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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 pricing is no longer just a “Black-Scholes” math problem—it’s a dynamic interplay between market math and the high-speed volatility of the current economic landscape.

While supply and demand ultimately set the price, the “Greeks” act as your dashboard, telling you exactly why your option’s value is moving.1

 

 

1. How Options are Priced (The Components)

The price of an option (the Premium) consists of two parts:

  • Intrinsic Value: The “real” value of the option if it were exercised today. (e.g., if a stock is at $110 and your strike is $100, the intrinsic value is $10).

  • Extrinsic Value (Time Value): The “extra” you pay for the possibility of future price movement.2 This is driven by time and volatility.3

     
     

     

2. The Greeks: Your Trading Dashboard4

In 2026, sophisticated platforms use AI to update these Greeks in real-time, but you must understand the logic behind them.

Delta (Δ): The Directional Compass

Delta measures how much an option’s price moves for every $1 change in the underlying asset.5

 

 

  • Range: 0 to 1 for Calls; 0 to -1 for Puts.6

     

     

  • Pro Use: Delta is also a rough estimate of the probability that the option will expire “in the money.”7 A 0.70 Delta call has roughly a 70% chance of success.

     

     

Gamma (Γ): The Accelerator

Gamma measures the rate of change of Delta.8

 

 

  • The Analogy: If Delta is speed, Gamma is acceleration.9

     

     

  • High Gamma Alert: Options close to expiration have high Gamma.10 This means your profits (or losses) can swing wildly with even a tiny move in the stock price as the clock runs out.11

     

     

Theta (θ): The Silent Thief (Time Decay)

Theta measures how much value an option loses every day simply because time is passing.12

 

 

  • The Rule: Theta is always a negative number for option buyers.13 It accelerates as the expiration date gets closer.

     

     

  • 2026 Strategy: Professional sellers love Theta; they “harvest” time decay by selling options to buyers who are gambling on a quick move.14

     

     

Vega (ν): The Volatility Gauge

Vega measures sensitivity to Implied Volatility (IV).15

 

 

  • Impact: If Vega is 0.20, and IV jumps by 1% (due to an upcoming earnings report or a geopolitical event), your option price will increase by $0.20, even if the stock price doesn’t move at all.16

     

     

  • Risk: High-IV environments in 2026 can lead to “Volatility Crush,” where the stock moves in your direction, but you still lose money because Vega collapsed after the event.17

     

     

Rho (ρ): The Interest Rate Greek

Rho measures sensitivity to Interest Rates.18

 

 

  • Current Context: With 2026’s fluctuating central bank policies, Rho is more relevant than in previous decades.

  • Effect: Higher interest rates generally increase Call premiums and decrease Put premiums.19 It is most impactful for long-dated options (LEAPS).20

     
     

     

3. 2026 Greek Summary Table

Greek What it Measures Why it matters in 2026
Delta Price Sensitivity Knowing your “win probability.”
Gamma Delta Sensitivity Avoiding “Gamma Squeezes” or sudden spikes.
Theta Time Decay Understanding the “daily cost” of your trade.
Vega Volatility Sensitivity Managing risk during “AI-driven” market shifts.
Rho Interest Rate Sensitivity Protecting long-term positions (LEAPS).

💡 Pro Tip: The “Greek Balance”

 

A successful 2026 trader doesn’t just look for a “good stock.” They look for a “good Greek profile.” For example, if you are bullish but don’t want to fight Theta (Time Decay), you might buy a “Deep In-The-Money” Call with a high Delta and low Theta.

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