With the advent of electronic trading, individual investors have gained the ability to use options to manage their portfolios. But as the options industry grows more accessible, it has also grown more complex, and the industry is focusing on education as the key to expanding the audience for options trading.
Chicago-based optionMonster was founded eight years ago by brothers and frequent CNBC contributors Jon and Pete Najarian with the aim of educating individual options traders. The company offers market analysis and option trading ideas, as well as free online courses, webinars, and local investor conferences, and it specializes in helping to evaluate unusual trading opportunities. Its clients come from all over the country.
OptionMonster recently expanded into distance learning and extended their product line with more interactive programs, digital workbooks, and one-on-one mentoring. Kurt Oeler, who was recently promoted to president of optionMonster from vice president and general manager, spoke with JLN’s Sarah Rudolph about the new developments at the company – a division of optionMonster Holdings, Inc. – and the challenges of educating traders about options. According to Oeler, clients need a grounding in the basics before they can apply given options strategies, and some don’t fully understand that it takes a lot of time and practice to really learn all the elements involved in trading options. He also discusses the Najarians’ forthcoming book, “How We Trade Options,” a sequel to Jon Najarian’s book “How I Trade Options.” The new book covers topics such as weeklys and other new options products and also takes a personal approach by recounting some of the Najarian brothers’ journey from the Chicago open-outcry pits to the world of algorithmic trading.