Options Trading

  1. Core Concepts and Terminology
    1. Types of Options
      1. Call Options
        1. Rights of Call Buyers
          1. Obligations of Call Sellers
            1. Call Option Payoff Diagrams
            2. Put Options
              1. Rights of Put Buyers
                1. Obligations of Put Sellers
                  1. Put Option Payoff Diagrams
                2. Anatomy of an Option Contract
                  1. Underlying Asset
                    1. Stocks
                      1. Indices
                        1. ETFs
                          1. Futures
                            1. Commodities
                              1. Currencies
                              2. Strike Price (Exercise Price)
                                1. Strike Price Intervals
                                  1. Strike Price Selection
                                  2. Expiration Date
                                    1. Standard Expirations
                                      1. Non-Standard Expirations
                                        1. Expiration Cycles
                                        2. Premium (Option Price)
                                          1. Premium Components
                                            1. Premium Quotation
                                            2. Contract Size
                                              1. Standardized Contracts
                                                1. Mini Contracts
                                                  1. Jumbo Contracts
                                                    1. Contract Multipliers
                                                  2. Option Moneyness
                                                    1. In-the-Money (ITM)
                                                      1. ITM Call Options
                                                        1. ITM Put Options
                                                        2. At-the-Money (ATM)
                                                          1. ATM Definition Variations
                                                          2. Out-of-the-Money (OTM)
                                                            1. OTM Call Options
                                                              1. OTM Put Options
                                                              2. Impact of Moneyness on Value
                                                                1. Moneyness and Exercise Probability
                                                                2. Option Styles
                                                                  1. American Style Options
                                                                    1. Early Exercise Feature
                                                                      1. Early Exercise Considerations
                                                                      2. European Style Options
                                                                        1. Exercise at Expiration Only
                                                                          1. Settlement Procedures
                                                                          2. Other Styles
                                                                            1. Bermudan Options
                                                                              1. Asian Options
                                                                                1. Barrier Options
                                                                              2. The Option Chain
                                                                                1. Structure of an Option Chain
                                                                                  1. Call Side
                                                                                    1. Put Side
                                                                                      1. Strike Price Organization
                                                                                      2. Reading and Interpreting an Option Chain
                                                                                        1. Strike Prices
                                                                                          1. Expiration Dates
                                                                                            1. Bid and Ask Prices
                                                                                              1. Volume and Open Interest
                                                                                                1. Implied Volatility Column
                                                                                                  1. Greeks Display
                                                                                                  2. Bid-Ask Spread
                                                                                                    1. Market Liquidity Impact
                                                                                                      1. Spread Width Factors
                                                                                                        1. Impact on Trade Execution
                                                                                                        2. Volume and Open Interest
                                                                                                          1. Interpreting Volume
                                                                                                            1. Interpreting Open Interest
                                                                                                              1. Volume vs. Open Interest Relationship

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                                                                                                          1. Introduction to Options

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                                                                                                          3. Option Pricing and Value