Options Trading Basics

Learn the absolute essentials within the basics of options trading.

You can trade whatever product you'd like, so why trade options?

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?