Option Trading World
This is an Option Trading tutorial. This tutorial explains option trading from the beginning. It will take you through option trading, step by step. Below some of the lessons are outlined.
| The story of how Farmer Fred invents options to make his life as a farmer easier. | |
| Explains options and option leverage. A more formal introduction to options than Lesson 1 but still intuitive. | |
| Explains a simple but very practical method of visualizing option positions . | |
| Applies the technique of drawing pay-off diagrams to a strategy known as bull spread. | |
| Explains the direction neutral straddle strategy. Also illustrates alternative ways to create the same position as a first look at financial engineering. | |
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Reading option quotes -with examples from commodity option trading |
How to find the most important numbers in published option quotes. |
| Introduction to the Black&Scholes formula and explains why it is useful. | |
| The benefits off writing a trading diary and what to keep in mind. | |
| Links | Links to option trading sites |
