Options Guide

Basic Options Terms Explained

In-the-Money, At-the-Money, and Out-of-the-Money

Learn the difference between being in the money, at the money and out of the money and how different stock prices and strike prices can affect put and call options.

What Are Options?

Learn the basic principles of options trading—what options are and how they work.

Options Assignment Explained

Learn what an options assignment is and what it means when an options seller gets assigned.

Options Strike Prices Explained

Learn what the strike price is and what it means for an options contract.

Options Pricing Explained

Learn what factors affect equity options prices and see how the underlying stock price, strike price and volatility impact the value.

Long Equity Options Explained

Learn what it means to have a long equity call or long equity put position.

Options Expiration Explained

Learn what happens when an option contract approaches expiration.

LEAPS: Long-Term Options Explained

Learn the basics of long term options contracts and how they're different from standard options contracts.

How Options Premium Affects Value

Learn what an options premium is and what factors affect the value of that option contract.

Closing Transactions

Learn the basics of a closing transaction and what it means for your position in an options contract.

Type, Style, Class and Series

There are four aspects of an option—type, style, class and series. Learn what each one means in this video.

Opening Transactions

Learn about what happens when you create or increase a position in a particular options contract.

Short Equity Call and Put Explained

Learn what it means to have a short equity call or short equity put position.

Interested in learning more options basics? Listen to our Beginner I Podcast that covers option trading tips. To open your options account, get started on Firstrade today!

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