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OPTIONS LEARNING PLAN

Core Concept: Structured path to learn options trading, from basic mechanics to risk management and strategies.

Why It Matters

Options are leveraged instruments that can amplify gains or wipe out capital. Learning systematically prevents costly mistakes.

Learning Path

Phase 1: Foundations

Goal: Understand what options are and basic mechanics

1. options_basics - Calls, puts, premiums
2. options_greeks - Delta, gamma, theta, vega, rho
3. intrinsic_extrinsic_value - How options are priced
4. options_expiration - Settlement and exercise

Practice: Paper trading on Think or Swim / IBKR simulator

Phase 2: Basic Strategies

Goal: Execute simple directional trades safely

5. long_call - Bullish leverage
6. long_put - Bearish protection
7. covered_call - Income generation
8. cash_secured_put - Acquire stocks at discount

Practice: Single-leg trades with risk-defined positions

Phase 3: Spreads

Goal: Reduce cost and define risk

9. vertical_spreads - Bull/bear call and put spreads
10. iron_condor - Range-bound income
11. calendar_spreads - Time decay advantage
12. diagonal_spreads - Combining time and strikes

Practice: Multi-leg spreads with capped risk

Phase 4: Advanced Concepts

Goal: Understand volatility and position sizing

• implied_volatility - IV rank and percentile (already created)
• options_risk_management - Stop losses, position limits (already created)

Practice: Volatility-aware entry and exit strategies

Key Mental Shifts

Stock Trading	Options Trading	Note
Buy and hold	Time decay matters	Theta burns
Direction only	Direction + timing + volatility	3 dimensions
Stock price = value	Premium = intrinsic + extrinsic	Time value decays
Unlimited time	Expiration deadline	Forced decision
Linear P&L	Non-linear payoffs	Greeks matter

Study Tips

• Start with LEAPs (1+ year) - Less time pressure
• Paper trade 3 months - Learn without losing money
• Trade liquid underlyings - SPY, QQQ, AAPL (tight spreads)
• Define risk first - Never enter without exit plan
• Track every trade - Journal wins and losses

Trade-offs

Options strengths: Leverage, flexibility, defined risk, income generation
Options risks: Time decay, complexity, liquidity issues, total loss potential

Platform Recommendations

Singapore context:

• Interactive Brokers (IBKR) - Best for US options
• Tiger Brokers - Local platform, US options access
• Moomoo - Paper trading features

Features needed: Options approval, real-time Greeks, strategy analyzer

This learning plan builds on stock_quick_start and technical_analysis as foundational knowledge. ../general

References

• "Options as a Strategic Investment" by Lawrence McMillan
• CBOE Education
• Options Alpha
• Investopedia Options Guide