A Beginner's Guide to Options Trading

Options are financial derivatives that give the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price.

Key Concepts

Call Options

A call option gives you the right to buy an asset at the strike price.

Put Options

A put option gives you the right to sell an asset at the strike price.

The Greeks

• Delta — sensitivity to underlying price
• Gamma — rate of change of delta
• Theta — time decay
• Vega — sensitivity to volatility