OptionsTable of Contents Introduction Types of Options Call Option – Exercising and Trading Put Option – Exercising and Trading Option name- Parts & Abbreviations Interpretation Gross Profit and Net Profit on Options Buying a Call option Buying Call Options – How it is done? Buying a Call Option – Graphic Presentation Review Questions BUYING A PUT OPTION Buying a Put Option- how it is done Buying a Put option – graphic presentation Correct/Incorrect Questions SUPPLEMENTS AND TERMS Where Options Come From Zero-Sum Game The Risk for Option-Writers Internal Value of an Option Time Value of the Premium Significance of the Time Value in the Premium Review Question WRITING A CALL OPTION Writing a Call Option Freezing the Loss The Reasons for Writing Call Options Writing a Call option: Graphic presentation WRITING A PUT OPTION Writing a Put Option The Reasons for Writing a put Option Review Question OPTIONS STRATEGY Options Strategy Buying a House Using an Option Strategy Explanation of Terms Selling a House Using an Option Strategy Introduction Options Introduction
