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Introduction- What Are Options?
This chapter will introduce equity options and important informationregarding them. To begin, let's set a...
1.1- Option Basics
There are two types of equity options: call options and putoptions. Both types can be bought and sold by...
1.2- Basic Option Terminology
There are several basic definitions regarding option contracts thatmust be memorized. This lesson will...
1.3- Option Ticker Symbols
The Options Clearing Corporation has recently enacted an initiative tooverhaul the format for option ticker...
1.4- Option Styles
Option styles refer to the type of exercise that takes place. Thereare two types of styles that investors...
1.5- Option Expiration Cycle
Expiration dates for option contracts on a certain underlying stockfollow a predictable cycle. Every stock...
1.6- Option Prices (Premium)
The price of an option, also known as the premium, is made up of twofactors: Intrinsic Value...
1.7- Exercise & Assignment
As we have talked about, option contracts give the buyer the right to exercise the contract at any...
1.8- LEAPS
Long-term equity anticipation securities (LEAPS) are optioncontracts with expiration dates of nine months...
Chapter 2- Introduction to Risk Graphs
Risk Graphs are charts that allow investors to analyze theoreticalpossibilities. This concept is very...
2.1- Stock Risk Graphs
It is important to compare the risk graphs of stock versus those ofoptions in order to comprehend the...
2.2- Long Option Risk Graphs
When investors purchase options, the risk graphs look much differentthan when purchasing stocks. The reason...
2.3- Short Option Risk Graphs
We have looked at the buying side of option contracts. Now let's look at the selling side. When an investor...
Chapter 3: Options in the Marketplace
Up until this point, we have covered option contracts and how theycan benefit investors who want to own...
3.1- Reading Option Chains
Option chains list the available option contracts that can be traded on an underlying stock. Not all stocks...
3.2- Option Exchanges
When an investor places a buy or sell order on an option contract,the order is routed to many different...
3.3- Order Types
When an investor places an order to buy or sell an option contractthere are different order types that can...
3.4- Market Makers
Market makers work in the options market to help create liquidity and keep bid/ask spreads from widening...
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5.2- Delta (Short Options)
The last lesson covered Delta long option positions. This lesson will cover Delta short option...
10.3- Trade Plan- Identification of Stocks
The third section of the trading plan focuses on eliminating a mistake many beginners make: trying...