Learn to trade options in 20 minutes
110: Arbitrage Andy's guide to options trading
This morning we are releasing our highly anticipated intro to options trading guide. We’ve forged a partnership with OptionsSwing, a premier trading and options education service with cutting edge discord services and training resources to give you guys a succinct and straight forward guide to options trading and basics.
There are over 450,000 members of the OptionsSwing Instagram community and over 2,100 subscribers to the company’s premium services aimed at making everyday traders as informed as the elite on Wall Street. They’ve provided us with some resources for all of you that we’ll highlight throughout this guide.
So why options?
We’ve gotten demand from our base of over 17,000 Arb Letter subscribers to cover options because they’re a valuable tool in an investor’s and trader’s tool belt, giving you an edge over most people and allowing for excellent chances to make money if you know how to employ them for speculating and/or hedging your portfolios and positions.
Unlike vanilla equities and other instruments, options offer the everyday investor the chance at outsized/ higher percentage returns with less capital at risk. Because options use leverage, you’re able to potentially make much higher profits than if you were to buy 100 common shares of the same company.
This premium beginner’s guide is perfect for:
People with no experience trading options (students, novices, beginners)
People with some experience seeking to learn more
Those looking for a refresher/review
If you have a good amount of experience trading options this could still be additive — and make sure to share some knowledge in the comments section. We’ve spent a good deal of time summarizing concepts and takeaways from the best resources on the internet to give a straight forward and easy to understand guide on the basics.
You’ll find a myriad of data and articles online covering options trading but the goal here is brevity with comprehensiveness on key points.
The sections we will cover in this comprehensive guide today include:
Background on options
Advantages/risks of using options
How options are valued/priced
Call Options
Put Options
Basic strategies/tips
Some ideas to get started and a list of the best option’s platforms/brokers
We will walk through some examples, provide some resources from us and OptionsSwing, and talk about some of the most important concepts to keep in mind to be a profitable options trader.
With the S&P 500 down nearly 25% this year alone and markets poised for more volatility in the face of seemingly endless rate hikes and macro headwinds, now is the perfect time to learn to trade options so that you can use them effectively to hedge your portfolio, preserve your wealth, profit, and anchor your net worth in turbulent times.
We do deep dives like this 2X a week for our paid subs (cheaper than a Netflix subscription) and put a great amount of time and energy into helping folks broaden and sharpen their financial markets knowledge base with easy to understand guides and commentary.
If you’re up to it, consider a subscription to our paid posts as a premium for a call option on yourself — you also receive access to over 110 archived posts.
The Arb Letter community is comprised of portfolio managers, traders, bankers, salesmen, and others that likely have good amounts of experience in options so this should be a great chance to learn but also an excellent opportunity for our community to bounce ideas off of each other for the coming months in financial markets.
Like Meek Mill and Florida football coach Billy Napier said:
scared money don’t make no money
Let’s get into it.