As the first letter of the Greek alphabet, alpha is a universal symbol for the beginning, and it’s your starting point for options education. Whether you plan to trade over the short term, invest for the long term, or just supplement your income, you must understand the terms, mechanics, pricing principles, Greeks, and options pricing behavior. Above all, you must understand the risks and tradeoffs with every strategy. The course closes with three powerful strategies you'll have confidence in using immediately: stock replacement, covered calls, and vertical spreads.
Delta, Gamma, Theta, Vega, Rho. They may sound Greek to you now, but they’ll make sense after taking our Greeks class. Option Greeks are intimidating for new traders, but that doesn't make the risks go away. It just means you won't see them hiding in your portfolio. Uncover the mysteries, and you'll uncover new ways to hedge risks--and find profits.
Volatility is associated with emotions, volcanoes, chemicals, or even the temper of Homer Simpson. Stock market volatility means the same thing, but we're talking about the unpredictable or erratic nature of prices. Market volatility creates opportunities because that's what gives an option its value. But it can also create problems, and traders can lose on an option--even if they're correct about the stock's direction.