Options Trading
Calls, puts, strategies, Greeks, and options chains
35 articles in this category
What Is Options Trading? A Complete Beginner's Guide
Options give you the right to buy or sell stocks at set prices. Learn the fundamentals of calls, puts, strike prices, and expiration in this starter guide.
Call Options Explained: How They Work & When to Buy
A call option gives you the right to buy a stock at a set price. Learn how calls work, when to buy them, and how to calculate your potential profit.
Put Options Explained: Profiting from Downside Moves
Put options let you profit when stocks decline or hedge your portfolio. Learn how puts work, when to buy them, and how to calculate P&L.
Iron Condor Strategy: Profiting from Low Volatility
The iron condor profits when a stock stays within a range. Learn how to set up this four-leg options strategy, manage risk, and choose strike prices.
Covered Calls: How to Generate Income from Your Stock Holdings
Covered calls let you earn premium income by selling calls against stocks you own. Learn strike selection, timing, and how to manage the position.
Naked Calls & Naked Puts: High-Risk Options Strategies Explained
Naked options carry unlimited risk and require margin approval. Learn how naked calls and puts work, their risks, and why most traders should avoid them.
Options Greeks: Delta, Gamma, Theta & Vega Explained
The Greeks measure how options prices change. Learn Delta, Gamma, Theta, and Vega — the four forces that control every option position.
Implied Volatility: What It Is & How It Affects Options Prices
Implied volatility is the market expectation of future price movement. Learn how IV affects premiums, what IV crush is, and how to trade around it.
How to Read an Option Chain: A Visual Walkthrough
The option chain is your menu of available contracts. Learn to read strikes, bid/ask, volume, open interest, and the Greeks in a visual walkthrough.
Options Strategies: 12 Strategies Every Trader Should Know
From basic calls to complex multi-leg strategies, learn 12 options strategies every trader should know, including when and why to use each one.
Put/Call Ratio: How to Use This Contrarian Sentiment Indicator
The put/call ratio measures whether traders are buying more puts or calls. Learn to use extreme readings as contrarian signals for market direction.
Bull Call Spread: Limited-Risk Bullish Options Strategy
The bull call spread limits your risk while profiting from upside moves. Learn how to set it up, calculate max profit/loss, and choose strikes.
Bear Put Spread: Profiting from Downside with Defined Risk
The bear put spread lets you profit from downside with limited risk. Learn how to construct it, calculate P&L, and pick the right strikes.
Straddles & Strangles: Trading Volatility Regardless of Direction
Straddles and strangles profit from big moves regardless of direction. Learn how to trade volatility around earnings and major events.
Unusual Options Activity: How to Spot & Trade Smart Money Bets
Unusual options activity can reveal institutional positioning before big moves. Learn to spot sweeps, blocks, and large unusual trades worth following.
Option Contracts: Size, Expiration, Strike Price & Mechanics
One option contract controls 100 shares. Here's how strike price, expiration, and premium create the building blocks of options.
Protective Put: How to Insure Your Stock Position
A protective put acts like insurance on your stock. You pay a premium to limit downside while keeping unlimited upside.
Cash-Secured Puts: Getting Paid to Buy Stocks at Your Price
Sell a put, collect premium, and buy the stock only if it drops to your price. If it doesn't, you keep the premium.
Buy to Open, Sell to Close: How Options Orders Actually Work
Options have four order types: buy to open, sell to close, sell to open, buy to close. Here's what each one does.
Long Call vs Short Call: Risk, Reward & When to Use Each
Long calls bet on upside with limited risk. Short calls collect premium but face unlimited risk. Know the difference.
Collar Strategy: Protecting Gains with Puts & Covered Calls
A collar wraps your stock position with a protective put and covered call. It limits both downside and upside — often for zero net cost.
Options Moneyness: ITM, ATM & OTM Explained
Moneyness describes whether an option has intrinsic value. Learn what ITM, ATM, and OTM mean and how they affect pricing.
Options Premium: What Determines the Price of an Option
The premium is the total price of an option. Learn what drives it — intrinsic value, time decay, and implied volatility.
How Call Options Work: Mechanics from Buy to Expiration
Follow a call option from purchase to expiration. Learn the mechanics of exercise, assignment, and what happens at each stage.
How Put Options Work: Mechanics from Buy to Expiration
Follow a put option from purchase to expiration. Learn the mechanics of exercise, assignment, and when puts are most valuable.
Selling Puts for Income: The Complete Guide
Selling puts collects premium upfront with the obligation to buy stock if assigned. Learn the strategy and risk management.
Buying Calls: When to Go Long Options & How to Manage Risk
Buying calls is the simplest bullish options trade. Learn when to buy, which strike and expiration to choose, and how to manage risk.
Options Assignment: What Happens When You Get Assigned
When you sell options and get assigned, you must deliver. Learn when assignment happens and how to manage it.
Rolling Options: How to Roll Forward, Up & Down
Rolling an option extends or adjusts your position without closing it outright. Learn to roll forward, up, and down.
Straddle: Profiting from Big Moves in Either Direction
A straddle profits from a large move in either direction. You buy a call and a put at the same strike price.
Strangle: A Cheaper Way to Trade Big Moves
A strangle costs less than a straddle by using out-of-the-money strikes. It needs a bigger move to profit.
Buy to Open vs Buy to Close: Options Order Actions Explained
Buy to open creates a new position. Buy to close exits a short position. Two different actions with the same verb.
Sell to Open vs Sell to Close: Options Order Actions Explained
Sell to open writes a new contract. Sell to close exits a position you already hold. Same verb, opposite outcomes.
Long Call vs Short Call: Opposite Sides of the Same Contract
Buying a call risks the premium. Selling a call risks unlimited loss. Same contract, opposite positions.
What Is Options Trading?
Options trading is the buying and selling of contracts that give you the right to buy or sell a stock at a predetermined price within a specific timeframe.