Odds of the Trade

In this video, we cover how the Black-Sholes Formula and other option pricing formulas are all built on expectancy models similarly to the models they use in casinos to forecast win/loss expectancy on each game over millions of plays.   We will dive into the numbers and cover how you can quickly get your win/loss% expectancy and your Reward/Risk payoff.

Intro to Risk Graphs

In Option Trading, understanding your risk, reward and probability is critical to long-term success. In this video, we teach you how to draw risk graphs by hand. We do this with long stock, short stock, long call and long put trading setups. You will learn how to draw them using brokerage technology as well.

Unique Expiration Dates

In the beginning of option trading, expiration date was easy as there was only one expiration date per month, the third Friday of every month.  Over the years, they have added quarterly, monthly, weekly and even daily expirations to heavily trading stocks.   In this sessions, we talk about all the choices and how to recognize the true expiration date of the options you are analyzing

Options Gone Wild

In this video we detail some confusing situations that you can run into when trading options. First, we detail non-standardized option contracts. Where the contract controls more or less than the usual 100 shares of the company stock. Second, we dig into dividend risk to option traders. How the ex-dividend date is critical to avoiding this risk. And how the dividend amount can change the risk/reward you analyzed originally. Finally, we explore what happens when an option is exercised early. Why a panic is NOT the right decision and could dramatically impact your risk/reward/probability mix. This is a video you won’t want to miss!

Creating A Probability Cone

This class will teach you how to build your own probability cone. This is using standard deviation analysis. We teach you the concepts of understanding 1-standard deviation. How the options market prices in all of the “known” events. And how to use the ATM straddle to price in the probability range. While this sounds like an extremely complex subject. We simply this by using concepts you are already familiar with to teach the concepts. For any serious option trader, this is a class you can’t afford to miss!