Learn how to trade options online

Options Basics Tutorial.

Nowadays, many investors' portfolios include investments such as mutual funds, stocks and bonds. But the variety of securities you have at your disposal does not end there. Another type of security, known as options, presents a world of opportunity to sophisticated investors who understand both the practical uses and inherent risks associated with this asset class.

The power of options lies in their versatility, and their ability to interact with traditional assets such as individual stocks. They enable you to adapt or adjust your position according to many market situations that may arise. For example, options can be used as an effective hedge against a declining stock market to limit downside losses. Options can be put to use for speculative purposes or to be exceedingly conservative, as you want. Using options is therefore best described as part of a larger strategy of investing.

This functional versatility, however, does not come without its costs. Options are complex securities and can be extremely risky if used improperly. This is why, when trading options with a broker, you'll often come across a disclaimer like the following:

Options involve risks and are not suitable for everyone. Option trading can be speculative in nature and carry substantial risk of loss. Only invest with risk capital.

Options belong to the larger group of securities known as derivatives. This word has come to be associated with excessive risk taking and having the ability crash economies. That perception, however, is broadly overblown. All “derivative” means is that its price is dependent on, or derived from the price of something else. Put this way, wine is a derivative of grapes; ketchup is a derivative of tomatoes. Options are derivatives of financial securities – their value depends on the price of some other asset. That is all derivative means, and there are many different types of securities that fall under the name derivatives, including futures, forwards, swaps (of which there are many types), and mortgage backed securities. In the 2008 crisis, it was mortgage backed securities and a particular type of swap that caused trouble. Options were largely blameless. (See also: 10 Options Strategies To Know .)

Properly knowing how options work, and how to use them appropriately can give you a real advantage in the market. If the speculative nature of options doesn't fit your style, no problem – you can use options without speculating. Even if you decide never to use options, however, it is important to understand how companies that you are investing in use them. Whether it is to hedge the risk of foreign-exchange transactions or to give employees ownership in the form of stock options, most multi-nationals today use options in some form or another.

This tutorial will introduce you to the fundamentals of options. Keep in mind that most options traders have many years of experience, so don't expect to be an expert immediately after reading this tutorial. If you aren't familiar with how the stock market works, you might want to check out the Stock Basics tutorial first.

The "Experts" Claim That Options Trading is Risky Yet Options, When Used Correctly , Can Reduce Overall Investment Risk and Even Provide a Steady Stream of Retirement Income.

When I first learned about options trading I was completely skeptical!

The above headline sounds "too good to be true" . Which is precisely why I created a FREE $3,000 web based options trading course to prove that it is true.

The course will teach you how to make money regardless of the direction of the stock market (up, down, or sideways).

And I FULLY expect you to verify each and every claim in this options course. It's what any prudent investor would do.

So hold your judgement until you verify everything I am saying.

To make things easy for you I made this home page the starting point of the web based options course . To get started, just fill out the form below.

Step 1:  Enter your below. The Transparent Trading Newsletter will give you full access to the course as well as the bonuses. I'll send you daily s to guide you through the course and from time to time I'll send trade alerts so you can see what I trade in real time.

Discover five ways to achieve financial freedom in five years or less. Just enter your to the right (unsubscribe at anytime).

If you prefer to learn on your own, just read the overview below which will give you a big picture overview of the course.

If you properly learn the option trading strategies taught in the course you'll be able to make money regardless of the direction of the stock market (up, down, or sideways).

Trading stock options can be fun and it can also be risky. If you trade the right way the rewards are great, but if you don't you'll lose money (trust me, I know from experience).

However, once you learn the power of put and call options, investing will never be the same again. The versatility and profit potential of options trading is nearly unmatched in the stock market arena.

I even heard Warren Buffet (the world's richest investor) uses stock options.

However, due to the leveraged profit potential, many people are attracted to options trading for the wrong reason.

So if you are one of the many who are looking for "get rich quick" with no work on your part please look elsewhere.

I don't want to teach you until you are clean and off that drug.

I mainly cater to people who are looking to create an additional stream of income so they can spend more time with their family.

Thus, I teach a sensible, low risk, approach to investing. But like anything worthwhile, it's going to take a lot of hard work before you succeed!

The Learning Modules of the FREE Web Based Options Course.

The web based options course will teach you the simple 7 step process I use to trade stock options. For the most effective learning experience, read through each lesson in the exact order as they are listed.

Module 1: Option Basics.

This section goes over the basics of stock options trading. You'll learn what stock options are, and will be taught the concept of how trading stock options can be profitable.

Module 2: Option Value.

Stock options are so unique and understanding how options are valued can be confusing. This learning module teaches you the basic components that give stock options their value.

Module 3: Basic Strategies.

I feel there is no use learning advanced option strategies unless you can make money with the basics, so here I outlined five basic option trading strategies.

Module 4: Stock Charts.

Stock options are derived from stocks so you need at least a basic understanding of how to read stock charts. This section outlines the basic principles of stock chart reading.

Module 5: Technical Indicators.

This is a follow up to the stock chart lesson. It goes over a few basic tools used by traders to help them interpret stock price movement.

Module 6: The 7-step process I use to trade stock options.

This is where all the lessons will be tied together. You'll be walked through the 3-step process of trading (when to enter, when to exit, and how to manage risk and profits).

To get started click on this link and you'll be taken to the first lesson of the course.

Message from Trader Travis: I don't know what has brought you to my page. Maybe you are interested in options to help you reduce the risk of your other stock market holdings.

Maybe you are looking for a way to generate a little additional income for retirement. Or maybe you've just heard about options, you're not sure what they are, and you want a simple step-by-step guide to understanding them and getting started with them.

I have no idea if options are even right for you, but I do promise to show you what has worked for me and the exact steps I've taken to use them to earn additional income, protect my investments, and to experience freedom in my life.

Just enter your best below to claim my  FREE  report:  Five Option Trading Strategies I've Used to Profit In Up, Down, and Sideways Markets.

Along with your  FREE  report, you'll also get my daily s where I share my favorite option trading strategies, examples of the trades I'm currently in, and ways to protect your investments in any market .

Products Created by Trader Travis.

Free Options Course Learning Modules.

Module 1:  Option Basics.

Module 3:  Basic Strategies.

Module 6:  The 7-step process I use to trade stock options.

Copyright В© 2009 - Present. The Options Trading Group, Inc. All rights reserved.

DISCLAIMER: All stock options trading and technical analysis information on this website is for educational purposes only. While it is believed to be accurate, it should not be considered solely reliable for use in making actual investment decisions. This is neither a solicitation nor an offer to Buy/Sell futures or options. Futures and options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this video or on this website. Please read "Characteristics and Risks of Standardized Options" before investing in options. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVERCOMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Online Options Trading: find, open, and manage option trades in 10 minutes.

What's the first thing that comes to mind when I say, " With online options trading you can find, execute, and manage multiple profitable options trades in less than 10 minutes? "

Is it excitement, skepticism, utter disbelief? Are you now judging me without verifying, the claim?

For some people, that may sound a little too good to be true and that's OK. The truth is, results speak louder than words!

Not only is it possible to find, execute and manage profitable trades in less than 10 minutes a day, but my students and I have been doing it with an extremely high success rate for years!

I designed the 10 minute strategy below as a proof of concept exercise. A simple low risk way for you to verify all the claims on this website.

Nothing is more powerful (and thrilling for me as a teacher) than a new student trying what they have learned in this course and seeing results almost instantly.

I've had great results using your blueprint. I've used it in ETF sector option using TT. ETF sectors are a great way to use options leverage to buy at a discount. The blueprint has worked good in the internet portfolio. Options can be very rewarding if you wait for the right trade and don't force it. I risked.

$10,000. In less than 2 hours the position was worth.

$20,000. I closed half to protect capital. Using today's high and low for an example, the remaining position I'm riding for free was worth between $2,700-$30,600 today!

MarketClub Member since 12/21/14.

Travis, thanks for all your input. I bought a call option on TJX (monthly) gained 200%. Thanks. God bless.

MarketClub Member since 7/27/08.

I can't promise you'll succeed. No one can. It's actually safe to assume you will fail. At least that way you won't fall victim to extreme optimism.

The results shown in this course often make online options trading seem easy and it's not!

There are more "crash and burn" options trading stories then there are "rags to riches".

And although I understand that ultimately you want to learn how to earn extra income for yourself and your family…my job is to make sure you learn the right way.

So please do not practice the strategy below unless you fully understand Modules 1-5 (table of contents below).

The stock market isn't going anywhere. If it takes you 6 years longer to become a millionaire then so what, you're still a millionaire.

My recommendation is that you start from Module 1 Lesson 1: explain option trading and go back through the whole course. Grab a piece of paper, take notes, and fully understand the concepts.

Then come back here to paper trade this strategy…

Trading Stock Options.

The great thing about Online options trading is that you can make money whether the stock market is going up, down, or trending sideways.

This is vastly different than some of the traditional forms of investing where your hard earned dollars rise and fall with the overall stock market.

If you recall from Module 1 stock options are contracts that give you the right to buy or sell a stock. Not all stocks have listed options, but the ones that do have numerous options available. These options can be bought, sold, or traded.

Stock options are derivatives. They are derived or come from the existence of stocks. IBM stock options are created for IBM the stock.

Technically speaking, the term derivative refers to how the price of these contracts is derived from the price of the stock. Their value is dependent on the price of the stock it was created for.

Generally speaking, the option's value will rise and fall in sync with the stock price.

One very important point to keep in mind is that stock options mirror the movement and quality of the company stock it represents.

If you trade the stock options of a crap company then those options won't be worth a crap. Not many people will be trading them and they won't have attractive price movement.

Good stocks have good options to trade.

You want to trade high quality options. In order to do this you have to pick good stocks.

How this intimidates most people, because there is no broker researching stocks for you and it's not like they teach you how to find good stocks in school.

You have to do all the research and your success or failure falls squarely on your shoulders.

It's entirely up to you to figure out…

What to trade? When to trade? And how much to risk on your trades?

The good news is I've spent over 15 years trading options and I've finally created what I feel is the absolutely best "proof of concepts exercise" for new traders.

I call it the 10 Minute Options Strategy.

Watch the video below for instructions on how to implement this.

The "10-10-10" Trading Strategy.

Ten minutes to place the trade, ten minutes to manage the trade, and ten minutes to close out the trade.

I want to add value to your life without you paying me a dime. 

The strategy below is a "proof of concept" exercise taught in the Option Profit Formula Success Academy.

Not everyone can afford the Success Academy so the training below allows you to:

Implement the 10 minute strategy. And enroll with your profits.

Or you can simply stop there and never join us. Either way I'm happy as I found a way to add value to your life.

So take a moment to test drive the strategy below. If you find value in the training then I hope to see you inside of our member's area.

The MC 10 Minute Strategy Guide.

I don't want to spend your money for you, but I do highly recommend you at least join Marketclub on a trial basis to practice this strategy.

Don't let any "head trash" get in the way. Use your trading results to determine if you want this software in your bag of trading tricks ( i. e. let the results speak for themselves ).

Personally, the reason I stay with them is because they have helped me earn several thousand dollars in profit over the years. And as a bonus the educational lessons they put out are good too.

However, if you are going to join Marketclub I suggest you wait until after you've watched the video so that you can maximize your trial period.

P. S.  The link to your trial is here:

Message from Trader Travis: I don't know what has brought you to my page. Maybe you are interested in options to help you reduce the risk of your other stock market holdings.

Maybe you are looking for a way to generate a little additional income for retirement. Or maybe you've just heard about options, you're not sure what they are, and you want a simple step-by-step guide to understanding them and getting started with them.

I have no idea if options are even right for you, but I do promise to show you what has worked for me and the exact steps I've taken to use them to earn additional income, protect my investments, and to experience freedom in my life.

Just enter your best below to claim my  FREE  report:  Five Option Trading Strategies I've Used to Profit In Up, Down, and Sideways Markets.

Along with your  FREE  report, you'll also get my daily s where I share my favorite option trading strategies, examples of the trades I'm currently in, and ways to protect your investments in any market .

Products Created by Trader Travis.

Free Options Course Learning Modules.

Module 1:  Option Basics.

Module 3:  Basic Strategies.

Module 6:  The 7-step process I use to trade stock options.

Copyright В© 2009 - Present. The Options Trading Group, Inc. All rights reserved.

DISCLAIMER: All stock options trading and technical analysis information on this website is for educational purposes only. While it is believed to be accurate, it should not be considered solely reliable for use in making actual investment decisions. This is neither a solicitation nor an offer to Buy/Sell futures or options. Futures and options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this video or on this website. Please read "Characteristics and Risks of Standardized Options" before investing in options. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVERCOMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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curve—we do everything we.

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Cold, hard cash for the trades of your choice? It’s yours. In paper money, of course. One of the most robust paper trading platforms available, paperMoney gives you a virtual margin account and a virtual IRA, each funded with $100,000. So you can test out strategies before putting real money on the line. 14.

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Get to know what the pros know. When you subscribe to our affiliate advisory newsletter service TradeWise, that is. Shadow experienced former Chicago Board of Options Exchange ® (CBOE) floor traders to get recommendations for opening, adjusting, and closing option trades based on your strategies. 15.

15 TradeWise Advisors, Inc. and TD Ameritrade, Inc. are separate but affiliated firms. Advisory services are provided exclusively by TradeWise Advisors, Inc. and brokerage services are provided exclusively by TD Ameritrade, Inc. A subscription to TradeWise Advisors will include a monthly fee. Please contact an Option Specialist for more information, including eligibility requirements.

You don’t have to enter the world of trading alone. Get a third-party advisory service on your side. Receive recommendations, learn different strategies, and even have trades placed on your behalf automatically. 16.

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Dive into live, daily Swim Lessons at 11:30 a. m. ET to learn all the ins and outs of thinkorswim from former traders and platform experts. Or take the thinkorswim Plunge every day at 1:30 p. m. ET for platform demos and individual shows geared toward the Trade, Charts, and Analyze tabs. For all the newbies, dip your toes into our Wading Pool webcasts every Monday at 4:30 p. m. ET to start off with the basics.

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What do you get when you mix cool trading tips, option know-hows, and clever photography? A good reason to take a coffee break. Let’s just say our award-winning thinkMoney isn’t your grandma’s magazine.

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