Options Trading Basics | 9 Simplified Guides w/ Visuals

Learn the absolute essential options trading concepts!

Options Trading Explained


What is options trading?


​Basics of Calls and Puts

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Learn the basics of call options and put options.


​What is a Strike Price?

Learn about an option’s strike price and “moneyness.”


​Options Expiration

options expiration

Learn about when options expire and how to choose an expiration.


​Intrinsic & Extrinsic Value

Every option has two price components: intrinsic and extrinsic value.


​Exercise & Assignment

What happens when an option is exercised?


​​The Bid-Ask Spread

Learn about gauging an option’s “liquidity” with the bid-ask spread.


​Volume & Open Interest

Learn more about option liquidity with volume and open interest.


​Order Types: Market, Limit, GTC, Stop-Loss

There are numerous order types you can use when trading stocks or options. Which ones are the best and which are the worst?

Options Trading for Beginners(2)(1)

New to options trading? Learn the essential concepts of options trading with our FREE 160+ page Options Trading for Beginners PDF.

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About the Author

Chris Butler received his Bachelor’s degree in Finance from DePaul University and has nine years of experience in the financial markets. 

Chris started the projectfinance YouTube channel in 2016, which has accumulated over 25 million views from investors globally.

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