Guides ยท Finance

Option Trading Basics

Understand calls and puts

Option basics cover calls and puts, strike prices, expirations, premiums, intrinsic/time value, and common uses like hedging or speculation, with risks of loss and complexity.

Core Terms

Call/put, strike, expiration, premium, intrinsic vs time value.

Uses

Hedging positions or directional/speculative trades.

Risks

Leverage cuts both ways; assignment and decay matter.

Related Terms