Education

 

Advanced Syllabus


Advanced Level Syllabus

Overview
After working through the material in the Advanced Level you should have a strong knowledge of advanced spread trading. Spread strategies that rely on multiple legs and unique payoffs will be covered in this level along with strategies to dynamically hedge positions. Upon successful completion of the exercises and exam included in this syllabus you will be fully prepared to dive into the material presented in the Options Institute Plus program.

Required Online Courses

  • Option Price Behavior: This lesson covers volatility, delta, time decay and implied volatility.
  • Managing Stock Positions: Strategies for managing long stock positions. Various situations are presented along with a number of possible forecasts for the underlying stock, and strategies that best fit each forecast.
  • Managing Option Positions: Strategies that allow you to manage, or take follow-up action, to protect unrealized profits, or to help eliminate or reduce accrued losses on your option positions.
  • Trading Volatility: Various strategies including Long and Short Straddles, Long and Short Strangles, Butterflies, and Condors. The profit and loss potential of each strategy is examined as well as how each is related to volatility.
  • Spreading II: An overview of spreads that are utilized in very specific market conditions, such as: Ratio Spreads, Backspreads and Time Spreads.
  • Basics of Spreading: Ratio and Backspreads: Detailed explanations, along with examples of Ratio and Backspreads.
  • Basics of Spreading: Butterflies and Condors: Detailed explanations, along with examples of Butterflies and Condors.

Required Strategy Discussions

  • Equity Option Strategies - Covered Combinations
  • Equity Option Strategies - Equity Collar
  • Equity Option Strategies - Stock Repair
  • Index Option Strategies - Buying Index Collars to Protect Portfolios
  • Index Option Strategies - Buying Index Puts to Hedge the Value of a Portfolio
  • S&P 500 Strategies (SPX) Protective Collar with SPX Options

Required Webcasts

  • Option Trading: The Basics of Condors
  • Option Trading: Combining Butterflies
  • Option Trading: The Basics of the Collar Strategy

Required Tasks

  • Simulated Trading Tools - trade all strategies presented in the required webcasts section.

Required Exam

  • Proficiency Exam - Advanced Level



Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on this website is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in the website information. No statement within the website should be construed as a recommendation to buy or sell a security or to provide investment advice. The inclusion of non-CBOE advertisements on the website should not be construed as an endorsement or an indication of the value of any product, service, or website. The Terms and Conditions govern use of this website and use of this website will be deemed acceptance of those Terms and Conditions.