SMSF Investing Education & Strategies
Options
ASX Online Education
For education on trading options, the best place to begin is with the market operator itself, The Australian Securities Exchange (ASX). The ASX have created a number of truly excellent interactive online classes, that have been structured to cover all aspects of the options market and allow you to progress through all topics at your own pace, or select a particular topic of interest.
For your convenience, and with the kind permission of the ASX, we have listed these online classes below, and have provided the live links to each one. Simply click on the title of interest, and your away. This content was created and is owned by the ASX.
1. Introduction to options
An introduction to the basics of option trading. Why trade options? What are options, and who uses them? This course goes through the basic features of options, and explains how they differ from shares.
Estimated time to complete: 20mins.
Introduction to options - text version (PDF 797KB)
2. What are options?
A more detailed look at what is in an option. This course explains the difference between call and put options, and discusses the main features of options traded on ASX, including exercise price, expiry, and exercise style.
Estimated time to complete: 20mins.
What are options? - text version (PDF 842KB)
3. Option pricing
How much is an option worth? This course looks at the influences on an option’s price. We explain the difference between intrinsic value and time value, and discuss the influence of variables such as volatility and time to expiry. We also look at the central importance of time decay in option trading.
Estimated time to complete: 20mins.
Option pricing - text version (PDF 641KB)
4. Choosing the right option strategy
A basic guide to the things you need to think about when developing your option strategies. This course discusses some of the differences in approach between share investing and option trading. We explain how you can develop more effective strategies by taking into account volatility and time as well as price movements.
Estimated time to complete: 20mins.
Choosing the right option strategy - text version (PDF 614KB)
5. Profit from a rising share price
A look at how you can use options to trade your view that the market will rise. The bought call gives you leveraged exposure to a share price rise, and enables you to lock in the maximum purchase price for shares. This course discusses potential profits and losses, explains how to choose between the different calls on offer, and looks at your choices once you have bought your call.
Estimated time to complete: 20mins.
Profit from a rising share price - text version (PDF 766KB)
6. Profit from a falling share price
How can you make money when you think share prices will fall? This course explains how put options give you the possibility to profit on the way down. We look at the risks and rewards of the bought put, and explain how to choose between the available options.
Estimated time to complete: 20mins.
Profit from a falling share price - text version (PDF 778KB)
7. Protect your shares
Using options to protect your shares. Put options enable you to protect your shares from a fall in value – without having to sell them. This course explains how you can lock in a minimum sale price for your shares. We explain the benefits and costs of the protective put, and how to put the strategy in place.
Estimated time to complete: 20mins.
Protect your shares - text version (PDF 654KB)
8. Earn income from your shares
Shares generally produce little value in flat markets. This course explains how you can write call options to work your portfolio harder. Writing covered calls generates income in the form of option premiums and can be a profitable strategy in neutral markets.
Estimated time to complete: 20mins.
Earn income from your shares - text version (PDF 710KB)
9. Index options
Index options allow you to trade the whole market in one transaction. ASX offers options over three share price indices, giving you broad exposure in one trade. This course explains how you can use index options to get leveraged exposure to a rising or falling market, or to protect a diversified portfolio from a fall in value.
Estimated time to complete: 20mins.
Index options - text version (PDF 811KB)
10. How options are traded
The mechanics of trading options. This course explains how the options market works. We look at how options are traded, cleared and settled, and point out the differences from, and similarities to, share investing. We discuss the role of market makers, explain the process of exercising an option, and give a few pointers on finding a broker.
Estimated time to complete: 20mins.
How options are traded - text version (PDF 602KB)
- SMSF Basics
- SMSF Setup Info
- SMSF Admin Info
- Compare SMSF Setup & Admin Providers
- SMSF Technical Education & Strategies
- Monthly SMSF Technical Updates
- Super Limits, Thresholds and Data
- Calculators & Projection Tools
- Document Samples
- Step by Step SMSF Investment Process
- Asset Allocations
- DIY Shares - Value Investing
- Bonds & Fixed Income Investing
- Other SMSF Investment Education
- Compare Online Brokers & Newsletters
- Have your voice heard with SISFA
Membership
It's FREE, but the benefits
are huge.
Stay up to date
with all
the latest strategies,
get
access to all of our
resources,
and much more.
Click the button below to find out more.
