Nothing in this website is intended to serve as financial advice and should be viewed for educational purposes only. Your financial situation is unique, and I cannot be held responsible for decisions made concerning it

Master Financial Derivatives

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I use Interactive Brokers as a broker, you need to get a broker that offers both equities and options. You will need a margin account. Please cover basic strategies first. Options are like lego, you need to know what each piece does before you combine them into more complex structures.

Remember not everything you touch will turn to gold. You will have losing trades, you will have bad investment theses, you will have losses. Take your hits, learn from them, move on. Manage risk, return will take care of itself. Options are leveraged securities. They can be low risk all the way to high risk. A lot of risk management can be front-end loaded.

About this Website

Hi, I'm Louis, creator of whentohold.com. This is a free website dedicated to demystifying the world of derivatives. My mission is to provide high-quality, accessible education for everyone, from novice investors to seasoned professionals.

Here, you'll find a wealth of information specifically about derivatives. My aim is to equip you with the knowledge and tools needed to make informed investment decisions, without any cost barriers. Whether you're looking to understand the intricacies of financial markets or seeking strategies to grow your wealth through derivatives, my website serves as a comprehensive and reliable resource to guide you on your investment journey.

Segments (Total Estimated Module length: 30+ hours)

Basic Strategies

Topics
▪ Long Call, Short Call
▪ Long put, Short put
▪ Liquidity/Portfolio Management
▪ Convexity Effect
Key Concepts
▪ Theta decay
▪ Positive/negative convexity
▪ Dollar-Delta-Beta and Delta Neutrality
Selected Outcomes
▪ Understand the basics of derivatives

Income Strategies

Key Concepts
▪ Covered calls
▪ Bull Put Spread, Bear call Spread
▪ Iron Condor and Butterfly
▪ Calendar Spread with Calls, Calendar Put Spreads
▪ Short Strangle/Straddle
▪ Short Options Portfolio Management
▪ Covered Short Strangle
Key Concepts
▪ Income factorys
Selected Outcomes
▪ Create an income factory
▪ Minimise or avoid a loss

Directional Strategies

Topics
▪ Synthetic Long and Short
▪ Cross Security Risk Reversal
▪ Call Ratio Backspread, Bull Call Spread
▪ Long Iron Butterfly and Condor
▪ Rolling ITM Short Puts
▪ Stack or Strip
Key Concepts
▪ Rolling options up/down/forward
Selected Outcomes
▪ Replicate a stock to avoid forex exposure
▪ Avoid foreign dividend withholding taxes
▪ Convert all dividends into capital gains

Volatility Strategies

Topics
▪ Implied Volatility Introduction
▪ About the VIX
▪ Volatility Trades
▪ Total Portfolio Management
▪ Skew Trades
▪ Gamma Trading, Gamma risk
Key Concepts
▪ Implied volatility vs historical volatility
▪ Volatility skew, level, crush, and term structure
Selected Outcomes
▪ Trade volatility as an asset class

Futures and Options on Futures

Topics
▪ Equity Futures with ES
▪ Treasury Futures
▪ Treasury Basis Trade
▪ Interest Rate Futures
Key Concepts
▪ Futures & Options on Futures
▪ Sell higher/buy lower than market price
Selected Outcomes
▪ Create the same payoff as the underlying with far less capital
▪ Align option strategies with market conditions