Options Trading Crash Course: Discover the Secrets of a Successful Trader and Make Money by Investing in Options with Powerful Strategies for Beginners

By Mark Davis

Are you tired of having to work for others?
Are you looking for a second income because your salary is not enough?
Or do you feel the need to find a job that allows you to travel the world and work wherever and whenever you want?

If you answered "Yes" to at least one of these questions, then keep reading...

Many traders have completely changed their lives thanks to options trading, an investment methodology with great potential that allows you to earn money by investing in options.

Why have they succeeded while so many other people have failed?
What do all the biggest option traders have in common?

By reading this book you will have the answer to all these questions with practical examples, techniques, methodologies and powerful tips that have taken thousands of people from losing money to being profitable traders.

Here's what you'll find out:
✅The true strength of an options trader
✅All you need to know about options trading to get started
✅The most profitable markets for an option trader
✅The Secrets of a perfect technical and fundamental analysis
✅Winning options trading strategies
✅The best platforms for option trading
✅Powerful insight of Money and risks management
And much, much more…


Even if you don't know anything about options trading, don't worry; this book was written with the intent of giving you thorough knowledge on the topic, along with all the necessary means to start operating independently and make profits.

If you have read up to this point, you are definitely a determined person, ready to act like a professional trader to live the life you have always dreamed of. Don't waste time, get this book now!

• Language: English
• Publisher: Mark Davis
• Release date: May 4, 2022
• ISBN: 9798201047962

Mark Davis

Mark Davis is a former White House speechwriter and a senior director of the Washington-based White House Writers Group, where he has consulted with the Defense Advanced Research Projects Agency (DARPA), as well as with some of the nation's leading telecommunications, information technology and defense-aerospace companies. He is a frequent lecturer, writer and blogger on politics, technology, and the future.

Book preview

Introduction

In this volume, I'm going to introduce this fantastic and interesting world for you. Options trading sounds complicated, but the reality is pretty simple. You just need a serious person to explain it to you.

I'll start by explaining the basics of options trading and how Options are used to make gains. Of course, like in all kinds of investments, there are risks. Even in this.

But against others, options require relatively small amounts of capital to start. This means that you can experience some losses without losing huge amount of money.

And most of the time, you can avoid losses if you are well prepared. The key is understanding when to get in and out of trades and what strategies should be used to minimize losses and increase profits.

I will cover this kind of information using understandable and clear explanations so that you can get started trading as soon as possible.

I Can't assure you won't lose money. It's part of the process, but if you follow my advises, you can develop a solid trading plan with options and it will be relatively easy to protect your investment account.

To prepare you better, I will also explain some of the big reasons people lose money following this path.

Options trading isn’t for everyone. It does require active involvement in the market, and you’re going to have to follow the market reasonably carefully to survive and make profits. So, let me state upfront that if you are the kind of investor who wants to set it and forget it, options probably aren’t going to be of interest. They have a limited lifetime, and they can gain or lose value very quickly, and so it requires a lot of diligence and keeping up with what’s going on with the markets to be successful.

With that being said options aren’t nearly as complicated as people imagine. So, if you’re a little bit cautious about becoming actively involved in your trading, let me suggest you give it a chance and read the book before deciding whether options trading is something that you can include as part of your investment plans. If you are brand-new to options, you need to understand that options trading is done to make profits over the short term. Options trading is not about long-term investing or even something like swing trading over months.

Chapter 1: How to Get Started in Options Trading

Walking you through the learning curve of options trading will always start with the most basic move you’ll need to make: setting yourself up in a position actually to be able to trade.

To do that, you’re going to need an options account. For now, you must know your starting point –and just how easy it is to reach it.

One thing to know before you pick your firm: times have changed considerably over the last couple of decades when it comes to options trading. Back before the internet became such a constant part of our lives, your brokerage firm – or, at least, your representative at the firm – would make your options trades on your behalf and you paid a hefty price for their services. Nowadays, however, you’ll be doing most of your trades yourself. Commission for your representative is thus a whole lot lower than it used to be, which means it won’t cost you an arm and both legs to rely on your rep in the early days of your experience. While you are learning, feel free to make use of your firm’s services to place and confirm your trades, if it helps you feel more comfortable getting to know the process.

With this in mind, there are going to be certain things to look for when you select your firm:

Compare commission prices to make sure you’re getting a great deal.

Make sure the firm has up-to-date software and is capable of setting up trades quickly and reliably to make sure you get those trades you want at the best prices.

Check out the hours of service to ensure they are compatible with your needs. In these days of online firms, you could be dealing with a firm that’s across the ocean from the markets you have an interest in, or you might find that a firm only makes its reps available for the length of the working day, which might not suit your timing.

Speak personally with the reps at the firm, as these are the people who are going to help you during the process of setting up your strategy. You want someone personable and knowledgeable – and, most importantly, who speaks in terms that you find easy to comprehend.

Take a look at the additional services the firm supplies. Many will offer learning materials, guides, and even classes or webinars to help you hone your strategies. Even if you feel that you know all you need to know already, there’s no harm in a refresher course or a little nugget of inspiration every once in a while.

Once you select a firm, you’ll then need to consider signing a margin agreement with that firm. This agreement allows you to borrow money from the firm to purchase your stocks, which is known as buying on margin.

Understandably, your brokerage firm is not going to allow you to do that if you don’t have the financial status to pay them back. They will, therefore, run a credit check on you and ask you for information about your resources and knowledge.

A margin account is not a necessity for options trading – you don’t use margin to purchase an option because it must be paid for in full. However, it can be useful as you graduate to more advanced strategies – in some cases, it will be obligatory. If you opt to sign a margin agreement, talk it through thoroughly with the firm as there are certain restrictions on the type of money you can use that may apply to you.

Next, you’ll need to sign an options agreement – and, this time, it’s an obligatory step. This agreement is designed to figure out how much you know about options and how much experience you have of trading them. It also aims to ensure that you are aware of the risks you take by trading and make sure that you are financially able to handle those risks.

By ascertaining these things, your firm can determine what level of options trading you should be aiming for. It will, therefore, approve your trading level, of which there are five:

Level 1: You may sell covered calls.

Level 2: You may buy calls and puts and also buy strangles, straddles, and collars. You may also sell puts that are covered by cash and by options on exchange-traded funds and indexes.

Level 3: You may utilize credit and debit spreads.

Level 4: You may sell naked puts, straddles, and strangles.

Level 5: You may sell naked indexes and index spreads.

Don’t worry if you’re not sure yet what each of these things means – you will be by the time you finish reading this book. For now, all you need to be aware of is that your firm will determine for you which level you should be at. As a beginner, don’t be surprised if you only reach the first two levels.

Once you’ve signed the agreement, you’ll be handed a booklet that contains a mine of information about risks and rewards within options trading. Right now, if you were to read that booklet, it would seem to be in a foreign language. By the time you finish this crash course, it will be a lot more decipherable – and it’s very important for your success that you do read it.

Finally, your firm will present you with a standardized option contract. It’s the same for every trader, which means you stand the same chance of success as every other person out there in the options market.

By trading an option, you are entering into a legal agreement that is insured by the Options Clearing Corporation, which guarantees the contract will be honored in full. Make sure you read that contract to be aware of not only the rights you have as a trader but also the obligations you must follow in the same role.

Congratulations, you have an options account. This is the conduit through which you will create and implement your strategies and begin your adventure in options trading.

Chapter 2: Mindset and Secrets of a Trader

Options Trader Mindset

Options trading is most suitable for a certain personality type and mindset. But if you are intrigued by the concept of options, but simply have not had a chance to develop the correct mindset before, there are a few tips that we can rely on to get in the right frame of mind.

You Can Weather the Storm

Options prices can move a lot throughout short periods. So, someone who likes to see their money protected and not lose any is not going to be suitable for options trading. Now, we all want to come out ahead, so I am not saying that you have to be happy about losing money to be an options trader.

What you have to be willing to do is calmly observe your options losing money, and then be ready to stick it out to see gains return in the future. This is akin to riding a real roller coaster, but it is a financial roller coaster. Options do not slowly appreciate the way a Warren Buffett investor would hope to see. Options move big on a percentage basis, and they move fast.

If you are trading multiple contracts at once, you might see yourself losing $500 and then earning $500 over a matter of a few hours. In this sense, although most options traders are not day traders technically speaking, you will be better off if you have a little bit of a day trading mindset.

You Don’t Make Emotional Decisions

Since options are, by their nature, volatile, and very volatile for many stocks, coming to options trading and being emotional about it is not a good way to approach your trading. If you are emotional, you are going to exit your trades at the wrong time in 75% of cases. You don’t want to make any sudden moves when it comes to trading options. As we have said, you should have a trading plan with rules on exiting your positions, stick to those rules and you should be fine.

Be a Little Bit Math-Oriented

To understand options trading and be successful, you cannot be shy about numbers. Options trading is a numbers game. That doesn’t mean you have to drive over to the nearest university and get a statistics degree.

But if you do understand probability and statistics, you are going to be a better options trader. Frankly, it's hard to see how you can be a good options trader without having a mind for numbers. Some math is at the core of options trading and you cannot get around it.

You Are

Reviews for Options Trading Crash Course

[Matías Benjamín · Rating: 5 out of 5 stars]

This explains options in a very easy to understand way. It goes on to also identify the most common strategies and how and when you would want to use them. This book can be read in one sitting and your new knowledge can be applied immediately!

[Crisólogo Torres · Rating: 5 out of 5 stars]

It’s so easy for beginners to get overwhelmed by information when learning about the market. This book was straight to the point of trading options. It was easy to read. I didn’t feel like I was wading through a sea of info. I really enjoyed it.