Learning Objectives:
- Understand fundamental options concepts
- Learn the history of options
- Learn options terminology and mechanics
- Master basic options structures
- Understand option pricing basics
- Learn about option exchanges and markets
- Introduction to Options
- Options Fundamentals
- What are options?
- Calls and puts
- Strike prices
- Expiration dates
- Contract specifications
- Rights and Obligations
- Option buyers' rights
- Option sellers' obligations
- Exercise and assignment
- Settlement procedures
- Physical vs cash settlement
- Options Mechanics
- Contract Elements
- Standard contract size
- Strike price intervals
- Expiration cycles
- Option chains
- Option symbols
- Market Structure
- Options exchanges
- Market makers
- Order types
- Trading hours
- Settlement rules
- Basic Options Concepts
- Moneyness
- In-the-money (ITM)
- At-the-money (ATM)
- Out-of-the-money (OTM)
- Strike selection
- Price relationships
- Time Value
- Time decay concept
- Calendar considerations
- Expiration effect
- Weekend effect
- Holiday considerations
- Options Pricing Basics
- Price Components
- Intrinsic value
- Extrinsic value (time value)
- Option premium
- Bid-ask spreads
- Price quotations
- Pricing Factors
- Underlying price
- Strike price
- Time to expiration
- Volatility
- Interest rates
- Dividends
Glossary of Key Terms:
- Call Option
- Put Option
- Strike Price
- Expiration Date
- Premium
- Intrinsic Value
- Time Value
- In-the-Money
- At-the-Money
- Out-of-the-Money
- Exercise
- Assignment
- Option Chain
- Market Maker
- Moneyness
- Time Decay
- Bid-Ask Spread
- Contract Size
- Settlement
- Option Symbol
Assessment Methods:
- Options terminology quizzes
- Price calculation exercises
- Contract specification practice
- Market mechanics scenarios
- Final module assessment
Resources Provided:
- Options terminology guide
- Price calculation templates
- Contract specifications reference
- Market structure diagrams
- Real market examples