Masterclass on Advanced Options Strategies - TMP

Many stock market participants avoid options trading because they think that trading in options is too complicated. While few enthusiastic traders get lured by the returns offered by options and start trading. In both situations, what is common is the lack of understanding of the topic, which either makes them avoid trading or face losses. 

To put an end to this dilemma, we have designed an options trading course to help you get experiential learning under the guidance of stock market experts.

The objective of this course is to help you become a profitable trader by providing you with the tools & techniques to build your own options trading strategy.

This course will help you first understand the basics of technical analysis, such as the concept of support & resistance, charting patterns, and technical indicators, then take you through a basic understanding of the derivatives markets, including a thorough understanding of futures and options market, various terminologies such as underlying asset, strike price, expiration date and many more and advanced tools or indicators, i.e., put call ratio (PCR), volume and open interest. 

After covering the basics, we will help you understand the advanced strategies in the derivatives market, such as golden bank nifty, delta neutral strategy, gamma hulk, strangle, call spread, put spread, butterfly condor, covered call, protective put & many more, and then implement your knowledge in the real market under expert guidance.

This course is structured as a masterclass that has live sessions, where our primary focus is on live trading sessions to help you get practical hands-on experience with the topic. 

Please find below the topics covered under this course - Masterclass on Advanced Options Strategies:

Topic 1: Introduction to Technical Analysis 

• Basics of Technical Analysis: Technical analysis is one of the essential weapons to succeed in options trading. So, we will start with gaining an in-depth understanding of technical analysis, including basic terminologies, assumptions, theory, and technical principles. Next, we will explore the concept of chart patterns and identify and evaluate various patterns to enhance our understanding of market trends. 

• Understand Charting Patterns: Then we will move on to analyze the various patterns such as head and shoulder top, head and shoulder bottom, symmetrical triangle, ascending triangle, descending triangle, double top and bottom, wedge, flag, pennant, hammer, hanging man, inverted hammer, shooting star, bullish engulfing, bearish engulfing, bullish harami, bearish harami, the morning star, and evening star patterns. These patterns are essential for interpreting market trends and making well-informed decisions based on historical pricing data. By studying these patterns, we can identify the entry and exit levels of the stock.

• Explore the Technical Indicators: We will also know how to spot positive and negative divergence using Relative Strength Index (RSI). Here, you will get an assignment where you have to identify the following chart patterns and trends and share the screenshot of these charts from TradingView.

Topic 2: Introduction to Derivatives

• In-depth understanding of Derivatives: Moving forward, we will understand derivatives and how the equity market differs from the derivatives market. We will explore how the derivatives market works and different types of derivatives instruments such as Forwards, Futures, Options, and Swaps. 

• Basic concept of Futures: In the live session, we will learn more about the futures market and the basic terminologies of the futures, such as standardized contracts, settlement dates, open interest, and many more. We will then learn how to calculate and interpret open interest, as well as how it relates to the price and volume of futures contracts, shedding light on market trends like long build-up, long unwinding, short build-up, and short unwinding, and providing insights into contract nature and market direction. 
• Index F&O v/s Stock F&O: Further, we will differentiate between index and stock futures and options while learning how to extract and interpret various inputs of equity, futures, and options contracts using the NSE website and StockEdge App to get valuable information about market sentiment. We will conclude this class by understanding the future pricing methods and the concept of contango and backwardation.

Topic 3: Introduction to Options 

• Gain a comprehensive knowledge of Options: After understanding the working of the derivatives market and everything about futures, we will delve into the basics of option and types of options, such as call and put with an example. We will then move on to learn various terminologies such as underlying asset, strike price, expiration date, option writer, volume, open interest and option chain and understand how to read and analyze the option chain on the NSE website. 
• Understand the Risk-Reward Payoff & Moneyness: Further, we will understand the risk-reward payoff of call & put and build the strategy using Opstra Options. Next, we will delve into the most important concept of option trading, i.e., intrinsic value and time value of the option, so we can describe the moneyness, i.e., ITM (In the money), ATM (At the money) and OTM (Out of the money), as well as how to apply open interest analysis using the NSE website to make informed decisions. 
• Identify the Entry and Exit Levels: As we progress, we have to understand the support and resistance to know the entry and exit from trades so we will learn how to spot resistance from the perspective of option buyer and seller. Additionally, we will understand how to analyze the option contracts by using chart patterns & open interest. 

Topic 4: Option Greeks 

• Analyze the Derivative Contract: Now that we are thorough with the basics, risk-reward payoff, and moneyness, we will understand the difference between American and European option and the concept of cash settlement and delivery settlement. We will then learn how to analyze the derivatives contract with practical implication and go through various tools such as open interest and put call ratio that predicts the market trends and sentiment. 
• Pricing of Option Premium: Further, we will delve into the pricing of option premiums and understand the factors that affect the pricing, such as underlying price, strike price, expiration date, implied volatility, and interest rates. 

• Concept of Option Greeks: Option Greeks act as a sword and shield in option trading as it provides valuable insights into how changes in various factors can impact the value of option and help to make informed decisions and manage risk effectively. So we'll then discuss the concept of option Greeks and illustrate the intricate roles that delta, gamma, vega, theta, and rho play in determining premium by analyzing these Greeks.
• Understand Volatility & Options Trading Strategies: Furthermore, we will understand how to calculate historical volatility, the distributive curve of vega, implied volatility, and their relationship with the Volatility Index (VIX) and explore the setup of the golden bank nifty, delta neutral strategy, gamma hulk, strangle using Opstra and Stock Mock. Next, we move on to understanding the delta and gamma with time, theta, and the volatility of the contract and analyzing the IV percentile.  

Topic 5: Options Strategies and Options Repairs and Adjustment, Max Pain Theory and Trading Rules

• Advanced Options Strategies: In this session, we will learn to build various trading strategies by understanding directional bullish & bearish, neutral and advanced strategies such as call spread, put spread, butterfly condor, covered call, protective put, calendar, and many more with their practical application through backtesting using Opstra and Stock Mock. 
• Risk Management & Position Sizing: Furthermore, through the option trading course, we will also understand the criteria to build the following strategies for setting the stock's entry and exit levels and understanding risk management and position sizing. We will then move on to gain an understanding of the put-call parity equation. 
• Options Repairs &Adjustment and Max Pain Theory: Moving forward, we must understand how to adjust the following strategy to get substantial returns in option trading. So in this live session, we will cover strategy repairs, volatility skew, and max pain theory, which are crucial in shaping the right mindset for trade.

To know more, speak to our Program Advisor at +91 9748222555.