Skip to content
GetProfitable
Search

Options Fundamentals: Calls, Puts and the Greeks

What an option contract actually is, how it is priced, what the Greeks measure, what implied volatility does to you, and how long options, verticals and income strategies really pay off. Worked numbers and full payoff tables throughout, no hype.

Module 1: What an option is

Rights versus obligations, contract specs, the multiplier, expiration cycles, exercise style, and how index options differ from equity options.

  1. Rights versus obligations9 min
  2. Contract specs and the multiplier8 min
  3. Expiration cycles and exercise style9 min
  4. Index versus equity options9 min

Take the module quiz

Module 2: Pricing intuition

Intrinsic and extrinsic value, moneyness, the shape of time decay, why far out-of-the-money options behave like lottery tickets, and put-call parity in plain words.

  1. Intrinsic and extrinsic value9 min
  2. Moneyness and the time decay curve10 min
  3. Lottery tickets and put-call parity9 min

Take the module quiz

Module 3: The Greeks, one at a time

Delta as hedge ratio and probability proxy, gamma, theta with a decay table, vega, rho, and how each changes with time and moneyness.

  1. Delta: hedge ratio and probability proxy10 min
  2. Gamma: how fast delta changes9 min
  3. Theta: the daily cost of time10 min
  4. Vega and rho9 min

Take the module quiz

Module 4: Implied volatility

What IV means, IV versus realized, IV rank and percentile, a worked earnings crush, and the basics of term structure and skew.

  1. What implied volatility means9 min
  2. Implied versus realized volatility9 min
  3. IV rank and IV percentile8 min
  4. Earnings crush, term structure and skew11 min

Take the module quiz

Module 5: Long options done right

Buying calls and puts, choosing strike and expiry, the three ways to lose with the right direction, exit rules and rolling.

  1. Buying calls and puts9 min
  2. Choosing strike and expiry10 min
  3. Three ways to lose when you are right9 min
  4. Exit rules and rolling9 min

Take the module quiz

Module 6: Basic spreads

Vertical debit and credit spreads with full P&L tables, breakevens, max profit and loss, and which one fits which situation.

  1. Vertical debit spreads10 min
  2. Vertical credit spreads10 min
  3. Choosing between debit and credit spreads9 min

Take the module quiz

Module 7: Income strategies and their risks

Covered calls, cash-secured puts, the wheel, assignment and early exercise, dividends, tax notes, and why income is never free.

  1. Covered calls10 min
  2. Cash-secured puts and the wheel10 min
  3. Assignment, early exercise, dividends and taxes10 min

Take the module quiz

Module 8: Risk and mechanics

Sizing option positions, buying power and margin, liquidity and the bid-ask, pin risk, 0DTE realities, order types and legging, and a pre-trade checklist.

  1. Position sizing for options10 min
  2. Buying power, margin and liquidity10 min
  3. Pin risk and 0DTE realities9 min
  4. Order types, legging and the pre-trade checklist10 min

Take the module quiz

Educational content, not financial advice.