Introduction 2
Option Terms and Concepts 4
n What is an Option? 4
n Long 4
n Short 4
n Open 4
n Close 5
n Leverage and Risk 5
n In-the-money, At-the-money, Out-of-the-money 5
n Time Decay 6
n Expiration Day 6
n Exercise 6
n Assignment 6
n What’s the Net? 7
n Early Exercise/Assignment 7
n Volatility 7
Strategies 8
n Long Call 8
n Long Put 10
n Married Put 12
n Protective Put 14
n Covered Call 16
n Cash-Secured Put 18
n Bull Call Spread 20
n Bear Put Spread 22
n Collar 24