Introduction to Call Options

Introduction to Call Options

The Call Option is the most basic and simplest Option to understand. We introduce what a Call Option is simple language that anyone can understand. We use real-world examples to explain how a Call Option would work in real life. This example should make it absolutely clear what a Call Option is. We also introduce the concept of Option buyers and sellers, and how different each one's risk and reward profile is. Several basic Options concepts are also introduced in this course, so this course is a prerequisite for all the other courses in this module. We extend the real world example of Call Options to real Options on Apple (AAPL) on a live trading platform

What you will master

• What are Options, and what are Call Options
• What are the fundamental differences between Stocks and Options
• What are the factors affecting Option prices
• An excellent real world example of a Call Option
• What are At-the-money (ATM), Out-of-the-money (OTM) and In-the-money (ITM) Options
• The risk profile of a buyer and seller seems to be skewed - why is this ?
• What are the rights and obligations of the buyer and seller of Options
• What are the things going for the seller of an Option
• Breakeven analysis and Profit and Loss graphs for buyers and sellers
• How real Options are represented in the financial markets
• Translate real world Options into AAPL Call Options

• Course Curriculum