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.
You see, time spent learning isn’t always the measurement of a successful outcome. What matters is the quality of the education that helps you fully understand the material in a shorter amount of time.
Let’s test that.
The Options Challenge
How do you know if you’re an “Options Beginner”?
I created “The Options Challenge” to help you appreciate where you’re located on the learning curve. It’s simple to play.
Here are the rules:
- Today is January 1st.
- XYZ is the stock.
- XYZ price = $100.
- XYX distributes No Dividends.
- Interest Rates are 0%.
Now, do your best to place these 9 options in order from least value to highest value.
For example, the August $95 Puts are worth more than the June $95 Puts. So, August would be placed to the right of June.
Get the Answers
After putting the options in sequence, you can find the ANSWERS HERE and scroll down to answer #18.
Experts will know the answers, be able to explain and debate them. They’ll be able to understand the issues faced in getting the answers.
Intermediates might get the answers right and may even understand some of the issues underlying them. However, their ability to articulate the issues underlying the answers need work.
Beginners are everyone else.
If you do this exercise and go through the Answers I laid out, then you will learn a lot in a small amount of time.
At that point, I will encourage all the non-experts to get started here for Free on the Best Options Education available on the market. I guarantee an engaging educational experience with NEW easy to understand concepts that is changing the way investors think about options.