I spent my whole career on Wall Street advising, trading against and trading with the Top 1% of investors - names like Steve Cohen, Carl Icahn and Warren Buffett, just to name a few. I did this behind the scenes working inside the top investment banks and then ultimately at one of the most successful hedge funds over the last 30 years. Inside my Free Membership area I'm going to teach you how the Top 1% gain their advantage when trading options. It's unlike anything you may have heard before. You will clearly understand it after I teach you... and you won't find it anywhere else!
The industry makes a crucial error when teaching options. They don't provide a framework for the investor, which leaves them guessing later on. Before getting into the details, anyone trying to understand options should know what they are, who uses them, how do people use them to profit, why investors are so confused, where are they confused, and how to be successful using them. This course answers all those questions and more. It helps you establish a strong foundation and sets a clear path for future studies.
It's exciting to have you on board. Before you can start on a journey into options, you must set a fews goals. Find out what you are shooting for, then let's figure out how you will get there.
What's Wrong With Options Education
The options industry spends an enormous amount of money trying to educate the masses on how to trade options. But what if I told you that they’ve made a fundamental mistake from the very beginning? In this lesson, I’ll explain what’s wrong with options education. Specifically, how the industry has missed a key ingredient at the very foundation of your learning process that creates an underlying confusion which prevents you from fully understanding the product.
The Warning Heard By The Top 1%
Have you ever wondered how the biggest and smartest investors always seem to end up making all the money? It’s certainly not by luck. The SMARTEST INVESTORS on the planet win by using one of Wall Street’s most closely guarded secrets. In fact, they even go to great lengths to divert the general public away from this secret.
What are Options?
Investors use options because they are the most important financial tool of our generation. For this reason, every investor, active or passive, should have a clear understanding of the product.
Who Uses Options? A Quick Review of the Players
Options are the most important financial tool of our generation. Unfortunately, they are often avoided by the average investor due to a persistent belief that they are too complicated to understand.
2 Ways to Profit With Options. Choose Wisely!
It's important to distinguish the two distinct ways to trade options for profit: Volatility Trading and Directional Leverage Trading. It's highly likely that you are not a volatility trader, yet the education puts a lot of emphasis on Volatility. See the problem?
4 Areas Where the Top 1% Gain Their Edge?
It's safe to say that the Top 1% trade with an advantage. But what exactly does that mean? If we asked 100 people: "Where do the Top 1% of investors have an advantage?" Most people would give an answer how and where the best in the world get their ideas. And they would be right.
The 3 “Directions” in Options Trading
Stocks are fairly easy to understand. They have two directions - up and down. Options are a bit different. While up and down exist, there’s a third "direction."
5 Requirements to be Successful at Buying Options
The act of buying options is rather simple. Just press a few buttons at your favorite online broker and off you go. But keep in mind that there is a very specific way to buy options that shifts the odds in your favor.
The Options Chain: Why Everyone Gets Confused
There are endless amounts of options tutorials on the market, both free and those that come at a cost. No matter how much time you spend watching these videos, listening to these online "gurus," or even diving into education distributed by the Options Industry, you will end up at the same place as everyone else, beginner or expert, asking the same questions.
2 Options Questions 99% of Investor Can’t Answer
When it comes to using options, the only thing that separates you from the Top 1% of investors are the answers to 2 options questions.
Steve Cohen’s Portfolio: Notice Anything?
The Top 1% of Investors use options with their portfolios in a very specific way. And they have been doing it for 40 years. It’s their secret. It’s their advantage. Here's Steve Cohen's portfolio. Tell me what you see and I will let you know what I see.
So, you think you know options? Just because you read a book, or took a boring course, or (dare I say it) even trade options, doesn’t mean you passed the “Beginner” stage. Some people tell me they’ve watched hundreds of hours of YouTube videos, but when I ask them a simple question they freeze. This isn’t a dig on you or them. It simply says a lot about the available Options Education. Can you meet the challenge?
This challenge does a few things besides determine whether you are a beginner or not. First, it challenges you to think on a higher level. Second, it takes basic concepts that you might have already learned and forces you to make connections. Third, it shows you what great education can do for you in a short amount of time. This simple challenge will have you asking yourself better questions. And that's always a good thing!
The Options Challenge - Answer
Options Education incorporates many different concepts, none of which are extremely difficult. What makes options difficult is how fast they’re introduced and combined to form new ones. From years of experience, I’ve identified 7 key concepts that every investor should understand before tackling options. These core “non-options” concepts are short, simple, but highly effective in facilitating your options educational experience.
Concept #1: Risk Reward
We’ve all heard it: “The greater the Risk, the greater the reward.” But how do you compare the risk reward with options? While we won’t dive too far into it here, this short video gives you a glimpse at the answer. And it starts by comparing apples to apples.
Concept #2: Probabilities & Odds
If there is one concept that will be repeated over and over again when learning options, then its “probability.” This video gives you an early primer on how to calculate a probability.
Concept #3: Sports Betting
If you can understand sports betting, then you will find options easy to understand. Sports betting incorporates odds, probabilities of winning, and analysis – so does options. Getting comfortable with a Las Vegas sports betting board will transition you to reading an options board.
Concept #4: Mathematical Edge
This is a very important concept to grasp. Mathematical Edge is at the foundation of any strategy used when playing a probability game. It will be the foundation of your Options Education.
Concept #5: A Market Price
What’s your stock worth? Just look up the price online. You’ll find a quote, which is the market’s price. But, conceptually… what is a market price? Whether a stock price, bond price, currency, or option, a market price always represents the same thing.
Concept #6: Compare
You will no doubt consider this concept “the most obvious.” However, by highlighting the obviousness of it, you’ll be surprised to learn that this lesson is at the heart of what’s wrong with options education.
Concept #7: Margin of Safety
One of the core tenets of value investing is the concept called the “Margin of Safety.” The beauty of this concept lies in its simplicity and it’s the basis of the concept you’ll learn in later chapters – the Options Margin of Safety.
After the "7 Must Know Concepts Before Learning Options" Course, you are ready to get into the details. I guarantee to engage you and teach you more than you can imagine. I start this class with a carnival game that highlights a central concept for understanding options. You’re then introduced to the two types of options - Calls and Puts, and start exploring how to value them at a specific moment in time. Step 1 leaves you with a challenge - an intriguing game to test your knowledge and solidify the concepts learned in this class.
BONUS – Step #1: Value
This is an important class that keeps a steady pace from start to finish. We cover a lot of ground in a quick 20 minutes but you'll be surprised at how easy it flows and how much you understand. The Q&A is set up to connect the dots at the end. If you think this class is good, you haven't seen anything yet.
Step #1: Questions
Here are 18 Questions that test your understanding of what determines an options' value. Don't rush. Just when you think it's easy, you will get thrown a curve-ball. Trust the process. Baby steps. The last question is "The Options Challenge."
Step #1: Answers
Inside you'll find the Answers to the 18 Questions that tested your understanding of what determines an options value. Make sure you are comfortable with the answers before moving forward. It's important because we will build on these concepts in Step #2.
There are so many Online Options “Gurus” repeating comments they heard from someone else who was misinformed. Unfortunately, this perpetuates untruths and confuses so many investors. Not getting the answers to legitimate and simple questions is bad. Getting the wrong answer is ten times worse. I’ve created these videos to help investors understand what is right, what is wrong, and what is misunderstood. Online Option "Gurus" who perpetuate these myths are either lying or don't know what they are talking about. Either way, that's dangerous to the unsuspecting investor.
Options Myth #1: The #1 Place Where Beginners get Confused
Options Myth #2: You Must Understand the Greeks
Options Myth #3: Most Options Traders are Volatility Traders
Options Myth #4: The Top 1% Trade Iron Condors
Options Myth #5: For Option Buyers, Theta is your enemy.
Options Myth #6: The Top 1% Buy ITM Options
Options Myth #7: IV Determines Cheap or Expensive
Options Myth #8: Buy for $1 and Sell at $10. That's a Great Trade!
Options Myth #9: There's a Volatility Edge Selling Options
As a Wall Street Veteran, Options Expert, and founder of OptionsGeek, Felix has found a way to simplify options. He's on a mission to close the knowledge gap between the Top 1% and everyone else.
15 Minutes with Felix
The Starting Block
The Options Challenge! Are You a Beginner?
7 Must Know Concepts Before Learning Options
BONUS - Step 1: Value