
Explore the basics of options trading, including calls, puts, and going long or short. Clarify premium payments, bid-ask spreads, liquidity, and why these matter.
Learn the basics of calls and puts, including rights and obligations for buyers and sellers, and explore risk, reward, breakeven, and simple spread strategies.
Open a new option contract by buying to open or selling to open, control 100 shares, and use limit orders for liquid, leveraged trades.
Discover how the options premium is the amount paid to buy an option and how a contract controls 100 shares by applying the bid-ask price per contract.
Explain calls in the money when stock is above the strike and puts in the money when the strike is above stock, and how out-of-the-money options have little value.
Learn how option liquidity drives trading decisions by analyzing calls and puts in-the-money or out-of-the-money, and evaluating volume, open interest, and bid-ask spreads to avoid illiquid options.
This course will build a solid foundation for trading in the options market. We detail the "rights" and "obligations" associated with calls and puts. We show you how to read an option chain. How to see what the options are trading for and how much it is in dollars amounts. We teach you which options to trade and which to avoid due to liquidity. At the end of this course, you will know all of the following:The rights associated with buying options
The obligations associated with selling options
How to identify an in-the-money option
How to identify an at-the-money option
How to identify an out-of-the-money option
NBBO = National Best Bid & Offer
How to ensure that you have "enough" liquidity
And so much more!
If you are interested in generating cash flow from options, this is a great course for you!