Module 5     01:40:12

Introduction to Options Trading (Video Series)

  • 1. Introduction to Options 00:08:41

    1.1 – Breaking the Ice The options market makes up for a significant part of the derivative market, particularly India. I will not be exaggerating if I say that nearly 80% of the derivatives tra ..

  • 2. Option Jargons 00:06:56

    2.1 – Decoding the basic jargon Before we proceed into the depth of how Option trading works let us decode a few basic option jargons. Discussing these jargons at this stage will not only streng ..

  • 3. Long Call Payoff and Short Call Trade 00:10:05

    3.1 – Buying call option In the previous videos, we understood the broad context under which it makes sense to buy a call option. This chapter will formally structure our thoughts on the call op ..

  • 4. Put Buy and Put Sell 00:08:30

    4.1 – Put Option I hope by now you are through with the practicalities of a Call option from both the buyers’ and sellers’ perspectives. If you are indeed familiar with the call opti ..

  • 5. Summarizing Call & Put Options 00:05:26

    5.1 – Reasons based on which to buy and sell an Option Over the last few chapters, we have looked at two basic option types, i.e. the ‘Call Option’ and the ‘Put Option’. In this video, w ..

  • 6. Moneyness of option 00:07:10

    6.1 – Moneyness of a Call and Put Option Moneyness of an option is a classification method which classifies each option strike based on how much money a trader is likely to make if he were to ex ..

  • 7. The Option Greeks – Delta 00:11:25

    7.1 – Delta of an Option For an options trade to be successful in the market, several forces need to work in the option trader’s favour. These forces are collectively called ‘The Options Gre ..

  • 8. Gamma 00:05:52

    8.1 – Gamma of an Option The Gamma of an option measures this change in delta for the given change in the underlying. In other words, the Gamma of an option helps us answer this question – “ ..

  • 9. Theta 00:07:39

    9.1 – Theta of an Option All options – both Calls and Puts lose value as the expiration approaches. The Theta or time decay factor is the rate at which an option loses value as time passes. T ..

  • 10. Vega 00:04:43

    10.1 – Vega of an Option So far, in the series, we’ve learned about three option greeks—delta, gamma and theta. In this video, we’ll discuss vega—the fourth and final greek. < ..

  • 11. Options M2M and P&L calculation 00:04:39

    11.1 – Margins for Options trading When trading options, you’ll hear a term called “margin.” It’s nothing but the money required to buy or sell an option. Margin requirem ..

  • 12. Physical settlement of futures and options 00:06:25

    12.1 – Physical settlement of Stock Options Until 2018, all F&O contracts were cash-settled. Meaning, on expiry, there was no need to deliver or take delivery of the underlying shares of the ..

  • 13. Bull Call Spread 00:06:14

    13.1 – Understanding the Bull Call Spread As we’ve learned from the previous videos, if you have a bullish view on a stock, you can buy a call or sell a put. But naked options trades can b ..

  • 14. The Straddle 00:06:27

    14.1  – Understanding Delta neutral Option Strategies As a trader, you’ll have plenty of trades where you do a lot of homework and have the conviction that a trade will work, but it goes ..