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elearning > Options explained

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Learn about the following:

Why options are often considered risky. The four basic option positions. In, at and out of the money. Intrinsic and time value. Simple uses for options.

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Course Summary

Options menuOptions call payoff profileOptions put payoff profile

Options in the moneyOptions payoffsOption strategies

  • 30 minutes
  • 9 question multiple choice test
  • Why options are often considered risky
  • The four basic option positions
  • In, at and out of the money
  • Intrinsic and time value
  • Simple uses for options

Options explained - the details

1. Why so much interest?

  • 4 reasons why options can cause concern
  • Basic terms: underlying, premium, expiry, strike
  • 4 option positions: long call, short call, long put, short put
  • Premium payments
  • The pay-off profiles

2. In, at and out of the money

  • When you would exercise, examples
  • Affect on price
  • Intrinsic value
  • Time value

3. Simple uses for options

  • Expecting price increases/decreases
  • Application, basic trades
  • Combining options, example
  • Why this is not risk free

4. Summary

5. Test

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