Options Basics
A right, not an obligation — the asymmetry that makes options so versatile.
Lessons
- What Is an Option?The right to buy or sell at a set price, without the obligation. Why that one word changes everything.
- Calls & PutsThe two building blocks of every options strategy ever devised. Get these cold.
- Strike Price & PremiumThe price you lock in and the price you pay for the right. How they relate.
- In, At & Out of the MoneyMoneyness in plain terms — where the strike sits relative to price, and why it matters.
- Intrinsic Value vs Time ValueA premium is part real value, part hope. Splitting the two is the key to everything later.
- Option Buyer vs Option SellerLimited risk and unlimited hope, or steady income and tail risk — two very different seats.
- Reading Option Payoff DiagramsThe hockey-stick charts that show profit and loss at expiry — how to read any of them at a glance.