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Options Guide

Intermediate

In our intermediate-level videos, Firstrade covers straddle vs. strangle options, repair and exit strategies, stock splits, and more.


Straddles and Strangles: Comparing and Contrasting These Two Volatility Strategies

OIC instructor Marty Kearney discusses long straddles and strangles. Marty will define what both of these volatility strategies are, discuss the risk and rewards of each, then take a look at how changes in stock price and volatility can impact each strategy’s pricing behavior.

Repair & Exit Strategies

In this webcast, OIC instructor Marty Kearney teaches you the importance of developing repair and exit strategies before you begin investing in options. You'll learn about foreseeing possible outcomes, understanding your risks versus your rewards, and when to utilize long and short options. He will also teach you when to do nothing and when to double up (or buy more) when stock prices decline, as well as how to exit with a long call or put position at or near expiration.

Option Contract Adjustments: Stock Splits

In this option contract adjustments webcast on stock splits, OIC instructor Todd Wilemon of NYSE Arca discusses what happens when a corporate action results in a stock split. Using examples from an even, odd, and reverse stock splits, Todd will demonstrate what can take place when an underlying stock undergoes this type of contract adjustment.

This webcast on stock splits is the first of a three-part series on option contract adjustments. Be on the lookout for the next two webcasts in the series:

  1. Option Contract Adjustments: Mergers & Acquisitions
  2. Option Contract Adjustments: Dividends & Distributions

Option Contract Adjustments: Dividends & Distributions

In part two of this three-part series on option contract adjustments, OIC instructor Todd Wilemon of NYSE Arca discusses what special dividends and distributions are as they relate to contract adjustments. Todd will review general concepts, including aggregate exercise amount and cash-in-lieu. He also provides examples of what can take place when a company announces a special cash or stock dividend/distribution.

This webcast on stock splits is the second of a three-part series on option contract adjustments. Be on the lookout for the last webcast in this series:

  1. Option Contract Adjustments: Mergers & Acquisitions

Option Contract Adjustments: Mergers & Acquistions

In the last part of this three-part series on option contract adjustments, OIC instructor Todd Wilemon of NYSE Arca discusses what happens when a contract adjustment is made as a result of a merger or acquisition. He will review general concepts such as aggregate contract value and take you through examples of an all cash merger as well as a stock and cash merger.

Trading Mechanics

OIC instructor Aubree Greenspun of NASDAQ OMX PHLX reviews important trading mechanics that every investor should know, including how to understand cash requirements, which services are available through your brokerage firm, and what to do once your position is established. She also provides an overview of the various types of option orders, including market, limit, and spreads.


When exploring straddle vs. strangle options and other strategies, turn to Firstrade’s guide to options to learn what you need to know. Next up is our advanced video on how options trading works, volatility, and more. Get started trading today when you open an account at Firstrade!

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