Advanced Options Concepts - Probability, Greeks, Simulation

Deep dive into Probability, Greek subtleties, and Options simulation. Learn how they affect Option prices and strategies

What you'll learn
Master the concept of probability as it applies to Options markets
Understand the various subtleties of all four Option Greeks
Put an "edge" into your trades in your favor with these advanced analysis techniques
Know how your Options position will perform under all conditions BEFORE YOU PUT YOUR TRADE ON.
Requirements
Basic Options knowledge of Calls and Puts
Basic knowledge of Option Greeks
Description
This course covers three advanced Options concepts - Probability, Advanced Options Greeks analysis and Options SimulationSECTION I - DEEP DIVE INTO PROBABILITY ANALYSISWhile Probability has been mentioned a few times in previous courses, we take a deep dive in this course. Having a finely tuned probabilistic mindset coupled with good analysis is an absolute must in financial markets. This course shows a few different ways of looking at Probability and how investors can create strategies to put Probability on their side. SECTION II - DEEP DIVE INTO THE OPTION GREEKS This course also takes a deep dive into the four Greeks - Delta, Gamma, Theta and Vega. We introduced these concepts in the previous module, but it is time to take their understanding to a new level. The Greeks are the path to putting your strategies on "Auto-pilot". We explain the subtleties of all the Greeks - very cool stuff, put your Math hat on…  What you will master What is the importance of statistical price modeling in the stock marketsWhy is Standard Deviation an important metricWhat are the pluses and minuses of statistical modelingHow can we choose strategies using Probability as a signpostTake your understanding of all the four Greeks to a new levelMaster the subtleties of each of the GreeksLook at option modeling from a mathematical standpoint SECTION III - OPTIONS ANALYSIS AND SIMULATION A good trade entry based upon Volume / Chart / Technical analysis sets you up for success from the get-go. But before you put a trade on, you need to perform Options analysis and simulation to understand how your position will behave under a diverse set of market conditions. Once you perform this Options analysis, you can immediately spot your weak points and you're prepared for them. Analysis and Simulation are as important as finding a good trade entry. In this course, we provide a complete roadmap to simulate every possible market condition BEFORE you put the trade on. This kind of analysis may take 30 minutes, but its well worth the time spent. What you will master How will your position behave for a + / - 5% move in your stockOptions analysis before you put your trade onOptions simulation to know where your profit zone isWhat is the impact of Time decay on your positionWhat will Implied Volatility changes do to your positionSimulating the effects of two variables on your positionSimulating all three variablesStress testing your trade  

Overview

Section 1: Deep Dive into Probability

Lecture 1 Introduction

Lecture 2 Exact Probabilities - Probability of ITM and Probability of Touching

Lecture 3 Standard deviation, Buffer zones and Probability Curves

Section 2: Deep Dive in the Option Greeks - Subtleties of Delta, Gamma, Vega and Theta

Lecture 4 Analyzing the subtleties of Delta, Gamma and Vega for different expiry series

Lecture 5 Analyzing Theta subtleties

Section 3: Options Simulation - The key to understanding your position

Lecture 6 Options Simulation introduction - Why do we need simulation

Lecture 7 Options simulation - Simulating Price, Volatility and Time decay individually

Lecture 8 Options simulation - Simulating Price, Volatility and Time decay collectively

Lecture 9 Options simulation - Calculating Theoretical Price

Lecture 10 CONCLUSION

Lecture 11 BONUS LECTURE - DONT MISS !!

People familiar with Options basics like Buying Call Options and Put Options,Anyone with basic knowledge of Options spreads,Anyone intending to optimize their credit spreads and other Options strategies