A good option trading tutor is sometimes called a mentor - someone who not only teaches you about the fundamentals of option trading, but also guides you during the early stages of your trading career until you find your own wings and can fly for yourself.
Option trading is not only a science, but an art. The science is
all about the theory - call and put options, what they are, how they
provide leverage, how they are priced, how you can open any combination
of buy and write positions with different expiration dates and exercise
prices if desired, thus creating numerous option trading strategies, the
number of which is only limited by the imagination. This is the science of trading options.
But the art of options trading lies within yourself. It comes with experience and allows you to "sense" and evaluate a good trading opportunity when you see it. It's a subconscious thing, like learning to drive a car, play an instrument, or dance - you acquire it by experience. It also includes psychological factors such as self discipline and how you react to losing situations.
An option trading tutor can only teach you so much. After that, it's up to you.
1. Do you want to be a short term option trader?
Then your focus might be on simply buying call or put options in the hope that they will make you a minimum 30 to 50 percent, but hopefully 100 percent profit within a few days or a week at most. In such a case, one approach is to focus on becoming a master chartist and predict future price movements in stocks. Adopting a philosophy such as "the trend is your friend" or possibly looking at chart reversal patterns, you buy and sell with a focus on timing.
If this is what you want, then you may like to consider the following option trading tutor:
Kim Reilly - Master Chartist Options System
Nik Halik - Options Super Trader
2. Do you prefer a more passive, longer term strategy?
Then the kind of option trading tutor you want, will be focussed on either range trading strategies which profit from options theta decay working in your favour, or breakout strategies such as straddles and strangles.
If advanced strategies involving selling options and adjusting positions to take advantage of theta (time) decay, is your preferred trading style, then have a look at this option trading tutor:
The Trading Pro System - How to Run your Option Trading like a real business
The Trading Pro System includes 24 hours of in-depth video tutorials about option trading, that you download to your computer hard drive. It also includes a bonus module where various wealth building and day-trading strategies are discussed.
For an extra $9.95 you can join the Daily Market Advantage newsletter for one month and receive a daily market analysis, as well as access to the FAQs about the Trading Pro System. Here, you can ask questions about anything you don't quite understand from the videos and receive answers. This is what an option trading tutor does - he follows up to consolidate your learning.
Or maybe you're into credit spreads in which case, you should take a look at the Planet Wealth strategy developed by Andrew Dimitri. They provide you with downloadable e-books explaining the system and Excel spreadsheets to help make the most your credit spread trading experience.
Choosing an option trading tutor that best fits the way you want to trade options, is about deciding how much time you have available to spend on your trading activities. If you hold down a regular job and simply want extra income without having to monitor your trades several times a day, then the more passive 'monthly income' "option 2" approach may be for you.
But if you have more time, along with a higher risk tolerance, then the short term super-traders in "option 1" would be worth a look.
Either way, the right tutorial for you, will help you trade with confidence.
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