Options Trading Basics

Learn the absolute essential options trading concepts.

#1: Options Trading Explained

What is options trading?

#2: Basics of Calls and Puts

Options trading basics: what are options?

Learn the basics of call options and put options.

#3: What is a Strike Price?

Options trading basics: what are options?

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

#4: Options Expiration

Options trading basics: what are options?

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

#5: Intrinsic & Extrinsic Value

Options trading basics: intrinsic and extrinsic value

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

#6: Exercise & Assignment

Option Exercise and Assignment

What happens when an option is exercised?

#7: The Bid-Ask Spread

Options trading basics: the bid-ask spread.

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

#8: Volume & Open Interest

Options Trading Basics: Option Volume and Open Interest

Learn more about option liquidity with volume and open interest.

#9: Order Types: Market, Limit, GTC, Stop-Loss

Options Trading Basics: Order Types

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

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