding a leg
•Removing a leg
•Rolling up
•Rolling down
•Rolling out
•Rolling up and out
•Rolling down and out
These adjustment trades, along with the exercise/assignment process, will determine the changes to your current position over time and it will be up to you as an Options trader to keep track of all the trades that go into your overall Options Position. This means tallying up all the credits and debits for all those trades so you always know what you have on and at what cost or for what credit. This is the basis for the concept of your Equivalent Options Position, which is the position you have on right now, considering all the different credits and debits starting with your initial trade and considering all adjustments and exercises/assignments that have taken place up until now.
We will review real examples of Options Positions and all the adjustments that were made to it along with how to analyze the different Equivalent Options Positions every step of the way from initial to final trade and all the trades in-between. All of these will be made using real market and trading data using thinkorswim.
Finally, we will explore the reasons why managing your Options Positions can be advantageous to you as an options trader and why it presents a superior alternative to simply using options strategies and sticking with individual trades. The most important reasons are:
•Defending Options Positions: Adjusting your position so you can recover from an adverse situation more efficiently.
•Taking Partial Profits: Modifying your position so you take advantage and materialize partial profits in your position while still keeping it on.
•Extending Duration: Keeping a position on, whether with the same strategy or a modified one, beyond current expiration dates.
•Managing Capital: Adjusting the buying power required by your position so you can use your capital more efficiently.
•Legging into Risk-free positions: Using adjustment trades to potentially take all your risk at some point during the life of the position so that from that point on it is risk-free and with guaranteed profits.
COURSE SUMMARY:
•The Life of an Option
How options are different than their underlying instruments and what can happen to an option during its lifetime and after its expiration
•Options Positions, Trades and Legs
Differences between an Options Position, a trade that can potentially adjust it and the different legs making up that trade.
•Describing Options Positions and their components
All the different components that make up the payoff diagram that we’ll be using througout the course to analyze options positions.
•Defining Adjustment Trades
Review, analysis and examples of all 7 adjustment trades that we’ll be using to manage Options Positions: Adding a leg, removing a leg, rolling up, rolling down, rolling out, rolling up and out and rolling down and out
•Running Totals and Equivalent Position
How to keep track of all credits and debits going into your Options Position from initial to final trade and all adjustments in-between.
•Managing an Options Position over time: Pepsico
Real example of an Options Position managed over time with an analysis of all adjustment trades and their equivalent position at that time.
•Monitoring Profits and Losses: Open P/L and Realized P/L
How to monitor your Options Position P/L in real time accounting for all trades from inception. Differences between Total P/L, Open P/L and Realized P/L.
•Reasons to adjust Options Positions
Review and examples for the main reasons why it makes sense to manage your Options Positions by adjusting them.
•Differences between current P/L and P/L at expiration for Options Strategies.
Analyze the impact of Time to Expiration and Implied Volatility in the difference between current and expiration P/L lines in payoff diagrams for Options Positions.

You will learn

✓ Manage existing Options Positions to take advantage of current market conditions and extend duration
✓ Understand the different types of adjustment trades like rolling up, rolling down, rolling out and their combinations
✓ Learn how to keep track of all the credits and debits going into your Options Position as a result of managing it over time
✓ Review and analyze real examples of Options Positions that are managed using adjustment trades
✓ Identify the reasons why it makes sense to manage your Options Positions
✓ Explore the concept of an Equivalent Options Position and what it tells you about your current and expected profitability
✓ Learn to monitor your Options Position’s P/L in real time using Total P/L, Open P/L and Realized P/L while understanding their differences and similarities

Requirements

• A basic understanding of what options are and how they work is helpful but not absolutely required

This course is for

• Anyone wanting to take control of their personal finances managing options positions to achieve it
• Beginners in the Options Markets wanting to improve their options trading skills
• Anyone familiar with Financial Markets wanting to add management techniques for Options Positions to their portfolio
• Active market participants wanting to complement their financial activities in Options with advanced management techniques
• Option traders wanting to expand their knowledge about managing Options Positions
• Students of Finance, Business or similar programs wishing to complement their academic and theoretical knowledge with practical management techniques for Options Positions

How much does the Managing Options Positions in plain English course cost? Is it worth it?

The course costs $14.99. And currently there is a 82% discount on the original price of the course, which was $84.99. So you save $70 if you enroll the course now.

Does the Managing Options Positions in plain English course have a money back guarantee or refund policy?

YES, Managing Options Positions in plain English has a 30-day money back guarantee. The 30-day refund policy is designed to allow students to study without risk.

Are there any SCHOLARSHIPS for this course?

Currently we could not find a scholarship for the Managing Options Positions in plain English course, but there is a $70 discount from the original price ($84.99). So the current price is just $14.99.

Who is the instructor? Is Options in plain English a SCAM or a TRUSTED instructor?

Options in plain English has created 3 courses that got 357 reviews which are generally positive. Options in plain English has taught 2,523 students and received a 4.5 average review out of 357 reviews. Depending on the information available, Options in plain English is a TRUSTED instructor.
Options Expert
Options expert with over 20 years of experience trading in several different markets and financial products with a passion for teaching basic to advanced options trading concepts and techniques in clear and simple terms.
My objective with this course is to help students acquire the necessary financial, mathematical and practical concepts to trade options efficiently and profitably. Students will also benefit with the expertise that comes with years of options trading experience along with thousands of trades in the options markets.

9.6

CourseMarks Score®

10.0

Freshness

9.2

Feedback

9.1

Content

Platform: Udemy
Video: 1h 46m
Language: English
Next start: On Demand

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