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Course Content
Options Fundamentals
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Call and Put Options Explained
Options Pricing and Greeks
Exercise and Assignment Process
Basic Options Strategies
In 2026, the most successful retail traders have moved away from "gambling" on high-leverage options and instead use Basic Options Strategies to create consistent cash flow and protect their existing portfolios.Here are the four essential strategies that form the foundation of a professional options toolkit.1. Covered Call (The Income Generator)This is the most popular strategy in 2026 for long-term investors. You sell a call option against shares you already own.Setup: Own 100 shares of a stock + Sell 1 Out-of-the-Money (OTM) Call.The Goal: To collect the Premium (cash) from the buyer while waiting for the stock to rise.The Outcome:Stock stays flat/down: You keep the shares and the cash.Stock hits the Strike: you sell your shares at a profit and keep the cash.Best For: Generating "synthetic dividends" on stocks you plan to hold anyway.2. Cash-Secured Put (The "Buy at a Discount" Strategy)Instead of buying a stock at the current market price, you get paid to wait for a better price.Setup: Have enough cash to buy 100 shares + Sell 1 OTM Put.The Goal: To get paid a premium to commit to buying a stock at a lower price (Strike Price).The Outcome:Stock stays above Strike: You keep the cash and try again next week.Stock drops below Strike: You are "assigned" the shares at the lower price you wanted, and your effective cost is even lower because of the premium you kept.3. Long Call & Long Put (The Directional Bets)These are the simplest forms of options trading, used to profit from a specific price move without owning the underlying asset.Long Call: You buy a call because you believe the price will go up significantly. It offers unlimited profit potential with limited risk (the premium paid).Long Put: You buy a put because you believe the price will go down. This is often used as "Insurance" to protect a portfolio during a market crash.4. Strategy Comparison TableStrategyMarket SentimentPrimary GoalRisk ProfileCovered CallNeutral to Slightly BullishIncome GenerationMedium (Stock can still fall)Cash-Secured PutNeutral to Slightly BullishBuy Stock CheaperMedium (Stock can still fall)Long CallAggressively BullishLeverage / ProfitLow (Only lose premium)Long PutAggressively BearishProfit / ProtectionLow (Only lose premium)5. The "Wheel" Strategy (The 2026 Professional Workflow)Many 2026 traders combine these into a cycle known as The Wheel:Sell Cash-Secured Puts until you are assigned shares.Once you own the shares, sell Covered Calls until the shares are called away.Repeat. This allows you to collect premiums at every stage of the market cycle.2026 Tactical Note: In today's high-volatility environment, professional traders typically look for 30–45 Days to Expiration (DTE). This provides the best balance between capturing Theta (Time Decay) and giving the trade enough time to work.💡 Student ExercisePick a "Blue Chip" stock (like Apple or Tesla). Look at the options chain for 30 days from now.How much cash would you receive today for selling a Covered Call 5% above the current price?If you did this every month, what would your "annual yield" be from premiums alone?
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Covered Calls and Cash-Secured Puts
Long Calls and Puts
Options vs Stock Trading
Advanced Strategy Combinations
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Spreads and Straddles
Iron Condors and Butterflies
Calendar and Diagonal Spreads
Risk Management and Psychology
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Position Sizing for Options
Managing Winners and Losers
Avoiding Common Options Mistakes
Course Overview: Options Trading Masterclass

In 2026, Long Calls and Long Puts remain the most popular entry points for traders looking to profit from market volatility. Unlike “selling” options to collect income, “buying” options (going long) allows you to control a large amount of an asset for a relatively small upfront cost.

1. The Long Call: The Bullish Lever

Buying a Long Call gives you the right to buy 100 shares of a stock at a specific price (Strike Price) before a certain date (Expiration).

  • When to use it: You are highly confident that an asset’s price will rise significantly within a specific timeframe.

  • The Power of Leverage: Instead of spending $10,000 to buy shares, you might spend $300 on a call option. If the stock jumps 10%, your $300 could grow by 100% or more.

  • Risk: Your maximum loss is limited to the Premium (the price you paid for the option). If the stock doesn’t hit your strike price, the option expires worthless.

2. The Long Put: The Bearish Shield

Buying a Long Put gives you the right to sell 100 shares at the Strike Price.

  • When to use it: 1. Speculation: You believe a stock is overvalued and will crash.

    2. Protection (Hedging): You own the stock and want “insurance” in case the market drops.

  • The Advantage: Unlike “shorting” a stock, where your potential losses are infinite if the stock keeps rising, a Long Put limits your loss strictly to the premium paid.

  • Risk: If the stock stays flat or goes up, the put expires worthless.

3. Comparison: Buying the Move

Feature Long Call Long Put
Market Sentiment Bullish (Price Up) Bearish (Price Down)
Max Loss Premium Paid Premium Paid
Max Profit Theoretically Unlimited Massive (until price hits $0)
Enemy Theta (Time Decay) Theta (Time Decay)

4. The “Long” Strategy Pitfall: Time Decay

In the 2026 market, many new traders lose money on Long Calls/Puts even when they are “right” about the direction. This is due to Theta.

An option is a “wasting asset.” Every day you hold a Long Call or Put, its value slowly leaks away. To win with a “Long” strategy, you need the stock to move fast enough and far enough to outpace the daily cost of holding the contract.

5. Strategic Selection in 2026

To increase your success rate this year, professional traders follow these two rules:

I. Buy “In-The-Money” (ITM)

Instead of buying cheap, “lottery ticket” options far away from the current price, buy options that already have Intrinsic Value (a Delta of 0.70 or higher). These move more like the actual stock and are less affected by time decay.

II. Buy More Time

Avoid “Daily” or “Weekly” options if you are a beginner. In 2026, buying 30–90 days of time gives your trade a buffer to survive temporary market dips.

💡 Tactical Exercise

Imagine Bitcoin is at $100,000.

  1. Bullish: You buy a $105,000 Call for $2,000. BTC must hit $107,000 for you to break even (Strike + Premium).

  2. Bearish: You buy a $95,000 Put for $2,000. BTC must fall below $93,000 for you to break even (Strike – Premium).

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