Where to get Option education

Discussion in 'General Discussion' started by fibtrader, Dec 3, 2016.

  1. fibtrader

    fibtrader New Member

    I am new to CD and want to thank Tom, Dan, Jim and all the members for presenting outstanding trading education. It is deeply appreciated.
    I want to improve my level of option trading knowledge and request some recommendations on educational courses. It appears that while there are service offered (I am an RTT subscriber), members appear to have experience in multiple strategies: CD mentorship, John Locke's M3 strategy/mentorship, space trip, Tony Sizemore concepts, etc. Where would you suggest I start learning to build a strong foundation in option fundamentals/ (Greeks, second order Greeks, strategies, etc)? I am one of those first born, over-achievers and want to really understand how options work. :) Thank you in advance for your assistance.
  2. Marcas

    Marcas Well-Known Member

    Hi fibtrader,
    imho, it all depends what level of trading/knowledge you are in. For example if you are in low-mid level (whatever it means, but I think that options tradin appeals to you at this point) you may try many ways without committing any serious money to any. Try everything, learn as much as you can and find out what resonates with you. Then, lets call it mid-mid, follow and learn more about 2 to four ways of trading. If you are ok with it then go in depth and donn't worry about levels you are in, just follow your path.
  3. ACS

    ACS Well-Known Member

    Welcome, the CBOE has an education section on their web site that has a full program of basic to advanced courses and a ton of webinars all for free. The Capital Discussions member library has webinars that cover a wide range of topics and John Locke gives a free webinar every Monday morning that covers his strategies. You can watch the recordings if you cannot see the live presentation. That should keep you busy!
    Paul Demers likes this.
  4. Trader G

    Trader G Well-Known Member

  5. Boomer34

    Boomer34 Well-Known Member

    I was in somewhat of a similar place last year to the month! I had a general knowledge of options but nothing like is discussed and modeled here. I was googling an options company that was touting near perfect success, and randomly landed on the CD site here where someone was giving a review of this company. I can say it was the best thing that could have happened! I dropped all my other "trading pursuits" and committed to learning and soaking up as much as I could. I dove into all that was on CD...I listened to every Trading Group 2 webinar, round table presentation, invested time on the Locke website as well as some on Options Tribe. Needless to say, I have come a long way in a year by simply being around and listening. Many have said it, but it does take multiple passes for some of these concepts to "click," and I have seen that firsthand, but it is very encouraging when you start to understand and grasp some of these more advanced concepts. I have now just started putting this into practice and am very much looking forward to the next stage of development.

    So I would encourage you to hang around, listen and read as much as you can, and ask questions. This community has been so helpful in that regard. It is truly a great group of people!
    Paul Demers likes this.
  6. TraderJ

    TraderJ Member

    I've been wondering about this as well. My options knowledge is pretty basic but I want to lean more about BWBs. They seem foundational for the better strategies.

    Random Walk Trading has several courses on BWBs in the $100-$200 range. One of them is an update of the "One Strategy for All Markets" course that apparently popularized BWBs about 10 years ago. Are these worth the time and money, or can you learn enough about BWBs from free videos here and other places? Unfortunately, I can't attend Locke's Monday morning webinars and I don't think he records them.

    Thanks for any feedback.
  7. stevegee58

    stevegee58 Well-Known Member

    I got all my options (and trading in general) education from the internet and paper trading. Even if you took a course of some sort, it's really the screen time of evaluating, placing and managing trades where you do most of your learning.
  8. TraderJ

    TraderJ Member

    Thanks for the feedback, stevegee58. I'm thinking a course may expedite my learning, but I definitely understand your point.
  9. jim

    jim Well-Known Member

    Fibtrader, Boomer34, TraderJ, and all others looking for proper Options education/classes.

    I have heard this request more and more, recently.

    Please understand that it is a ton of work to put together a proper Options curriculum. There is a lot of "Theory" that is required just as a foundation. However, learning all of the "Theory" in the world will just make you more efficient and effective at losing money quicker. There are many, many more "Practical" areas you must learn if you are to become a profitable Options trader.

    I have designed and built a "Financial Derivatives" MBA (Graduate Level) Course and have submitted to two of the local Universities, here in South Florida (University of Miami and Florida Atlantic University). Both U of M and FAU are evaluating my submissions. Currently, I have two other projects on my plate, namely and new Class that I am designing and building with Paul Demers for Capital Discussions and a new "VolVantage" alert service to trade the Volatility ETF's.

    However, after these two projects are completed, I will consider building a proper Option curriculum to be offered, here at Capital Discussions. The earliest that I could possibly get any Options curriculum completed for CD members would be in late Q1, 2017.
    cracru, HRK and Boomer34 like this.
  10. Boomer34

    Boomer34 Well-Known Member

    That would be so great!
    I know the theory is important, but if you are someone who doesn't plan to trade covered calls or any other strategy, but instead want to focus on the type of trades everyone does here at CD, it would be great to see and learn what "theory" is needed form someone currently doing the type of trades you are aspiring to do. Looking forward to it Jim!
  11. TraderJ

    TraderJ Member

    Jim, thanks for the input. As mentioned in my first post, I want to learn more about BWBs since they're foundational to many strategies here. I'm an experienced trader, but my knowledge/experience of options has been the simple stuff: buying options, covered calls and credit spreads. Are there any good resources for learning BWB basics here or if I join the site ($12.95/month)? I know many presentations talk about them, but they often assume you have a working knowledge of BWBs. I'm interested in things like:
    • Basic structure and understanding max gain, loss and breakeven points
    • Ideal conditions for trading them (whether bullish, bearish or neutral)
    • Trade-offs of doing them for credit vs. debit
    • How they behave and how Greeks behave as market moves in different directions
    Thanks in advance if anyone has feedback.
  12. ACS

    ACS Well-Known Member

    Start off by learning all about good old fashioned symmetric butterflies. Then realize that a BWB is nothing more than a symmetric butterfly that is hedged to the upside with an embedded credit spread(s). The same goal can be achieved with a call as in John Locke's Standard M3. There are lots of webinars on these type trades here that you can watch and when you are ready then get a subscription to TOS, ONE or OV and start getting your hands dirty back testing and forward paper trading them. The best education is actual experience placing, adjusting and exiting trades with paper money to start and then small amounts of real.

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