So now that we understand the theoretical part of options, we can start designing trades according to our strategies.
In this Beginner’s Level of the Options Mater Level Cycle, we introduce two basic but powerful directional trades buying calls and Puts.
As we advance to the Intermediary Level, “The Wolf”, we will teach you more sophisticated trades using spreads to play not only directional moves but market neutral and volatility trades.
There are many directional strategies designed for options but the ones will use in this course are intended to speculate;
Before we get into the specifics of choosing the optimal strike price and expiration date, let’s revisit a basic principle on purchasing equity call options.