Freshman 100 Level
1.0- Chapter 1: What Are Options?
This chapter will introduce equity options and important information regarding them. To begin, let's set a...
 
1.1- Option Basics
There are two types of equity options: call options and put options. Both types can be bought and sold by...
 
1.2- Basic Option Terminology
There are several basic definitions regarding option contracts that must be memorized. This lesson will...
 
1.3- Option Ticker Symbols
The Options Clearing Corporation has recently enacted an initiative to overhaul the format for option...
 
1.4- Option Styles
Option styles refer to the type of exercise that takes place. There are two types of styles that investors...
 
1.5- Option Expiration Cycle
Expiration dates for option contracts on a certain underlying stock follow a predictable cycle. Every stock...
 
1.6- Option Prices (Premium)
The price of an option, also known as the premium, is made up of two factors: Intrinsic Value...
 
1.7- Exercise & Assignment
As we have talked about, option contracts give the buyer the right to exercise the  contract at any...
 
1.8- LEAPS
Long-term equity anticipation securities (LEAPS) are option contracts with expiration dates of nine months...
 
2.0- Chapter 2: Introduction to Risk Graphs
Risk Graphs are charts that allow investors to analyze theoretical possibilities. This concept is very...
 
2.1- Stock Risk Graphs
It is important to compare the risk graphs of stock versus those of options in order to comprehend the...
 
2.2- Long Option Risk Graphs
When investors purchase options, the risk graphs look much different than when purchasing stocks. The...
 
2.3- Short Option Risk Graphs
We have looked at the buying side of option contracts. Now let's look at the selling side. When an investor...
 
3.0- Chapter 3: Options in the Marketplace
Up until this point, we have covered option contracts and how they can benefit investors who want to own...
 
3.1- Reading Option Chains
Option chains list the available option contracts that can be traded on an underlying stock. Not all stocks...
 
3.2- Option Exchanges
When an investor places a buy or sell order on an option contract, the order is routed to many different...
 
3.3- Order Types
When an investor places an order to buy or sell an option contract there are different order types that can...
 
3.4- Market Makers
Market makers work in the options market to help create liquidity and keep bid/ask spreads from widening...
 

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