Overview

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This course teaches practical skills in designing and executing options trading strategies, emphasizing the importance of protecting investments and managing risk. Participants learn to build comprehensive trading plans that integrate strategy, execution, and portfolio safeguards. Learners improve their capabilities by practicing trade planning, understanding different option styles, and applying risk management techniques. Exercises and scenario-based learning enable participants to make informed trading decisions confidently. What sets this course apart is its focus on translating theory into actionable strategies through real-world applications. Structured quizzes and examples reinforce practical execution while highlighting cost management and order nuances. This course benefits aspiring traders and finance professionals seeking to strengthen strategy design and portfolio protection skills. No prior trading experience is required, though familiarity with basic investing concepts is helpful. This course is part two 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

Practicing Before You Swing
- This module guides learners through the essential practice techniques for options trading, including paper trading, understanding volatility and option Greeks, and backtesting strategies with risk management. By simulating trades and analyzing historical data, learners will develop the skills needed to refine their trading approaches and build long-term consistency.
Designing a Killer Trading Plan
- This module guides learners through building a structured options trading plan, emphasizing account setup, income targeting, cost management, and effective order execution. Participants will gain practical skills to manage trading as a business and optimize both entry and exit strategies for options positions.
Getting to Know Different Option Styles
- This module introduces the mechanics of different option exercise styles, risk management strategies, and the nuances of index options. Learners will discover how expiration and assignment work, and how to make informed decisions when trading or managing option positions. Practical scenarios and exceptions are explored to help you navigate real-world trading situations.
Protecting Your Portfolio with Options
- This module introduces key options strategies for hedging stock portfolios, including the use of puts and calls to manage risk. Learners will analyze the trade-offs between protection cost and time horizon, and understand how corporate actions can impact adjusted options. Practical examples and risk management techniques are emphasized throughout.
Increasing Profit Potential and Decreasing Risk
- This module introduces strategies for managing risk and increasing profit potential using options trading. Learners will explore how to determine total dollars at risk, analyze trade setups, and combine options to hedge positions effectively. Practical examples illustrate how professional traders use spreads and hedging techniques to optimize returns and minimize losses.