options
7 explainers tagged “options”.
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Options Explained: Calls, Puts, Strikes and Expiration
An option is a contract, not a share. Learn the four building blocks every option shares — call vs. put, strike price, expiration and premium — and what it means to be the buyer versus the writer.
Moneyness: In, At and Out of the Money
Moneyness describes where the stock price sits relative to the strike. Learn ITM, ATM and OTM for calls and puts, and how every premium splits into intrinsic value and time value.
Options Expiration and Assignment
Every option has a deadline. Learn what happens at expiration, the difference between exercise and assignment, and why time decay works against option buyers every day.
Covered Calls for Income
Selling call options against stock you already own to collect premium income. How the covered call works, the income-for-upside trade-off, and the risks to weigh.
Basic Options Strategies: Covered Calls, Protective Puts and Spreads
You don't have to buy a bare call to use options. Learn the four foundational strategies — covered call, protective put, and the two vertical spreads — and the risk each one is built to shape.
The Option Greeks: Delta, Gamma, Theta and Vega
The Greeks measure how an option's price reacts to the things that move it: the stock, the passage of time and volatility. Learn delta, gamma, theta, vega and rho and what each one warns you about.
Implied Volatility and What Drives an Option's Price
Two options on the same stock can cost wildly different amounts. Learn how implied volatility, time to expiry and moneyness set an option's premium — and why IV is the part traders argue about.
