Intermediate
Long calls and long puts for directional trades
Buying a call or put gives a defined option premium at risk, but selecting the right direction is only one part of a successful trade.
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Options Trading Guide
Understand calls and puts, analyse option prices and build strategies for direction, income and protection. Follow ten stages from contract basics to advanced structures and disciplined trade management.
Start with Calls and puts from both sides of the contract, then follow the next lesson links. Explore 40 lessons with worked examples, exercises and further reading.
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Directional Trading · All lessons
Directional Trading
Compare outright options, debit spreads and credit spreads using complete payoffs.
Intermediate
Bull call and bear put debit spreads
A debit vertical pairs a purchased option with a sold option of the same type and expiration. It reduces premium outlay in exchange for a capped...
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Intermediate
Bull put and bear call credit spreads
A credit vertical receives premium while accepting a bounded option payoff loss if the underlying moves through the protective strike.
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Intermediate
Choosing strikes and expirations for a trading thesis
Strike selection is a tradeoff among exposure, cost, time and the move required. Start with the research thesis rather than the smallest premium.
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