Introduction to options contracts, rights vs obligations, and how derivatives function.
This scope is designed to help you build a practical understanding of Options. Lessons move from core definitions to real-world context and common failure points.
Reading in order is recommended, but each lesson stands on its own.
A rigorous overview of European and American option styles, covering definitions, market structure, economic rationale, valuation implications, settlement conventions, and real-world contexts without trading advice or strategy discussion. Readers learn how exercise style shapes rights, pricing, and operational risk across asset classes.
A clear guide to what an options chain is, why it exists, how it fits into market structure, and how to read the information displayed for calls and puts across strikes and expirations. Includes practical examples and cautions without strategies or recommendations.
A clear explanation of open interest and volume in options markets, how each is recorded and used within market structure, and why these measures exist from the perspective of clearing, liquidity, and contract life cycle, with practical examples that separate flow from outstanding obligations.
Options exist to transfer and reshape risk, to complete financial markets with state-contingent payoffs, and to support price discovery and financing. This article explains their economic function, institutional setting, and real-world context without discussing trading strategies.
An in-depth overview of the foundational risks embedded in listed options, including market sensitivities, liquidity, assignment, volatility surface dynamics, and the role of market structure in shaping these risks, with practical examples for context.
