Last updated on February 14th, 2022 , 10:01 am
Learn the absolute essential options trading concepts!
Options Trading Explained
What is options trading?
Basics of Calls and Puts
Learn the basics of call options and put options.
What is a Strike Price?
Learn about an option’s strike price and “moneyness.”
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?
The Best Brokerage for Traders
We’ve been trading with tastyworks for years, benefiting from their trader-friendly fees:
- Free Stock Trading
- $10 Commission-Cap Per Option Leg
- Close Trades for Free*
- $10 Max Fee Per Crypto Order
Sign up with tastyworks using the link below to secure a $200 free stock signup bonus.
* Applicable exchange, clearing, and regulatory fees still apply to all opening and closing trades except for cryptocurrency orders which are not subject to exchange, clearing, and regulatory fees.
projectfinance Options Tutorials
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.