What are the Different Types of Options Trading Training?

M.J. Casey

Good options trading training is money and time well spent, as beginning investors’ mistakes may be costly and frustrating. Of the investment vehicles available to the average investor, options offer perhaps the largest potential rewards. While not complex or legally intimidating, strategy and timing are key elements that must be appreciated by the options trader. Training options range from self-taught approaches to one-on-one mentoring by experts.

A stock option gives the holder the right to buy (call) or sell (put) a stock at an agreed-upon price some time in the future.
A stock option gives the holder the right to buy (call) or sell (put) a stock at an agreed-upon price some time in the future.

Formal options trading training is not a prerequisite for success, nor is it necessarily an indicator of success. If funds are low but patience is high, there are many excellent books in the library. Recently published books will describe electronic platforms more accurately.

Forex trading classes may be available via online seminars.
Forex trading classes may be available via online seminars.

Some companies offer seminars on options trading training. Large cities may offer fixed location training. Advantages typically include good take-home materials, live-demonstrations of placing options orders, and the ability to ask specific questions. Some seminar companies offer continuing support through emails, personal coaching, and Web forums. Discounts on advanced topics are often available.

Community colleges and municipal recreation centers often offer options trading training classes. The local classes may meet only a few weeks and be very affordable. These classes, while maybe not as sophisticated as seminars, may offer local resources such as teachers and trading centers. Community college classes usually meet for an entire quarter or semester. In some cases, the cost may be avoided by auditing the class and not receiving educational credit.

No matter the source of the information, the new investor will choose a trading platform. Different kinds of companies offer online access to the marketplace. The vast majority of these platforms offer virtual online trading experiences with a virtual portfolio tracking ability. This options trading training tool is very important in establishing trader confidence, agility, and experience prior to investing real funds. All options investors should investigate and master this resource.

One-on-one mentoring is usually performed in a brokerage house where substantial fees are involved and investing decisions are made in a joint manner. Investors planning on risking larger amounts of money to offset the fees associated with options should have a good understanding of the options marketplace. Because options trading is a fast-paced game, investors will require quick access to and a trusting relationship with their broker.

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