Foundation
Options Basics
Learn how options, calls, puts, chains, strikes, expiration, moneyness, premiums, assignment, volume and open interest work through sourced explanations and examples.
Start here if you are new to options or want to refresh the foundations. Learn what calls and puts represent, how to read a chain, what strike and expiration mean, and how premium, moneyness, volume and open interest affect a contract.
Explore Options Basics
What Are Options?
A plain-English explanation of options contracts, rights, obligations, premiums and expiration. Includes a worked example, risks and primary sources.
Read moreCalls vs Puts
Understand how call and put rights, obligations and directional exposure differ. Includes a worked example, risks and primary sources.
Read moreHow to Read an Options Chain
Learn the expirations, strikes, bids, asks, volume, open interest, Greeks and IV shown in an options chain. Includes a worked example, risks and primary sources.
Read moreStrike Price and Expiration
Learn how the strike and expiration define option rights, time horizon and payoff boundaries. Includes a worked example, risks and primary sources.
Read moreOptions Moneyness
Understand in-the-money, at-the-money and out-of-the-money calls and puts. Includes a worked example, risks and primary sources.
Read moreOption Premium, Intrinsic Value and Time Value
Break an option premium into intrinsic and extrinsic components and understand why they change. Includes a worked example, risks and primary sources.
Read moreExercise vs Assignment
Understand the difference between exercising an option and being assigned as an option seller. Includes a worked example, risks and primary sources.
Read moreOpen Interest vs Volume
Learn what option volume and open interest measure and what they do not prove. Includes a worked example, risks and primary sources.
Read moreFrequently asked questions
Where should a beginner start?
Start with what options are, then calls versus puts, before learning to read an options chain and compare strike and expiration choices.
Is this personalised financial advice?
No. The learning centre provides general education and worked examples, not personal recommendations or trade instructions.
Sources
Verified July 16, 2026