What are some common mistakes people make when trading stock options?
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WE WANT YOU TO WIN AT OPTIONS TRADING
Everything about our site is designed around this primary goal.
This site does its job when through education, timing, and community you make a 10-bagger options trade and can't wait to tell the world what you just did.
Our rock star trading experts call out their personal trades through the OM live chatroom, private Twitter feed, and SMS alerts every day during market hours.
Trading alongside seasoned and successful traders provides an essential edge toward making better trades.
We have a massive library of stock options training videos, tons of blog posts, regular webinars, and helpful discussion groups.
Our community has grown over the years because of the success of our members, and we want you to be a part of it.
At Option Millionaires, We Make Better Traders!
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Getting Started With Options
Getting Started With Options? Here's How!
If YOU are a new trader, this is what you need to do to get started Today:
- Study, Study, Study: Go to CBOE Options Education Center or Investipedia OR Investipedia Options University and start studying the tutorials. You will need to log in with a signon at CBOE although it is free. Investopedia tutorials are completely free with NO sign on required.
- Memorize Basic Terminology: Bookmark and start learning these Options Terms. You will want to save this link as a great "dictionary" for options trading. Obviously you wont need 90% of this, but its there if you ever need to look up a definition. We STRONGLY suggest that you take a full week to learn the terms and nomenclature of Options trading.
- Sign Up for Level 1 and Level 2: With your existing broker, sign up for level 1 and level 2 Options Trading. At this point this is ALL you need! If you have an Ameritrade account, you can get TOS for free. TOS is a one stop site for ANYTHING pertaining to options, however because of that it can be a bandwidth killer and is slow and cumbersome at times. Diamond Members of OM, we have three separate TOS videos available under the Diamond Training Video Library.
- Look for a Virtual or PaperTrading Options Site: We highly recommend OptionsHouse.com or ThinkOrSwim. If you have an Ameritrade account, you can get TOS for free. TOS is a one stop site for ANYTHING pertaining to options, however because of that it can be a bandwidth killer and is slow and cumbersome at times.
- Start Small: We highly recommend that you begin trading options with a small CASH account of $1000-$1500 dollars. If you use your existing brokerage account and that account is a margin account (Under $25,000) you WILL be hit with the Pattern Day Trader (PDT) Rule so just DONT DO IT. EITHER change your account to a CASH account OR open up another brokerage account with an Options broker and channel $1000 into the new account.
- Once you have done all the above you are now ready to begin Paper Trading which we will discuss in the next chapter!
As you can see, getting started with options requires a little effort on your part. But the potential reward is well worth your time and effort!
Stock Options Training Packages
Beginner
STOCK OPTIONS 101
For Free Registered Bronze Members and Above
You simply *must* have a basic understanding of options before using real money to start trading.
Once you digest these videos that give a very clear overview of what stock options are all about, set up a paper-trading account and join the experienced options traders in LIVE CHAT to watch and learn from their trades before making your own.
Included Videos
- Beginner Options - With UPB
- Options for Dummies - With UPB
- Options Terminology - With Chris D
- Buying Calls & Puts - With Chris D
- What Are Options? - With Chris D
Intermediate
TECHNICAL ANALYSIS SERIES
For Gold Members and Above
First things first: technical analysis is not an "End all, Be all!" Technical analysis is simply another useful tool in the tool-belt of the successful trader. That being said, technical analysis can certainly give one an advantage to make profitable trades, and it is for this reason we proudly offer our series on the subject. Start digesting these and give yourself the edge to make better trades.
Included Videos
- Cycle Analysis Part 1 - With Chris D
- Cycle Analysis Part 2 - With Chris D
- Moving Averages Part 1 - With Chris D
- Moving Averages Part 2 - With Chris D
- Moving Average Envelopes - With Chris D
- Most Important Overlay - With Chris D
- Introduction to Indicators - With Chris D
- Bollinger Bands - With Chris D
- Parabolic SAR - With Chris D
- Stock Chart Construction - With Chris D
- Candlestick Analysis - With Chris D
- All About Sentiment Analysis - With Chris D
- Price Channels - With Chris D
- Breadth Analysis - With Chris D
Advanced
ADVANCED OPTIONS STRATEGIES
For Diamond Members
Most options traders start out simply buying calls and puts in order to leverage a market timing decision. The biggest % gain trades ever on OM have been out of the money calls or puts, which are very simple level 1 options approval strategies.
But the longer a trader stays in the option trading game, the more likely he is to move away from these two most basic strategies and to delve into strategies that offer unique opportunities. Oftentimes these other strategies are less risky (think: more first and second base hits instead of grandslams).
Included Videos
- Spread Basics - With Chris D
- Credit Spreads - With Chris D
- Collar Spreads - With Chris D
- Calendar Spreads - With Chris D
- Combo Spreads - With Chris D
- Debit Spreads - With Chris D
- Synthetic Spreads - With Chris D
- Covered Versus Uncovered Strategies - With Chris D
- Long Puts - With Chris D
- Long Calls - With Chris D
- Short Puts - With Chris D
- Short Calls - With Chris D
- Covered Calls - With Chris D
- Ratio Spread - With Chris D
- Zig Zag - With Chris D
Trading with Lee
TRADING WITH LEE MALONE
For Diamond Members
Learn to trade spreads with Lee! Lee is a seasoned and successful stock options trader with a proven track record. He began trading large cap stocks in 1984 before online trading was even popular. Lee likes to buy long term options, sell short term options, and enjoys teaching people how to do the same.
NOTE: Most of the strategies he employs require Level 3 options broker approval. In other words, don't start with these videos unless you already have a rock solid basic understanding of stock options.
Included Videos
- Selling Option Premiums
- Think or Swim Platform
- Option Strategies
- Option Strategy Basics
- Option Strategy Basics 2
- Trading Spreads
- Vertical Spreads
- Condors & Other Strategies
- Using Calendar spreads
- Selling Short Term Premiums Against Long Term Positions
- Protecting Winning Positions
- Earnings & Premium Build
- Protecting Yourself During Earnings
- Lowering the Cost of Long Term Plays
- Options Tips & Tricks
- Keeping Costs Low on Earnings
- Holiday Options Trading Strategies
Premium Video Series
Intro
INTRODUCTION TO OPTIONS
No Registration Required
- All About Calls & Puts - With Chris D
- Stock Options Payoff Diagram - With Chris D
- Psychology of Trading Stocks & Options - With Chris D
- Technical Versus Fundamental Analysis - With Chris D
- Free Market and Trade Idea Videos - By JB, UPB, and Chris D (Added to regularly)
Silver Members
- Straddles - With Chris D
- Strangles - With Chris D
- Types of Options - With Chris D
- What is a Premium & How is It Determined? - With Chris D
- Squeeze Plays - With Chris D
- The Options Edge Part 1 - With Chris D
- The Options Edge Part 2 - With Chris D
- The Options Edge Part 3 - With Chris D
- Silver Market and Trade Idea Videos - By JB, UPB, and Chris D (Regularly Updated)
Gold Members
- Top 5 Stocks in 2015 - With JB
- Options Price Patterns - With Chris D
- Top Three Bullish Strategies - With Chris D
- Top Three Bearish Strategies - With Chris D
- Options Risk Management - With Chris D
- The Dow Restructuring's Impact on Future Performance
- Technical Analysis Series (14 videos)
- Gold Market and Trading Videos - By JB, UPB, Max, and Chris (Added Regularly)
- The Week Ahead Webinars
Diamond Members
- What Are Currencies - With JB
- Hedging Winning Bets - With Chris D
- Linear Regression Trading - With Chris D
- The Secret to Getting An Edge With Optioins - With Chris D
- Lambd, Lambda, Lambda: Explaining the Option Greeks - With Chris D
- The Art of Buying the Dip - With Chris D
- Think or Swim Part 1 - With UPB
- Think or Swim Part 2 - With UPB
- Think or Swim for Beginners - With UPB
- Interest Rate Breakouts - With Chris D
- Introduction to Binary Options - With Max Ganik
- Playing Long Term Picks - With Max Ganik
- Advanced Options Strategies Series (15 videos)
- Trading With Lee Malone Series (17 videos)
- All Live Event Archives