Our last blog covered class one of Chris Burgess’ training, The Options Accelerator, which you can read here if you wish. This introductory class taught on the basics of options with calls and puts, and as I have blogged about before, calls and puts are comparable to buying long or short stock trades. However, it is here where Chris breaks away from any previous exposure; I have had to options training in the past. He provides a .pdf called the Ultimate Options Strategy Encyclopedia, which in my opinion, is worth the price of admission. Let me break it down for you and provide some examples directly from the document itself.
The first few pages of the Ultimate Options Strategy Encyclopedia break down the four types of options trades you can make long calls, long puts, short calls, and short puts. I’ve seen this information presented in a few other classes, but Chris provides his students with a simple but informationally packed document with clear and concise data instantly at your fingertips. Download this document, and you do not have to scan class videos again to find the information you need when it comes to what type of trades there are to make in the market. Here is an example of the page layout and provided information as taken from the Long Calls page of the document.
The first part of the page is the bullet points of a long call, such as debit strategy, a bullish trade, how many legs the trade has, and its overall usefulness. The second part of the page is the overview where Chris relays the following: Long Call(s) is a debit strategy that aims to maximize returns on a bullish security while reducing risk. It is a simple strategy that involves a single transaction.
Next is the subsection of when to use it. Here Chris explains that Long Calls is a valuable strategy when a security is expected to move strongly bullish because it has unlimited upside. It makes money if the underlying security goes up but could lose money if the underlying security goes down or sideways.
Next is the subsection on how to trade it. Here Chris explains that a Long Call strategy can be executed in the money for higher Delta and more intrinsic value, at the money for a balance of cost and reward, or out of the money for high ROI but more risk of expiring worthless.
The second column of the page covers a brief trade example, what to look for when taking the Greeks into account on this type of trade, and finally, a breakdown of the Pros and Cons of making a Long Call trade. If that wasn’t enough, Chris does the exact same treatment for over thirty types of options strategies.
There is more information in this one document than I have seen presented in some entire classes, and as I have already stated before in this blog, well worth the price of admission. If you have ever considered in-depth options training, Chris’ Options Accelerator class is a great place to start. He also provides a short three-to-seven-minute video where he reads over each page and adds a few more tidbits for you to consider. Thank you for reading and check back with us soon as I highlight other parts of this class and how it can help you succeed as an options trader.