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Options - Module 2

Reading options markets

Reading a chain: bid-ask by strike, volume against open interest, expiry columns and moneyness. Why quoted prices are per share but contracts are for 100. Implied volatility appears as a number here - it becomes a tool in module 8.

9 lessons, about 55 minutes

  1. 1The option chain6 min
  2. 2The bid-ask reality6 min
  3. 3Open interest and volume6 min
  4. 4The payoff diagram: reading the shape6 min
  5. 5Reading implied volatility7 min
  6. 6The term structure of expected movement6 min
  7. 7Delta as probability shorthand6 min
  8. 8Liquidity, and the underlying beneath6 min
  9. 9What the options market prices6 min