Learn Options Trading

Master options strategies, Greeks, and trading concepts with clear explanations, practical examples, and lots of visuals.

Options Basics

Options Trading Explained

How options work, key terminology, and basic mechanics for beginners.

Call Options vs. Put Options

When to use each, how they profit, and how they lose money.

What Is Implied Volatility?

How IV affects option prices, expected move, IV rank, and IV crush.

Single-Leg Strategies

Long Call

Bet on a stock rising with limited risk.

Long Put

Bet on a stock falling with limited risk.

Short Call

Collect premium if a stock stays flat or falls. Unlimited risk.

Short Put

Collect premium if a stock stays flat or rises. Substantial risk.

Vertical Spreads

Bull Call Spread

Lower-cost bullish trade with capped profit.

Bull Put Spread

Collect premium with a bullish bias. Defined risk.

Bear Call Spread

Collect premium with a bearish bias. Defined risk.

Bear Put Spread

Lower-cost bearish trade with capped profit.

Stock + Option Strategies

Covered Call

Generate income on shares you own.

Protective Put

Insure your stock position.

Cash-Secured Put

Get paid to wait for a stock you want to buy.

Wheel Strategy

Cycle between puts and covered calls for income.

Volatility Strategies

Long Straddle

Profit from big moves in either direction.

Long Strangle

Cheaper way to bet on big moves.

Short Straddle

Profit when the stock stays near one price. Unlimited risk.

Short Strangle

Profit when the stock stays in a range. Unlimited risk.

Iron Condor

Profit when the stock stays in a range. Defined risk.

The Greeks

What Is Delta?

How much an option's price moves with the stock.

What Is Theta?

How options lose value over time.

What Is Gamma?

How fast delta changes as the stock price changes.

What Is Vega?

How IV changes affect option prices.

Advanced Concepts

Long Gamma vs. Short Gamma

How gamma exposure affects your P/L as the stock moves.

Why Theta Decay Isn't Linear

How options decay over time and why each option has its own curve.

Written by Chris Butler Founder, projectoption

Trading options since 2012. Building projectoption to explain the mechanics of options trading—now with 480,000+ YouTube subscribers and 36M+ views.