Options
Options give you the right — but not the obligation — to buy or sell an asset at a fixed price. Learn how calls and puts work, what drives their pricing, and the beginner-safe strategies that limit your downside.
Options have a reputation for being complex — and that reputation is partly earned. Used carelessly, they can expire worthless and lose 100% of their value. But used correctly, they're one of the most versatile tools in investing.
This section starts from scratch: what a call option actually is, why its price changes the way it does, and the handful of strategies that are genuinely beginner-safe. Read in order — the Greeks article (Article 5) won't make sense without Articles 1–3.
Start with Article 1 →Learning Path
7 articlesWhat Are Options? Calls and Puts Explained
The right (not obligation) to buy or sell — how calls and puts work from scratch.
How Options Pricing Works — Intrinsic Value and Time Value
Why an option is worth what it's worth, and why time decay eats your premium.
What Is a Strike Price and Expiry Date?
In-the-money, at-the-money, out-of-the-money — and how expiry affects value.
Buying vs Selling Options — Risk Profiles Explained
Unlimited upside vs capped premium — the asymmetric risk of each side.
The Greeks Explained Simply — Delta, Theta, Vega, Gamma
How each Greek measures a different dimension of option risk in plain English.
Common Options Strategies for Beginners
Covered calls, protective puts, and spreads — the three safest starting strategies.
Using the Options P&L Calculator
How to model your max gain, max loss, and breakeven before entering a trade.
Concepts Covered
Click any concept to see its definition in the glossary.
Active recall is the fastest way to lock in what you've learned. The quiz covers all 7 articles in this section.
Take the Options Quiz →