Foundations of Options Trading | The Options Playbook: Mastering the Art of Derivatives

📄️ Beyond Stocks: An Introduction to the World of Derivatives

An introductory guide to the world of financial derivatives, moving beyond traditional stock trading.

A deep dive into the fundamental building blocks of options trading: call options and put options.

A comprehensive guide to understanding the core components of an options contract: strike price, expiration date, and premium.

An in-depth look at the concept of moneyness in options trading, including in-the-money, at-the-money, and out-of-the-money options.

A guide to understanding and using profit and loss (P&L) diagrams to visualize the risk and reward of your options trades.

An introduction to the most important option Greeks, Delta and Gamma, and how they measure an option's sensitivity to price changes.

Explore the concepts of Theta (time decay) and Vega (volatility sensitivity), two critical components of an option's price.

A deep dive into implied volatility (IV), what it represents, and how it influences option pricing and trading strategies.

A practical, step-by-step guide to making your first options trade, from forming a market assumption to managing the position.

A guide to the key factors to consider when choosing a brokerage platform for your options trading journey.