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Foundations of Options Trading: Concepts, Markets, and Risk

via Coursera

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Details

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Provider

Coursera
Pricing

Paid Course
Languages

English
Certificate

Certificate Available
Effort

6 weeks, 1 hour a week
Sessions

Self-Paced
Level

Beginner
Subtitles

English

Found in

Part of

Options Trading For Dummies

Overview

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This course equips learners with core skills in options trading, emphasizing the significance of understanding market mechanics and risk. Participants gain a solid foundation in analyzing options contracts and evaluating trading opportunities within professional financial environments. Through structured lessons, learners enhance practical skills in assessing market dynamics, identifying risk-reward scenarios, and making informed decisions. Exercises and examples guide participants to apply these concepts effectively in real-world contexts. The course uniquely combines theoretical knowledge with real-market applications, providing both technical and fundamental perspectives. Interactive quizzes and illustrative examples ensure learners can connect concepts to actual trading scenarios. Ideal for beginner investors and finance enthusiasts, this course requires no prior trading experience. It is designed to build confidence in navigating options markets and understanding the factors that influence trading decisions. This course is part one of a three-course Specialization designed to provide a comprehensive learning pathway in this subject area. While it delivers standalone value and practical skills, learners seeking a more integrated and in-depth progression may benefit from completing the full Specialization. This Specialization is based on the book Options Trading For Dummies, by Joe Duarte. From Options Trading For Dummies Copyright © 2026 by John Wiley & Sons, Inc. All rights reserved, including rights for text and data mining and training of artificial technologies or similar technologies. Used by arrangement with John Wiley & Sons, Inc.

Syllabus

Options Trading and You, the Individual Investor
- This module introduces key concepts in options trading, including essential terminology, risk management strategies, and the importance of pre-trading evaluation. Learners will discover how to use options for income generation and risk mitigation, and explore the differences between stock and index options. Practical guidance is provided to help individuals assess their readiness and choose appropriate trading strategies.
Introducing Options
- This module introduces the fundamentals of listed stock and index options, including their mechanics, valuation, and practical uses in trading and risk management. Learners will compare options to other securities, understand how options derive their value, and explore the rights and obligations involved in buying and selling options.
Trading Places: Where the Action Happens
- This module introduces the structure and participants of U.S. options markets, explores key rules and risks of options trading, and examines the factors influencing option pricing. Learners will gain foundational knowledge to evaluate costs, benefits, and the impact of market movements on trading decisions.
Identifying Option Risks and Rewards
- This module guides learners through the fundamentals of assessing risk and reward in stock and options trading. You will learn how to calculate potential losses and gains, interpret visual risk-reward profiles, and develop trading plans with clear risk limits. By the end, you'll be equipped to make more informed and strategic trading decisions.
Looking Inside the Algo-Controlled Market
- This module explores key indicators and techniques for understanding market sentiment and trend reversals in algorithm-driven trading environments. Learners will examine tools such as the NYSE advance-decline line, options volume analysis, and volatility measures to interpret market breadth and emotional extremes. By the end, you'll be able to assess how algorithms influence market behavior and identify signals of potential shifts.
Sector Analysis: Technical and Fundamental
- This module introduces key techniques for analyzing market sectors using both technical and fundamental approaches. Learners will discover how to interpret price charts, identify sector strength and weakness, and utilize volatility tools such as Bollinger Bands to inform trading decisions. Practical strategies for projecting prices and drawing trend lines are also covered.