Options Trading Basics

Learn the absolute essential options trading concepts.

What is options trading?

Learn the basics of call options and put options.

Learn about an option's strike price and "moneyness."

Learn about when options expire and how to choose an expiration.

Every option has two price components: intrinsic and extrinsic value.

What happens when an option is exercised?

Learn about gauging an option's "liquidity" with the bid-ask spread.

Learn more about option liquidity with volume and open interest.

There are numerous order types you can use when trading stocks or options. Which ones are the best and which are the worst?