SMC - The Sharemarket College

SMC404B Trade on the Exchange Traded Options Markets

This unit covers the knowledge and skills required to determine the exposure and risk involved as part of the decision making process in assessing opportunities and executing trades on the Exchange Traded Options (ETO) market.

What will I learn?

After completing this unit successfully you will have the knowledge to apply your new skills in:

Identifying opportunities in ETO market:

Application to analysis of student software program
Analysis of chart, trend and volume, market depth and SEATS system
Identify appropriate strategies for profit opportunities in relation to particular trades
Identification of advanced industry indicators
Trading in the options market by identifying of types of options and their key elements
Identify short term trends and opportunities in share prices using technical analysis
Identification of factors influencing options pricing
Identification of in / at / out of the money options
Identification of the advantages of options trading

Accessing potential trading opportunities in ETO market:

Define the risk / reward relationship of individual trades in the ETO market
Estimating risks of options trading
Application of options strategies
Application of options trading process
Creation of a personal trading plan to include options trading
Psychology of trading
Money management in relation to options trading profitability
Determine entry, exits and stop strategies
Asset allocation
Evaluation of changing market environments

Executing trades and evaluating results:

Determine the trade process
Implement the trade strategy
Monitor results of trades by managing strategy performance
Revise strategies to maximise the potential for personal returns in varying market conditions