Introduction to Options Trading: Level 1 – Buying Call Strategies
Course Code: OPT101
Course Description: This course serves as an introduction to options trading, specifically focusing on buying strategies. It is designed for beginners who want to understand the fundamentals of options trading and how to use options as a tool for investment and risk management.
Learning Outcomes: By the end of this course, students will be able to:
- Understand the basics of options contracts and terminology.
- Identify different types of options and their characteristics.
- Analyze market trends and identify potential opportunities for buying options.
- Implement basic buying strategies, such as buying calls and puts, to capitalize on market movements.
- Evaluate the risk and reward profile of option buying strategies.
- Utilize basic options trading platforms to execute trades.
Prerequisites: No prior knowledge of options trading is required. However, basic knowledge of financial markets and trading concepts is beneficial.
Course Structure:
- Introduction to Options Trading
- Overview of options contracts
- Basic terminology (e.g., call options, put options, strike price, expiration date)
- Types of Options
- Understanding call options and put options
- Differences between American and European options
- Market Analysis for Option Buying
- Technical analysis fundamentals
- Identifying trends and patterns
- Buying Strategies
- Buying call options
- Buying put options
- Selecting strike prices and expiration dates
- Risk Management
- Assessing risk and reward
- Setting stop-loss orders
- Executing Trades
- Introduction to Options Trading Platforms
- Placing and managing option orders
- Case Studies and Practice
- Real-life examples of option-buying strategies
- Simulated trading exercises
Teaching Methods: The course will be taught through a combination of lectures, interactive discussions, case studies, and hands-on trading simulations. Real-world examples and practical exercises will be used to reinforce learning.
Assessment Criteria: Students will be assessed based on participation in discussions, completion of assignments, performance in trading simulations, and a final exam covering course concepts.
Required Materials:
- Textbook: “Options Trading 101” by Option Academy
- Access to a computer with an internet connection for trading simulations
Course Policies:
- Attendance is mandatory for all sessions.
- Late assignments may be subject to grade penalties.
- Academic integrity is expected from all students.