Option Contracts

Here is a checklist and guide to help you navigate options expiration week when you have positions that need to be closed, adjusted, or rolled out to the next expiration.

Use Option Alpha's 7 step option trade entry checklist to filter and scan for new trading opportunities.

Options traders often reference the "Greeks" as a way to measure an option price's sensitivity to external factors such as volatility and time decay.

Moneyness is used to describe an option contract's intrinsic value. An option's strike price is either in-the-money (ITM), out-of-the-money (OTM), or at-the-money (ATM).

Options pricing tables, also known as options chains, list all relevant information an investor needs to know about an options contract. Learn how to read and understand an options pricing table.

Option profit and loss diagrams are visual aids that illustrate where options strategies will make or lose money at expiration based on the underlying asset’s price. Profit and loss diagrams diagrams help to explain all potential outcomes of a strategy including break-even points, maximum loss, and maximum gain.

Buying options and selling options have different profit and risk potential based on the rights and obligations of the two parties involved.

This video provides an understanding of the two options contract types and the details of call and put options basics that you need to know.

These are the main components of every options contract. Learn an option contract's specifics and how to use them.

Unlike trading stocks directionally, options allow you to profit multiple ways in different market conditions. Learn the advantages and disadvantages of stock trading and options trading.

Learn the details of an options contract, including the rights and obligations of the two parties involved.

Options parity happens when a stock is trading at its intrinsic value with no extrinsic value (or time value). Learn about options parity and how put-call parity impacts options pricing.