Learn Stock Options: Options Made Simple 101

Apply the four plays in options trading by using calls and puts to hedge long or short positions or to speculate without owning the stock.

Explore how option pricing works by dissecting intrinsic value, time value, and the premium, with examples and a look at the Greeks.

Estimate option prices from stock moves using intrinsic value, time value, and delta-driven calculations; explore theta and vega effects on puts and volatility.

Master option pricing by focusing on delta, then learning the Greeks and practical rules, reinforced with homework exercises and real-world examples from the options chain.

Learn basic option buying strategies for uptrends and downtrends, buying calls in bullish markets and puts in bearish markets, guided by the primary trend and five trade confirmations.

Choose the right option expiration by adding four weeks of extra time beyond expected trade duration, balancing open interest to avoid liquidation and difficulties getting in or out.

Understand how stock options create unique risk profiles through a profit-loss graph, comparing long stock, long call, and put options with premium, breakeven, and time decay.

Walk through the option buying checklist to identify trends, select in-the-money calls or puts, confirm trades, and manage delta, open interest, and volatility.

Walks through a bullish call option on Disney, starting with analysis of trend lines and moving averages, then selects an August 14, $85 call option and executes the buy.

Set stop orders and contingency orders to protect capital, using moving averages and average true range to place stops below support or above resistance, then trail and adjust.

Analyze option data by month and expiration, compare weekly and leap options, and practice in a virtual account to understand time decay and risk.

Review the basic building blocks of options, including buying calls/puts, selling calls/puts, then explore three weekly strategies that use delta, time value, and open interest to align with stock movement.

Sell weekly options to exploit rapid time decay, using out-of-the-money, short-dated trades across 52 weekly expirations and capture premium before expiration.