Option Trading Seminar Providers
How to Find Good Options Trading Education-Online and off?
Caveat Emptor–
Option Seminars can be great, but please be careful starting out.
Most option trading seminars simply teach the basic strategies of options trading which anyone can learn for free.
Often they will reference extremely complicated strategies like iron butterflies and iron condos which make the audience go “ooh and aah” yet leave having NO idea how they work or how to do anything except loose money with them.
The KEY to success in options trading is knowing which stock to buy an option on and when.
These courses never address proper stock selection and technique. Therefore success is unlikely.
Options are one of the least understood and riskiest forms of investing. Fortunately there is a tremendous amount of information freely available on the internet from websites, courses, seminars to books and webinars.
Beware of the 0ption trading seminars offered that promise to teach you the secrets of making a fortune trading options. A lot of these trading option seminars cost $2,000 to $4,000 (or more for their “Advanced” seminar) for two to four days. Of course they will lure you into buying their magical software that will turn your computer into an ATM. This software produces countless option trades that will make incredible returns. Rarely is that the case.
Most of these seminars are hyped up motivational get rich quick precisely orchestrated circuses with their magic formula for trading options. They reference multiple examples that could have made 1000%, 2000% or 3000% on a single trade. Selling hopes and dreams. Everyone gets excited and thinks i’ll be buying a private jet next year. The truth is most of these “Guru” are millionaires, but not from trading options, but from their option trading seminar.
Option Basics
An option is a contract which gives the buyer the right, but not the obligation, to buy (in the case of a call option) or sell (in the case of a put option) shares of the underlying security at a specified price (the strike price) on or before a given date (expiration day).
Imagine you see a house that you believe is going to increase in value. With real estate you would have to buy the house and wait. Now imagine you find a stock that you believe will increase in value. Most people just buy the stock. However, an option gives you the ability to buy the house in the future but at the current price. If the house increases in value the option holder can buy the house and profit from the increase in price.
A call option is purchased when you expect the value of the stock to go up.
A put option is purchased when you expect the value of the stock to go down.
Key Points
- Call Options increase in value as the stock to goes up.
- Put Options increase in value as the stock to goes down.
- Option contract represents 100 shares.
- The underlying security of an option can be a stock, a stock market index (Nasdaq, Amex, NYSE), futures contract.
- If the option is not used (exercised) before the expiration date it becomes worthless.
- Option holders do not have rights of stockholders – e.g., voting rights, regular cash or special dividends.
- Option’s expiration is the Saturday following the third Friday of each month.
Options trading is extremely risky and very difficult and should only be attempted after several months of studying and trading stocks. Upwards of 80% of options expire worthless. Which means people lost a lot of money. Add that to the thousands lost on trading seminars and you can see the risk.
Options Seminars here
Options Trading Seminar Sources
www.cboe.com/learncenter/seminars.aspx
www.optionseducation.org/seminars/default.jsp
www.optionstrategist.com/products/seminars/index.html
Option trading seminar resources coming.
© 2010 option trading seminar
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