Module 1 of 7

Options Basics

Master the fundamentals of options trading including calls, puts, long and short positions.

Section 1 of 425% Complete
What Are Options?

Options are financial contracts that give you the right, but not the obligation, to buy or sell an underlying asset (like SPY) at a predetermined price before a specific date. Think of them as insurance policies or strategic bets on price movements.

What Are Options?

Key Takeaways

  • Options are contracts, not obligations
  • They have expiration dates (0DTE means expires same day)
  • Two main types: Calls and Puts
  • Limited risk for buyers, defined profit potential