I want to trade options
If that is you, here is what this situation usually involves, in the order it usually comes up: the things worth checking, what each one is, and where the arithmetic for it lives. None of it says what to do.
- Every options strategy has a payoff that can be drawn as a picture; the options guide shows how to draw it for a call, a put, and the positions built from them.
- A covered call and a cash secured put are the same trade seen from two sides; the two guides below walk through both.
- For any contract there is a maximum loss, a breakeven, a bid ask spread, and a calendar of earnings and dividends inside its life; each is a number that can be found before the trade.
- Implied volatility is the market's price for uncertainty, and when it is high the reason is usually visible in the company's calendar.
- Position size decides whether a first year of options teaches a lesson or ends the education; the payoff calculator shows a position at any size.
- A notebook with what was expected and what happened is how traders find out what they actually believe; the site's notebook keeps one.
Read these
Options from the beginning: calls, puts, and the Greeks in plain words
Covered calls: the whole position, not just the premium
Cash secured puts and the wheel
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