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Options 101

Calls, puts and premium — finally clear.

Beginner · 6 video lessons · 12 minutes · 5-question video exercise · certificate

What you'll learn

• You'll learn what an option really is, with a story you'll never forget.
• You'll walk through real call and put trades, with every dollar on screen.
• You'll see where the premium comes from, and why cheap options are a trap.
• And you'll learn to read an option chain and place a smart order.

Lessons

1. What an option really is (2 min) — An option lets you lock in a price today and decide later. Here's how it works, in plain English.
2. Call options: the right to buy (2 min) — Walk through a real call trade, from the order ticket to expiration, with every number on screen.
3. Put options: the right to sell (2 min) — Puts profit when stocks fall — and they can insure the shares you own. Here's both jobs, step by step.
4. What you're really paying for (2 min) — Every premium has two parts: what the option is worth now, and what you pay for time. Learn to split them.
5. In, at, or out of the money (2 min) — Where the strike sits versus the stock price changes everything — the price, the odds, and the risk.
6. Reading an option chain (2 min) — The option chain is the menu of every contract. Learn to read it and place a smart order in under three minutes.

Exercise and certificate

The course ends with a 5-question video exercise. Submit your answers, see your score and the reasoning instantly, and pass with 80% to earn the Options 101 certificate.

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