RESOURCE CENTRE
Options trading, simplified
Here’s how to understand the basics of options trading and the risks involved. We’ll also walk you through the more advanced trading moves — and how to know if you’re ready for them.
The foundations of options
To understand the basics of options trading, you need to be familiar with these three things: calls, puts, and the mind-numbing charts that show you all the options being offered.
What is a call option?
Think a stock price is going to go up? A call option lets you take that position.
What is a put option?
Think a stock price is going to go down? A put option lets you take that position.
What is an options chain?
These complicated tables show you what options are available to buy and how much they’ll cost you.
Options terminology
Essential terms
Some important words to know, from strike prices to expiration dates.
The Greeks
Some important Greek words to know. The options Greeks are mathematical indicators that influence option prices.
Advanced options strategies
Six silly mistakes options traders tend to make
Even the most experienced traders do things that either limit their returns or cost them serious money. Here’s how to avoid falling into the same traps.