This course is suitable for investors with some experience of owning and trading securities. We welcome your feedback on this course. An introduction to the basics of option trading. What are options, and who uses them? This module goes through the basic features of options, and explains how they differ from shares. Introduction to options - text version pdf A more detailed look at what is in an option. This module explains the difference between call and put options, and discusses the main features of options traded on ASX, including exercise price, expiry, and exercise style.
How much is an option worth? This module looks at the influences on an option's price. We explain the difference between intrinsic value and time value, and discuss the influence of variables such as volatility and time to expiry.
We also look at the central importance of time decay in option trading. Option pricing - text version pdf A basic guide to the things you need to think about when developing your option strategies. This module discusses some of the differences in approach between share investing and option trading. We explain how you can develop more effective strategies by taking into account volatility and time as well as price movements.
Choosing the right option strategy - text version pdf A look at how you can use options to trade your view that the market will rise.
The bought call gives you leveraged exposure to a share price rise, and enables you to lock in the maximum purchase price for shares. This module discusses potential profits and losses, explains how to choose between the different calls on offer, and looks at your choices once you have bought your call. Profit from a rising share price - text version pdf How can you make money when you think share prices will fall?
This module explains how put options give you the possibility to profit on the way down. We look at the risks and rewards of the bought put, and explain how to choose between the available options. Profit from a falling share price - text version pdf Using options to protect your shares.
Put options enable you to protect your shares from a fall in value without having to sell them. This module explains how you can lock in a minimum sale price for your shares. We explain the benefits and costs of the protective put, and how to put the strategy in place. Protect your shares - text version pdf Shares generally produce little value in flat markets. This module explains how you can write call options to work your portfolio harder.
Writing covered calls generates income in the form of option premiums and can be a profitable strategy in neutral markets. Earn income from your shares - text version pdf Index options allow you to trade the whole market in one transaction.
ASX offers options over three share price indices, giving you broad exposure in one trade. This module explains how you can use index options to get leveraged exposure to a rising or falling market, or to protect a diversified portfolio from a fall in value.
Index options - text version pdf The mechanics of trading options. This module explains how the options market works. We look at how options are traded, cleared and settled, and point out the differences from, and similarities to, share investing. We discuss the role of market makers, explain the process of exercising an option, and give a few pointers on finding a broker. How options are traded - text version pdf Send an email to investor.
Introduction to options An introduction to the basics of option trading. Estimated time to complete: Option pricing How much is an option worth? Choosing the right option strategy A basic guide to the things you need to think about when developing your option strategies. Profit from a rising share price A look at how you can use options to trade your view that the market will rise. Profit from a falling share price How can you make money when you think share prices will fall?
Protect your shares Using options to protect your shares. Earn income from your shares Shares generally produce little value in flat markets. Index options Index options allow you to trade the whole market in one transaction. How options are traded The mechanics of trading options. Related information What is the sharemarket How to buy and sell shares Getting started in shares. Contact us Send an email to investor.More...