EVERYTHING YOU’VE EVER WANTED TO KNOW ABOUT OPTIONS – Lesson 1

Here is What You Are Going to Knowat the End of Your Classes. How to be an Option Entrepreneur Myths About Options Basics You Have to Know What is an Option? How a Stock and an Option are Linked Why Expiration Dates are Important What is an Option Chain? Stock Market Animals What is a Power Trade? Research – Do Your Homework! How to Open … Continue reading EVERYTHING YOU’VE EVER WANTED TO KNOW ABOUT OPTIONS – Lesson 1

HOW TO BE AN OPTION ENTREPRENEUR – Lesson 2

Making Money Trading Stock Options Online Made Easy Are You an INVESTOR? –SPECULATOR? — TRADER? — BUSINESS OWNER? Please answer the following Multiple Choice Questions: A. Are you an INVESTOR? Yes ____ No ____ A person who commits money to long term securities, properties, etc. for profit. B. Are you a SPECULATOR? Yes ____ No ____ A person who takes large risks in the hope … Continue reading HOW TO BE AN OPTION ENTREPRENEUR – Lesson 2

MYTHS ABOUT OPTIONS – Lesson 3

  OPTION TRADING FOR ROOKIESBe prepared for Raised Eyebrows and Smurks when youShare Your New Entrepreneur Business. Here are theAnswers to Fire Right Back to Every Myth. MYTH: Options are too risky. True ___ False ____ False: You are a thinking, educated Entrepreneur Momand you are not blindfolded. (Busted myth!) MYTH: Options are for professional traders.True ____ False ____ False: Stock Brokers and their commissions … Continue reading MYTHS ABOUT OPTIONS – Lesson 3

BASICS YOU MUST KNOW ABOUT STOCK OPTIONS – Lesson 4

4 THINGS YOU HAVE TO KNOW ! #1 – There are only two types of options: CALL – “going long” – you believe the stock will go up PUT – “taking a short position”-you believe the stock will go down AND With these 2 types (Call and Put) you can only take 2 ACTIONS: BUY ….or ….SELL Question 1. There are two types of options: … Continue reading BASICS YOU MUST KNOW ABOUT STOCK OPTIONS – Lesson 4

WHAT IS A STOCK OPTION? – Lesson 5

OPTION: The right (not the obligation) to buy or sell a SPECIFIC STOCK at a certain PRICE for a limited TIME. ****ONE Option Contract = ONE HUNDRED Shares of Stock**** Question: An Option: 1.___ Obligates you to buy the underlying stock 2.___Has an expiration date. 3.___ Can only be bought. Answer: 2     When you Think the Underlying Stock will go Up. 1. Every … Continue reading WHAT IS A STOCK OPTION? – Lesson 5

HOW A STOCK AND OPTION ARE LINKED – Lesson 6

The option market is the stock market’s central nervous system. How an Option Contract andUnderlying Stock are linked: One Option Contract = 100 Shares of Stock Options are “Derivatives” – meaning they “DERIVE” their value from the underlying stock. An option is just a paper contract.That contract must be LINKED to astock of some company, which is called theUNDERLYING STOCK. Underlying stock: “Without me, you’re … Continue reading HOW A STOCK AND OPTION ARE LINKED – Lesson 6

WHY OPTION EXPIRATION DATES ARE SO IMPORTANT – Lesson 7

Expiration is important because it sets an Open and Close time frame for your options. How many days you have left until an option expires is called Days To Expiration (DTE). Research has found that PREMIUM ENTREPRENEUR traders stand the best chance of profiting with an DTE of 50-120 days. #1. PREMIUM ENTREPRENEURS: A.___have an upscale business B.___place options to move ahead in Monopoly C.___buy … Continue reading WHY OPTION EXPIRATION DATES ARE SO IMPORTANT – Lesson 7

WHAT IS AN OPTION CHAIN? – Lesson 8

THE OPTION CHAIN ROAD MAP An Option Chain is simply a list of a stock’s #1 – option expiration dates, #2 – Calls and Puts, #3 – strike prices, #4 – Bid and Ask premiums, #5 – Volume, #6 – Open Interest, and …. is updated constantly during trading hours. Question #1 – Option Chains: A.___are updated on the 3rd Friday of the month B.___don’t … Continue reading WHAT IS AN OPTION CHAIN? – Lesson 8

BULLS, BEARS and HONEY BADGERS -Lesson 9

STOCK MARKET ANIMALS Are You a BULL or a BEAR ? BULL is an option entrepreneur who believes that themarket or option will rise in value. BEAR is someone who believes the market or option will drop in value. Actually, the Market itself is a fearless Honey Badgerwho doesn’t really care what you think. Question #1: If you are a Bull:A.___You are a pessimist.B.___You are … Continue reading BULLS, BEARS and HONEY BADGERS -Lesson 9

POWER OF THE STOCK OPTION SPREAD – Lesson 10

SPREADS Option strategies come in many flavors:straddles, strangles, butterflies; you name it! You’re going to learn the EASIEST, CHEAPEST, LOW RISK strategy – SPREADS :the Debit Call Spread, a/k/a Long Call Vertical,a/k/a Bull Call Spread. A SPREAD is a position where you SIMULTANEOUSLY buy one Call(or Put)and sell another Call (or Put). There are 3 directions of spreads:Vertical —- Horizontal —– Diagonal   Question #1: … Continue reading POWER OF THE STOCK OPTION SPREAD – Lesson 10