Free Options Trading Entries & Exits Course | Option Alpha

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Summary

Successful options trading is 100% dependent on your ability to find and enter trades that give you an "edge" in the market. We'll review different strategies, option order types including market, limit, and stop orders, while highlighting some key tactics and tips you can use today. Plus, you'll dive into some advanced topics with order entry checklists, when to close trades, rolling mechanics, and how to pin specific high probability trades.

21 lessons

Game of Numbers

Options trading is a game of numbers. To have confidence in a trading strategy you have to understand the long-term expectancy. Probabilities and position sizing are paramount.

7 Step Entry Checklist

Here is a detailed breakdown of Option Alpha's 7 step entry checklist for filtering and entering new options trades.

Strong Liquidity Examples

Liquidity allows option traders to enter and exit trades more easily. Securities with strong liquidity have narrow bid-ask spreads, which saves you money in the long run. Here are some strong liquidity examples.

Picking the Next Direction

It is impossible to predict future movements of a stock. But sometimes it is just as important to identify where a stock might not go. Learn the technical indicators used to anticipate the next direction of a stock.

Scanning for Trades

Scanning for trades is easier than most people believe. Once you know what to look for you can create a strategy for any stock in any market condition.

Option Pricing Table Basics

Option pricing tables display multiple key components of an options contract such as expiration dates and strike prices, and can be customized to fit your trading style.

Setting Up Your Trade Tab

Setting up your trade tab on your broker platform is very simple and we'll show you how to quickly save the settings so that you never have to do it again when you login.

Pinning Your Probability of Profit

Placing high probability trades is actually incredibly easy once you know where to look. In this video tutorial we will help you figure out how to pin your probability of success at any strike price.

Using Delta for Probabilities

Delta can be used to estimate the probability a stock will be in-the-money at expiration. This video demonstrates how to use delta when setting up option strategies.

Buy to Open vs Sell to Open

Buy-to-open (BTO) orders open a new position and require paying a debit. Sell-to-open (STO) orders open a new position and receive credit. The premium paid or collected is applicable to single and multi-leg strategies.

Buy to Close vs Sell to Close

Buy-to-close (BTC) orders pay a debit and close a position that was opened selling options. Sell-to-close (STC) orders receive a credit and close a position that was opened buying options. The premium paid or collected, relative to the opening order, determines your profit or loss on a trade.

Market, Limit, Stop Loss Orders

Learn how to use market orders, limit orders, and stop loss orders when entering and exiting options trades.

5 Types of Contingent Orders

Contingent orders are a great way to place orders in the market if you are not able to watch positions throughout the day. These are the top-5 contingent order types you can use to help automate your options trading.

Limit Orders

Limit orders allow traders to execute their order at a specific price or better. Limit orders are a great way to initiate trades at a price you want an order to fill, and don't require you to watch the market or rush trades.

Market Orders

Market orders are helpful if you want to enter a trade quickly because they immediately execute at the best possible price. However, we don't suggest using market orders when trading, as they may include a wide range of prices, depending on the security’s liquidity.

Limit on Close Orders

Limit on close orders enable you to exit trades for a specific price at the end of the trading day. There are pros and cons to using limit on close orders.

Market on Close Orders

Market on close orders enable you to exit trades at the fair market price when the market is closing. There are pros and cons to using market on close orders.

Advanced Contingent Orders

Advanced contingent orders enable you to trade without having to monitor your positions all the time. Learn to master these orders to simplify opening and closing trades.

Taking Profits Before Expiration

Explore why it's important to take profits before expiration to maximize your win rate and profitability long-term.

Mechanics of Rolling

Rolling is a great strategy to extend a trade's duration long enough to see the probabilities work themselves out. However, sometimes rolling can actually be detrimental to your position overall and increases risk. Learn the mechanics of rolling a position.

Consider Future Events

Having an understanding of possible future events that could affect your position, either favorably or unfavorably, is a key distinction between beginner and advanced trader.

5.0

stars

Nice, basic presentation with important pointers.

Game of Numbers

Kirk Du Plessis

June 7, 2023

The best training program that I have run across. Thank you.

Consider Future Events

Kirk Du Plessis

May 23, 2023

Understanding of the IV.

Scanning for Trades

Kirk Du Plessis

May 23, 2023

FAQs

Are Option Alpha courses free?

Yes, all our options education is 100% free to access. We believe in giving back and educating traders at all levels and have been blazing this trail by offering free education for more than a decade.

Do you offer an onboarding class?

You can find everything you need to get started with bots and automation in our autotrading resources and Help Center.

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Do I need a membership for the education?

No, all our options trading education is 100% free.

Who are these courses intended for?

Option Alpha's free education courses and guided tracks are perfect for new traders looking to learn the basic of options trading, as well as experienced traders that want to better understand more advanced options topics.

What course should I start with?

If you're brand new to options trading, you can follow Option Alpha's courses and tracks from Beginner to Intermediate to Advanced for a guided experience. Each course includes multiple videos covering a wide range of subjects that build off the previous lessons.

What topics are covered in Option Alpha's courses?

Our free courses include more than 160 videos on options trading. Learn the basics of options and key terms, options pricing, multiple strategies for beginner and advanced traders, trade adjustments, portfolio management, and more. Option Alpha's education is designed to help you understand every aspect of options trading with in-depth, easy-to-follow guided videos.

How long do I have access to the course materials?

Our guided videos are always available to you. There is no membership required, and they're always free to access.

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