Many people have heard great things about trading options but were too scared to try due to the lack of a reliable learning process.
We share the best way to learn options trading to help you generate income from trading options.
Contents
Learn the Options Trading Basics
Learning the basics is the first step to mastering options trading. You need to understand that Put and Call options are designed to hedge risks against stock price volatility. Then you also need to know the difference between buying and selling options.
An options trading course should contain the following topics:
- What Are Options?
- How to Calculate Options Prices
- What Is Implied Volatility IV?
- Differences Between IV Rank and IV Percentile
- Know Your Greeks to Manage Risks
- Differences Between Buying and Selling Options
- Popular Options Trading Strategies, Such as Covered Call, Iron Condor
- How to Repair a Losing Options Trade
Apart from learning through the blog articles, you can also watch YouTube videos to increase your options knowledge.
Get To Know the Options Screeners
Stock pickers use software algorithms to speed up the fundamental and technical analyses of stock prices. They help us find bullish and bearish stocks quickly. A few examples of great options screeners:
- Bullish value stock list - find good value investing deals.
- Dividend screener - find high dividend-paying stocks.
- Options scanner - find high IV stocks with a neutral outlook.
- Bullish Put Spread list - find bottomed-out bullish stocks.
- Bearish Call Spread list - find overvalued, bearish stocks.
Start Trading With a Small Account
Once you learn the basics and know your way around the stock pickers, you can open a margin account with a popular trading platform like TD Ameritrade.
It's a good idea to start with a small account to learn by making small trades using your new knowledge. It also helps to learn about managing risks through asset allocation and hedging.
Follow the Trade Alerts and Model After Our Positions
Apart from looking for your own trades, you can also sign up for our real-time trade alerts to follow our entries and exits. Then you can compare your performance with SlashTraders' positions to gain a deeper understanding of how to find great options to trade. You'll also learn to make better investing decisions in the unpredictable stock market.
Follow the most reliable way to learn options trading to speed up your path to profitable trading.
