There are many options trading courses that offer some level of free education, but they're often limited. With Option Alpha, you can expect the courses to be expert grade as it's operated by Kirk Du Plessis, a former investment banker and analyst. In addition to operating Options Alpha, he consults with hedge funds specializing in options strategies.

There are less expensive options trading courses on this list, but few offer the end-to-end quality of organized instruction, industry reputation, live training, value-add resources, and close support that Warrior Trading provides, making it our choice as the best comprehensive course offering. Warrior Trading offers everything from penny stock trading to day trading in an IRA.

Its options trading course receives the same level of treatment and support as its other highly rated courses, including extensive instruction, access to a live trading chatroom, and the use of a real-time trading simulator. That's why we chose Warrior Trading as the best options trading course for comprehensive offering in an options trading course.

Since its founding in , Warrior Trading has earned a reputation as one of the top trading schools, with more than , subscribers.

With its extensive educational resources, world-class instructors, highly structured curriculums, live events, group mentoring, and interactive chat rooms, Warrior Trading seems more like a university. That seems like a lot of money, but students get everything they need to launch a successful trading career, including 15 chapters of content, access to the live trading chat rooms, and use of a real-time trading simulator.

Members can move up to the Warrior Pro Package for a more intensive day course. Warrior Pro students also have access to group mentoring up to six times a week. It all starts with a free three-hour live training webinar open to all comers. That's why we chose Black Box Stocks as the best value in options trading courses.

From the very start, Black Box is all about value—offering a free three-hour live training webinar to new subscribers. You would be hard-pressed to find a better value in an options trading course. Black Box Stocks was founded in by a group of high-caliber traders intent on making their mark in a fast-growing and competitive arena by offering top-tier, value-priced resources and training.

Its process is ideal for beginners who can get a taste of what Black Box offers through a free three-hour live training webinar. Everything you learn is reinforced through participation in a moderator-led trading discord channel where you can watch top traders at work.

While they don't have a traditional chat room, you can use Black Box's fully integrated social media channels to follow, message, or subscribe to other members. The learning curve journey is accelerated using proprietary trading tools available through the Black Box platform, including its Intelligent Options Flow, Heat Map, Scanners, and Advanced Analytics, all designed to generate money-making options strategies for intraday, swing, and scalp trading.

They also have a proprietary real-time options alert system that provides users with trade-worthy strategies. All the options trading courses on this list are excellent at providing comprehensive educational content designed and instructed by some of the best professional options traders.

If that's all you're looking for, your least expensive option is Udemy. Or you could subscribe to Option Alpha to access its extensive course offering for free. If you decide to move further up the learning curve, you can join as a member to gain access to more in-depth trading instruction, coaching, and the tools to start trading.

Regardless of your experience level, you can't go wrong with Simpler Trading. Designed and instructed by renowned trader John Carter, it has the best combination of comprehensive offerings, tools, and resources at reasonable prices. Options are contracts that represent shares of an underlying stock. The contract allows you to buy or sell an underlying stock at a specific price strike price before the contract expires, but you are not obligated to do so. Instead, you can buy or sell the option contract before its expiration.

A call option gives you the right to buy the underlying stock, and a put option allows you to sell an underlying stock. In each case, the value of your option increases when the underlying stock exceeds the strike price call option , or it drops below the strike price put option.

The advantage of trading options instead of the underlying stock is the option price is just a fraction of the underlying stock's price, so the profit potential is much greater.

That's why options can be very volatile instruments. Options traders try to capitalize on that volatility to capture short-term profits on the price movements. They utilize sophisticated trading tools to identify and develop an options strategy that anticipates those price movements. The ultimate objective of a quality options trading course is to have its students achieve self-sufficiency in developing and executing successful options trades.

Assuming you are a novice to options trading, that would mean learning the fundamentals of options trading before advancing into more complex trading strategies.

You would also learn how to effectively manage your financial resources and profits and losses to stay in the game. Risk management is a significant component of a good options trading course. Learning takes place through educational content, often in the form of a video course, and by watching the pros work as they develop, execute, and analyze trades, providing step-by-step commentary along the way.

Most good courses offer trading simulators so you can practice what you learn. You can learn about options trading for free through online resources, including YouTube, where you can find hundreds of videos. However, a significant part of learning to trade options comes from watching professional traders do their thing every day and benefiting from their commentary and analysis.

You also need to be able to apply your knowledge either in a simulated or live environment with the benefit of coaches to guide you through trial and error. Most options trading courses are designed for traders of all experience levels. Some may be more suited for beginners, while others cater more to intermediate and advanced traders.

It's essential to look at courses that match your experience level and budget. You can always start your learning through a free or low-cost course to get more benefit out of a more comprehensive paid course. You could probably buy a call or put option for that amount, but it wouldn't be enough to execute specific trading strategies.

With an initial search of options trading schools, we found dozens of courses spread over 14 pages of search results.

We took a closer look at 15 courses that met our criteria, including track record, instructor experience, learning format, comprehensive resources, mentor or community support, value-add features, and price. We then narrowed the list to the best options trading courses in six categories. The Options Guide.

Day Trading. Company News Markets News Cryptocurrency News Personal Finance News Economic News Government News. Your Money. Personal Finance. Your Practice. Popular Courses. Best Options Trading Courses of Best Overall: Simpler Trading Best for Complete Novices: Udemy Best Low-Cost Option: Bullish Bears Best Free Educational Platform: Option Alpha Best Comprehensive Offering: Warrior Trading Best Value: Black Box Stocks. Best Options Trading Courses Expand.

Best Options Trading Courses. Final Verdict. Compare Providers. Frequently Asked Questions. How Does Options Trading Work? What Do You Learn in a Course?? How Much Money Do Courses Cost? Who Are Courses Best For? How Much Does Options Trading Cost? Best Overall : Simpler Trading. Sign Up Now. Cons Training courses sold separately. Best for Complete Novices : Udemy. Pros Global leader in financial education courses Courses taught by successful traders Extensive course selection.

Cons No chat rooms No coaching. Best Low-Cost Option : Bullish Bears. Pros 7-day free trial Low-cost access to comprehensive training resources "Social club" environment Live-stream screen share mentoring Resources for all skill levels. Cons Few online reviews. These days, many investors are choosing to use a more active investment style in order to try and make more immediate returns. Thanks to the range of online brokers that enable investors to make transactions on the stock exchanges with just a few clicks of their mouse, it's relatively straightforward for investors to be more active if they wish to.

There are many people that trade online on either a part time or a full time basis; buying and selling regularly to try and take advantage of shorter term price fluctuations and often holding on to their purchases for just a few weeks or days, or even just a couple of hours. There are plenty of financial instruments that can be actively traded. Options, in particular have proved to be very popular among traders and options trading is becoming more and more common.

On this page we have provided some useful information on what is involved in options trading and how it works. In very simple terms options trading involves buying and selling options contracts on the public exchanges and, broadly speaking, it's very similar to stock trading. Whereas stock traders aim to make profits through buying stocks and selling them at a higher price, options traders can make profits through buying options contracts and selling them at a higher price.

Also, in the same way that stock traders can take a short position on stock that they believe will go down in value, options traders can do the same with options contracts. In practice however, this form of trading is far more versatile than stock trading. For one thing, the fact that options contracts can be based on wide variety of underlying securities means that there is plenty of scope when it comes to deciding how and where to invest.

Traders can use options to speculate on the price movement of individual stocks, indices, foreign currencies, and commodities among other things and this obviously presents far more opportunities for potential profits. The real versatility, though, is in the various options types that can be traded and the range of different orders that can be placed.

When trading stocks you basically have two main ways of making money, through taking either a long position or a short position on a specific stock. If you expected a particular stock to go up in value, then you would take a long position by buying that stock with a view to selling it later at a higher price. If you expected a particular stock to go down in value, then you would take a short position by short selling that stock with a hope to buying it back later at a lower price.

In options trading, there's more choice in the way trades can be executed and many more ways to make money. It should be made clear that options trading is a much more complicated subject than stock trading and the whole concept of what is involved can seem very daunting to beginners. There is certainly a lot you should learn before you actually get started and invest your money.

With that being said, however, most of the fundamentals aren't actually that difficult to comprehend. Once you have grasped the basics, it becomes much easier to understand exactly what options trading is all about. Buying an options contract is in practice no different to buying stock. You are basically taking a long position on that option, expecting it to go up in value. You can buy options contracts by simply choosing exactly what you wish to buy and how many, and then placing a buy to open order with a broker.

This order was named as such because you are opening a position through buying options. If your options do go up in value, then you can either sell them or exercise your option depending on what suits you best.

We provide more information on selling and exercising options later. One of the big advantages of options contracts is that you can buy them in situations when you expect the underlying asset to go up in value and also in situations when you expect the underlying asset to go down. If you were expecting an underlying asset to go up in value, then you would buy call options, which gives you the right to buy the underlying asset at a fixed price. If you were expecting an underlying asset to go down in value, then you would buy put options, which gives you the right to sell the underlying asset at a fixed price.

This is just one example of the flexibility on these contracts; there are several more. If you have previously opened a short position on options contracts by writing them, then you can also buy those contracts back to close that position. To close a position by buying contracts you would place a buy to close order with your broker. There are basically two ways in which you can sell options contracts. First, if you have previously bought contracts and wish to realize your profits, or cut your losses, then you would sell them by placing a sell to close order.

The order is named as such because you are closing your position by selling options contracts. You would usually use that order if the options you owned had gone up in value and you wanted to take your profits at that point, or if the options you owned had fallen in value and you wanted to exit your position before incurring any other losses.

When most people think of investment, they think of buying stocks on the stock market, and many are probably completely unaware of terms like options trading. Buying stocks and holding on to them with a view to making long term gains is after all, one of the more common investment strategies.

It's also a perfectly sensible to way invest, providing you have some idea about which stocks you should be buying or use a broker that can offer you advice and guidance on such matters.

These days, many investors are choosing to use a more active investment style in order to try and make more immediate returns. Thanks to the range of online brokers that enable investors to make transactions on the stock exchanges with just a few clicks of their mouse, it's relatively straightforward for investors to be more active if they wish to.

There are many people that trade online on either a part time or a full time basis; buying and selling regularly to try and take advantage of shorter term price fluctuations and often holding on to their purchases for just a few weeks or days, or even just a couple of hours. There are plenty of financial instruments that can be actively traded.

Options, in particular have proved to be very popular among traders and options trading is becoming more and more common. On this page we have provided some useful information on what is involved in options trading and how it works.

In very simple terms options trading involves buying and selling options contracts on the public exchanges and, broadly speaking, it's very similar to stock trading. Whereas stock traders aim to make profits through buying stocks and selling them at a higher price, options traders can make profits through buying options contracts and selling them at a higher price. Also, in the same way that stock traders can take a short position on stock that they believe will go down in value, options traders can do the same with options contracts.

In practice however, this form of trading is far more versatile than stock trading. For one thing, the fact that options contracts can be based on wide variety of underlying securities means that there is plenty of scope when it comes to deciding how and where to invest. Traders can use options to speculate on the price movement of individual stocks, indices, foreign currencies, and commodities among other things and this obviously presents far more opportunities for potential profits.

The real versatility, though, is in the various options types that can be traded and the range of different orders that can be placed.

When trading stocks you basically have two main ways of making money, through taking either a long position or a short position on a specific stock. If you expected a particular stock to go up in value, then you would take a long position by buying that stock with a view to selling it later at a higher price. If you expected a particular stock to go down in value, then you would take a short position by short selling that stock with a hope to buying it back later at a lower price.

In options trading, there's more choice in the way trades can be executed and many more ways to make money. It should be made clear that options trading is a much more complicated subject than stock trading and the whole concept of what is involved can seem very daunting to beginners. There is certainly a lot you should learn before you actually get started and invest your money. With that being said, however, most of the fundamentals aren't actually that difficult to comprehend.

Once you have grasped the basics, it becomes much easier to understand exactly what options trading is all about. Buying an options contract is in practice no different to buying stock.

You are basically taking a long position on that option, expecting it to go up in value. You can buy options contracts by simply choosing exactly what you wish to buy and how many, and then placing a buy to open order with a broker.

This order was named as such because you are opening a position through buying options. If your options do go up in value, then you can either sell them or exercise your option depending on what suits you best. We provide more information on selling and exercising options later. One of the big advantages of options contracts is that you can buy them in situations when you expect the underlying asset to go up in value and also in situations when you expect the underlying asset to go down.

If you were expecting an underlying asset to go up in value, then you would buy call options, which gives you the right to buy the underlying asset at a fixed price. If you were expecting an underlying asset to go down in value, then you would buy put options, which gives you the right to sell the underlying asset at a fixed price.

This is just one example of the flexibility on these contracts; there are several more. If you have previously opened a short position on options contracts by writing them, then you can also buy those contracts back to close that position.

To close a position by buying contracts you would place a buy to close order with your broker. There are basically two ways in which you can sell options contracts. First, if you have previously bought contracts and wish to realize your profits, or cut your losses, then you would sell them by placing a sell to close order.

The order is named as such because you are closing your position by selling options contracts. You would usually use that order if the options you owned had gone up in value and you wanted to take your profits at that point, or if the options you owned had fallen in value and you wanted to exit your position before incurring any other losses. The other way you can sell options is by opening a short position and short selling them. This is also known as writing options, because the process actually involves you writing new contracts to be sold in the market.

When you do this you are taking on the obligation in the contract i. if the holder chooses to exercise their option then you would have to sell them the underlying security at the strike price if a call option or buy the underlying security from them at the strike price if a put option. Writing options is done by using the sell to open order, and you would receive a payment at the time of placing such an order.

This is generally riskier than trading through buying and then selling, but there are profits to be made if you know what you are doing. You would usually place such an order if you believed the relevant underlying security would not move in such a way that the holder would be able to exercise their option for a profit. For example, if you believed that a particular stock was going to either remain static or fall in value, then you could choose to write and sell call options based on that stock.

You would be liable to potential losses if the stock did go up in value, but if it failed to do so by the time the options expired you would keep the payment you received for writing them. Options traders tend to make their profits through the buying, selling, and writing of options rather than ever actually exercising them. However, depending on the strategies you are using and the reasons you have bought certain contracts, there may be occasions when you choose to exercise your options to buy or sell the underlying security.

The simple fact that you can potentially make money out of exercising as well as buying and selling them further serves to illustrate just how much flexibility and versatility this form of trading offers. What really makes trading options such an interesting way to invest is the ability to create options spreads. You can certainly make money trading by buying options and then selling them if you make a profit, but it's the spreads that are the seriously powerful tools in trading.

A spread is quite simply when you enter a position on two or more options contracts based on the same underlying security; for example, buying options on a specific stock and also writing contracts on the same stock. There are many different types of spreads that you can create, and they can be used for many different reasons. Most commonly, they are used to either limit the risk involved with taking a position or reducing the financial outlay required with taking a position.

Most options trading strategies involve the use of spreads. Some strategies can be very complicated, but there are also a number of fairly basic strategies that are easy to understand.

You can read more about all the different types of spreads here. There are actually a number of benefits this form of trading offers, plus the versatility that we have referred to above. It's continuing to grow in popularity, not just with professional traders but also with more casual traders as well. To find out just what it is that makes it so appealing, please read the next page in this section — Why Trade Options?

Home Glossary of Terms History of Options Trading Introduction to Options Trading Definition of a Contract What is Options Trading? What is Options Trading? Section Contents Quick Links. Recommended Options Brokers. What Does Options Trading Involve? Below we explain in more detail all the various processes involved. Buying Options Buying an options contract is in practice no different to buying stock. Exercising Options Options traders tend to make their profits through the buying, selling, and writing of options rather than ever actually exercising them.

Options Spreads What really makes trading options such an interesting way to invest is the ability to create options spreads. Benefits of Trading Options There are actually a number of benefits this form of trading offers, plus the versatility that we have referred to above. org - All Right Reserved. Read Review Visit Broker.

Best Comprehensive Offering : Warrior Trading. Time value decay is minimal for a relatively long period because the expiration date is a long time away. We also reference original research from other reputable publishers where appropriate. The more likely something is to occur, the more expensive an option that profits from that event would be. Intrinsic value is the in-the-money amount of an options contract, which, for a call option, is the amount above the strike price that the stock is trading. This is because the chances of a price move in the underlying stock diminish as we draw closer to expiry.

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