POTM Review – The POTM is the perfect addition to the IPLT and PTM video series because it helps you to maximize your profits using leverage!


ITPM Review – Read my Personal Review of Anton Kreils POTM Course

Options Trading Course

ITPMs – Professional Options Trading Masterclass Review

The Professional Options Trading Masterclass (POTM) is the perfect addition to the IPLT and PTM video series because it will teach you to maximize your profits using leverage


18+ Hours of Video Classes


All necessary Spreadsheet Templates


POTM Exam and Certificate


50% DISCOUINT – Only $1,500 $2,999

* As an official ITPM Affiliate I can offer you exclusive discounts!

Price will be reduced after checkout


Content


  • Everything about Equity Options Trading
  • Structuring of Trades to maximize ROI
  • Useful & not-useful Options Trading Structures
  • Directional Options Strategies
  • Portfolio Hedging Strategies


“Options are a great instrument to leverage your capital. Always know your risk and maximum downside before entering a trade!”

Before I did the Professional Options Masterclass (POTM) I had no preknowledge about options. Not alone had I had no knowledge, I had a lot of respect towards them. The information available on the internet was overwhelming for a novice like me.

There are hundres of possible option structures available on the market, some of them are ‘marketed’ by brokers because they sound fancy but are all in all useless for retail traders. The Professional Options Trading Masterclass (POTM) not only provides a useable list and explanation of every strategy needed, it glares with detailed explanations about Volatility, Greeks, insides of the work of Market Makers, and Portfolio Hedging strategies. The POTM is packed with content and helped me to understand everything I need about options.

With around 18 hours in 28 videos the Professional Options Trading Masterclass is packed with information about useful and not-useful option strategies for retail traders. There are a few hundred possible option structures, but only a very few are really useful for retail traders like us. Some of the brokers today promote absurd (and useless) option structures to retail traders, just to sound fancy and cash in commissions. Some of the structures may be useful for other market participants, like market makers, but not for us retail traders. The content is split into the follow key topics:

  • Defining the Mandate
  • Marginal Benefits of Options
  • Everything you need to know about Option Strategies, e.g.
    • Calls
    • Puts
    • Covered Call
    • Ratio Spreads
    • Ladder Spreads
    • Long Strangles/Straddles
    • And many more!
  • Index Options and Portfolio Hedges
  • Market Makers, Volatility
  • Options Delta

This course is not only intersting for traders but for long term investors as well. Options are a great tool to buy ‘protection’ for your portfolio in case you think there might be a market downturn in near term. There are also other strategies (covered call) to generate ‘income’ with existing long stock positions.

The course helped me as well to develop a better understanding about volatility, because it is a skill when trading options!

Defining the Mandate

Anton Kreil explains in detail what options are (derivative products), why and when they are used. In 2010, CFDs (Contract for Difference) where banned in the United States because of their high leverage and risk for retail traders. Most European countries still allow CFDs, but they may be banned in the future. After the banning of CFDs in the U.S., options gained additional interest because it is an instrument to leverage your capital and margin requirments for stock positions are quite high (50%).

The course is the perfect addition to the Introduction to Professional Level Trading (IPLT) and Professional Trading Masterclass (PTM) because it links the fundamental analysis / idea generation with maximizing profits.

POTM Review & Content 1
Defining the Mandate & First Lesson Marginal Benefits of Options

Marginal Benefits of Options

Why are options ‘better’ than stock positions?

The course dedicates two videos to this question. I don’t want to go into detail that much, but I want to list some of the benefits. Unlike stock positions, you have limited downside with most of the useful option structures. Example: You are short ‘Stock A’ and ‘Stock B’ announces a take-over bid after market close. The following day the price of ‘Stock A’ opens 30% higher. Your stop loss, set at 10%, gets triggered. You lose 30% of your position. With most option structures you know exactly the amount you can lose before you enter the trade. I strongly urge everybody not to trade options when you don’t know what you are doing. There are strategies like selling naked calls/puts where you can lose more money than you have applied!

Another benefit is leverage. As mentioned before, stock positions in the U.S. have a 50% margin requirement. With options you don’t have any margin requirments because you pay a premium, which is the maximum amount you can lose. That enables you to buy much more underlying shares which much less capital.

Are there disadvantages as well? For sure! With options, you have to have great timing because every option has a so called ‘expiry date’. These are often the third Friday of a month. Example: If you buy a Call option with a strike price of $50 for 17th August 2023 and paid $1, the stock price has to be above $50 by 17th August to get exercised and above $51 for you to make money (to put it simply).

Professional Options Trading Masterclass
Various Useful Options Structures – The Backbone of the Education

Everything you need to know about Option Strategies

The backbone of the POTM and with 17 videos the largest part is Anton Kreil explaining various useful option trading structures in detail. With each, he gives a quick explanation, describes when to use the strategy and how to use it, calculates the break-even point, maximum upside, maximum downside and includes practical strategy examples. There are two PDFs included, one for useful option structures and one for non-useful structures to look up in the future.

I can’t condense 18 hours of videos in a few paragraphs, but I will try to explain a little bit about the content. Initially, the presentation introduces straightforward structures, encompassing both useful and non-useful options, such as long calls/puts, naked calls/puts, covered calls, or covered call collars. As the series progresses, more intricate structures like option spreads, ratio spreads, ladder spreads, as well as straddles and strangles, are elaborated upon. Each strategy is comprehensively detailed throughout the series. I really liked the explanation because I was an option novices at that time.

POTM Review & Content 3
Various Useful Options Structures & Options Greeks

ITPM provides an Excel spreadsheet for testing various strategies before deploying your trade idea. It is easy to use and only needs a few inputs to calculate break-even, maximum upside and maximum downside.

Index Options and Portfolio Hedges

One of the numerous use cases of options are portfolio hedges or in other words portfolio ‘insurance’. Thanks to the design of options, with most structures you can only lose the premium you have spent. This enables you in times of uncertainty or when you think there will be a market drawdown, to spent a few hundred/thousand dollars (depends on the size of your portfolio) on Put options, to protect your portfolio. In the course you will learn to calculate the needed amount of contracts and where the price of the index has to go to for you make money.

POTM Review & Content 4
Various Useful Options Structures & Volatility

As traders we avoid trading indices. It is lazy and volatility isn’t that great but for long term investors options of indices (ETFs) make perfectly sense as a portfolio hedge.

Market Makers and Volatility

In this video ITPM Senior Mentor Raj Malhotra, former Head of Options Trading Bank of America and Nomura, takes over the session. He talks about Options Market Makers, Volatility, Delta Hedging, and Open Interest and Liquidity.

When you learn about options you will soon know that assessing and understanding volatility are crucial skillsets. Implied volatility of an underlying asset is the only input that is not known in the Black-Scholes model. The Black-Scholes model is a / or the most used model for pricing options and contains 6 inputs:

  • Spot Price
  • Strike Price
  • Risk-Free Interest Rate
  • Days to Maturity
  • Dividends
  • Implied Volatility

Spot price, strike price, risk-free interest rate, days to maturity and dividends are know. Implied volatility is not. Market makers have to calculate it taking into account many factors. Options are usually quite cheap when volatility (e.g. VIX) is low and more expensive when it is high. There is a downloadable Excel spreadsheet including the Black-Scholes model for calculating implied volatility for every option on your own!

Options Delta

I don’t want to go into detail about Delta hedging (market makers) or open interest but into Delta. Delta is a very usefull option greek. It reflects a probability that the option will finish in the Money (ITM). When an option is deep in the money, it Delta will be near .99 = 99%. When a Delta is At The Money (ATM), it Delta will be around .50 = 50%. If you are asking yourself ‘what the heck is he talking about?’ check the example below:

Example

Let’s say you buy a call option for stock XYZ with a strike price of $150 and the stock price is also at $150, it’s Delta will be around .50 which means that the option has a 50% probability to finish In The Money (ITM) and a 50% probability to finish Out of The Money (OTM) at expiration.

If you are confused, don’t worry everything will be explained extremely detailed in the course.

Professional Options Trading Masterclass
POTM Exam

Like the other courses the Professional Options Trading Masterclass (POTM) has an exam at the end. If you pass the exam you will get a certificate.

Anton Kreil presents most of the course with the help of Raj Malhotra and Chris Quill. Powerpoint slides are the most used style of presentation. I liked the format really well.
The slides occasionally suffer from information overload, featuring an abundance of calculations. This stems from the comprehensive nature of the explanations, requiring numerous calculations to illustrate various outcomes. In my opinion a different layout, e.g. tables, would have been better.

The downloadable PDF file comprehensively explains each strategy, serving as an additional resource alongside the videos. This supplementary document allows for in-depth reading and understanding of the concepts presented in the videos.

Overall the course structure is good but not perfect. Starting with the simple structures and finishing with the more complexe ones. In my perspective it would have been better to include short videos of other topics in between to loosen things up a bit. I recognize that they tried to, but only with one or two videos between 5-6 option structure videos.

This is just a triviality because overall the structure is quite good, easy to follow and thanks to the online format you can pause and rewatch at any time due to your personal learning speed. If you have some kind of preknowledge about options, I guess you will be a little faster than me!

The regular price of the Professional Options Trading Masterclass (POTM) is $2,999 which is quite some money. Compared with what you get, in my perspective still very attractive.

The skills you learn in the course are valuable either for traders or long term investors. Thanks to the portfolio hedges and strategies for generating income (e.g. covered call) explained in the course, it is very worthwile for a large audience. Imagine being a buy and hold investor saving for your pension and in the last five years you lose -30% of your money because of a market drawdown. You can avoid this with option hedging / insurance.

* As an official ITPM Affiliate I can offer you exclusive discounts!


Do you want to share your experiences with the POTM? Leave a comment below!

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