Options Education Center
Learn about different options strategies, from basic calls and puts to advanced multi-leg spreads. Understanding these strategies is essential for successful options trading.
4
Basic Strategies
5
Spread Strategies
4
Advanced Strategies
$2M
Practice Capital
Beginner Friendly
These strategies are perfect for those new to options trading. They have straightforward mechanics and defined risk profiles.
Long Call
Buy a call option to profit from rising stock prices with limited risk.
Medium Risk
Long Put
Buy a put option to profit from falling stock prices or hedge existing positions.
Medium Risk
Covered Call
Sell a call against shares you own to generate income from premiums.
Low Risk
Cash-Secured Put
Sell a put while holding cash to buy shares if assigned, generating income.
Low Risk
Understanding the Greeks
The Greeks measure different dimensions of risk in options positions
Delta (Δ)
Measures how much option price changes per $1 move in stock. Range: -1 to +1
Gamma (Γ)
Rate of change in Delta. Higher near ATM options and expiration.
Theta (Θ)
Time decay - how much value option loses per day. Accelerates near expiration.
Vega (ν)
Sensitivity to implied volatility changes. Higher for ATM and longer-dated options.