What to Learn Next
Your roadmap for continuing your options education after the crash course
We're recording short 2-3 minute video explainers for every lesson. The full written guide is ready below. Bookmark this page — the video will appear right here when it's ready.
You've covered the essentials. You know what options are, how they're priced, and three strategies to start with. Here's what to focus on next, in order of priority.
Level 1: Practice (Weeks 1-4)
Paper trade. Open a simulator account and place 20-30 trades using the three strategies you just learned. Watch how theta eats your options. See IV crush happen after earnings. Experience a position going from profitable to underwater. All of this is free and invaluable.
Track every trade in a simple spreadsheet: what you traded, why, entry price, exit price, profit/loss, and what you learned.
Level 2: Deepen Your Knowledge (Weeks 2-6)
Take the full Beginner Course. This crash course gave you the summary. The 20-lesson beginner course goes deeper on every topic — strike selection, expiration choice, how all the Greeks interact, and detailed trade management.
Study implied volatility seriously. IV is the factor that separates consistent traders from gamblers. Learn IV rank, IV percentile, and how to spot when options are cheap vs. expensive. This single skill will improve every trade you make.
Level 3: Add Strategies (Months 2-3)
Once you're comfortable with long calls, long puts, and covered calls, add these:
Cash-secured puts: Sell a put on a stock you'd want to own. Collect premium. If the stock drops to your strike, you buy shares at a discount. If it doesn't, you keep the premium. It's like getting paid to wait for a stock to get cheaper.
Vertical spreads: Buy one option and sell another at a different strike. This reduces your cost and defines your risk on both sides. Bull call spreads and bear put spreads are the building blocks of more advanced trading.
Iron condors: Sell both a call spread and a put spread. You profit if the stock stays in a range. This is how many income-focused traders make consistent returns.
Level 4: Understand the Market (Ongoing)
Watch the VIX. The VIX is the market's "fear gauge" — it measures expected volatility in the S&P 500. High VIX means expensive options and fearful markets. Low VIX means cheap options and complacent markets. Knowing the VIX context helps you decide whether to buy or sell premium.
Follow earnings cycles. Options behave differently before, during, and after earnings season. Understanding this rhythm gives you an edge in timing your trades.
Study position management. Entering trades is the easy part. Managing them — when to take profit, when to cut losses, when to roll — is where the real skill lives.
The Golden Rules (Revisited)
No matter how advanced you get, these never change:
- Never risk more than you can afford to lose
- Always have an exit plan before you enter
- Position size matters more than being right
- Keep learning — the market always has something new to teach you
Join the Community
Trading is better when you're not alone. Join the OptionsNest community to discuss trades, ask questions, and learn from other traders at every level. The fastest way to improve is to surround yourself with people who are on the same journey.