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Course Content
Options Fundamentals
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Call and Put Options Explained
Options Pricing and Greeks
Exercise and Assignment Process
Basic Options Strategies
In 2026, the most successful retail traders have moved away from "gambling" on high-leverage options and instead use Basic Options Strategies to create consistent cash flow and protect their existing portfolios.Here are the four essential strategies that form the foundation of a professional options toolkit.1. Covered Call (The Income Generator)This is the most popular strategy in 2026 for long-term investors. You sell a call option against shares you already own.Setup: Own 100 shares of a stock + Sell 1 Out-of-the-Money (OTM) Call.The Goal: To collect the Premium (cash) from the buyer while waiting for the stock to rise.The Outcome:Stock stays flat/down: You keep the shares and the cash.Stock hits the Strike: you sell your shares at a profit and keep the cash.Best For: Generating "synthetic dividends" on stocks you plan to hold anyway.2. Cash-Secured Put (The "Buy at a Discount" Strategy)Instead of buying a stock at the current market price, you get paid to wait for a better price.Setup: Have enough cash to buy 100 shares + Sell 1 OTM Put.The Goal: To get paid a premium to commit to buying a stock at a lower price (Strike Price).The Outcome:Stock stays above Strike: You keep the cash and try again next week.Stock drops below Strike: You are "assigned" the shares at the lower price you wanted, and your effective cost is even lower because of the premium you kept.3. Long Call & Long Put (The Directional Bets)These are the simplest forms of options trading, used to profit from a specific price move without owning the underlying asset.Long Call: You buy a call because you believe the price will go up significantly. It offers unlimited profit potential with limited risk (the premium paid).Long Put: You buy a put because you believe the price will go down. This is often used as "Insurance" to protect a portfolio during a market crash.4. Strategy Comparison TableStrategyMarket SentimentPrimary GoalRisk ProfileCovered CallNeutral to Slightly BullishIncome GenerationMedium (Stock can still fall)Cash-Secured PutNeutral to Slightly BullishBuy Stock CheaperMedium (Stock can still fall)Long CallAggressively BullishLeverage / ProfitLow (Only lose premium)Long PutAggressively BearishProfit / ProtectionLow (Only lose premium)5. The "Wheel" Strategy (The 2026 Professional Workflow)Many 2026 traders combine these into a cycle known as The Wheel:Sell Cash-Secured Puts until you are assigned shares.Once you own the shares, sell Covered Calls until the shares are called away.Repeat. This allows you to collect premiums at every stage of the market cycle.2026 Tactical Note: In today's high-volatility environment, professional traders typically look for 30–45 Days to Expiration (DTE). This provides the best balance between capturing Theta (Time Decay) and giving the trade enough time to work.💡 Student ExercisePick a "Blue Chip" stock (like Apple or Tesla). Look at the options chain for 30 days from now.How much cash would you receive today for selling a Covered Call 5% above the current price?If you did this every month, what would your "annual yield" be from premiums alone?
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Covered Calls and Cash-Secured Puts
Long Calls and Puts
Options vs Stock Trading
Advanced Strategy Combinations
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Spreads and Straddles
Iron Condors and Butterflies
Calendar and Diagonal Spreads
Risk Management and Psychology
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Position Sizing for Options
Managing Winners and Losers
Avoiding Common Options Mistakes
Course Overview: Options Trading Masterclass

In 2026, options trading has become a cornerstone of both retail and institutional portfolios. Understanding Calls and Puts is the first step toward moving beyond simple “Buy and Hold” and into strategic wealth management.

Call vs. Put Options: The Fundamentals

An option is a contract that gives you the right, but not the obligation, to buy or sell an asset at a set price (Strike Price) within a specific timeframe (Expiration Date).

1. Call Options: The “Right to Buy”

A Call Option is a bullish bet. You buy a call when you expect the price of an asset to increase.

  • How it works: You pay a small fee (Premium) to “lock in” a purchase price today.

  • The Goal: If the market price rises significantly above your strike price, you can buy the asset at the cheaper, locked-in price and sell it immediately for a profit.

  • Risk: If the price stays below your strike price, you simply let the option expire. Your only loss is the premium you paid.

2026 Example: You buy a call for “TechCorp” with a strike price of $200. If the stock jumps to $250, you exercise your right to buy at $200, instantly gaining $50 per share (minus your premium).

2. Put Options: The “Right to Sell”

A Put Option is a bearish bet or an insurance policy. You buy a put when you expect the price to decrease.

  • How it works: You pay a premium to “lock in” a selling price.

  • The Goal: If the market price crashes, you can still sell your asset at the higher, locked-in strike price.

  • The “Insurance” Use Case: Investors often use “Protective Puts” to shield their portfolios from sudden 2026 market volatility.

  • Risk: If the price goes up instead of down, you let the put expire worthless. Your loss is limited to the premium.

2026 Example: You own Bitcoin at $100,000. Fearing a crash, you buy a put with a strike of $95,000. If Bitcoin drops to $70,000, you can still sell yours for $95,000, saving yourself from a $25,000 loss.

3. Key Comparison Table

Feature Call Option Put Option
Market View Bullish (Price goes up) Bearish (Price goes down)
Right Granted Right to BUY Right to SELL
Your Goal Buy low, sell high Sell high, buy back low
Max Loss (Buyer) Premium Paid Premium Paid
Max Profit (Buyer) Theoretically Unlimited High (Price can’t go below $0)

4. Important 2026 Terminology

To trade like a pro this year, you must know these three states:

  • In-the-Money (ITM): The option has value. (Calls: Price > Strike | Puts: Price < Strike).

  • At-the-Money (ATM): The market price is exactly the same as the strike price.

  • Out-of-the-Money (OTM): The option has no “intrinsic” value and will expire worthless if the price doesn’t move.

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