Advanced Options Concepts - Probability, Greeks, Simulation
Deep dive into Probability, Greek subtleties, and Options simulation. Learn how they affect Option prices and strategies
Description
This course covers three advanced Options concepts - Probability, Advanced Options Greeks analysis and Options Simulation
SECTION I - DEEP DIVE INTO PROBABILITY ANALYSIS
While Probability has been mentioned a few times in previous courses, we take a deep dive in this course. Having a finely tuned probabilistic mindset coupled with good analysis is an absolute must in financial markets. This course shows a few different ways of looking at Probability and how investors can create strategies to put Probability on their side.
SECTION II - DEEP DIVE INTO THE OPTION GREEKS
This course also takes a deep dive into the four Greeks - Delta, Gamma, Theta and Vega. We introduced these concepts in the previous module, but it is time to take their understanding to a new level. The Greeks are the path to putting your strategies on "Auto-pilot". We explain the subtleties of all the Greeks - very cool stuff, put your Math hat on...
What you will master
What is the importance of statistical price modeling in the stock markets
Why is Standard Deviation an important metric
What are the pluses and minuses of statistical modeling
How can we choose strategies using Probability as a signpost
Take your understanding of all the four Greeks to a new level
Master the subtleties of each of the Greeks
Look at option modeling from a mathematical standpoint
SECTION III - OPTIONS ANALYSIS AND SIMULATION
A good trade entry based upon Volume / Chart / Technical analysis sets you up for success from the get-go. But before you put a trade on, you need to perform Options analysis and simulation to understand how your position will behave under a diverse set of market conditions. Once you perform this Options analysis, you can immediately spot your weak points and you're prepared for them. Analysis and Simulation are as important as finding a good trade entry. In this course, we provide a complete roadmap to simulate every possible market condition BEFORE you put the trade on. This kind of analysis may take 30 minutes, but its well worth the time spent.
What you will master
How will your position behave for a + / - 5% move in your stock
Options analysis before you put your trade on
Options simulation to know where your profit zone is
What is the impact of Time decay on your position
What will Implied Volatility changes do to your position
Simulating the effects of two variables on your position
Simulating all three variables
Stress testing your trade
What You Will Learn!
- Master the concept of probability as it applies to Options markets
- Understand the various subtleties of all four Option Greeks
- Put an "edge" into your trades in your favor with these advanced analysis techniques
- Know how your Options position will perform under all conditions BEFORE YOU PUT YOUR TRADE ON.
Who Should Attend!
- People familiar with Options basics like Buying Call Options and Put Options
- Anyone with basic knowledge of Options spreads
- Anyone intending to optimize their credit spreads and other Options strategies