Options course

How can you make money when you think share prices will fall? This module 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.

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 module 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.

Shares generally produce little value in flat markets. This module 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.

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 module 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.

The mechanics of trading options. This module 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.