Basics

[Brandon De Oliveira 0]

Here's what I have from my notes of studying options.

A call option is the right to buy 100 shares at the option strike price. (Bullish)

A put option is the right to sell 100 shares at the option strike price. (Bearish)

Strike price is known as a fixed price where a buyer could purchase or sell an option. 

Naked call - Selling a call option to collect the premium of a stock. This is known to be very risky at times, as your risk is unlimited and your profit is limited. (Bearish)

• You want the price to stay below the strike price that you've sold. 

Naked put - Selling a put option to collect the premium of a stock. This is known to be very risky at times, as your risk is unlimited and your profit is limited. (Bullish)

• You want the price to stay above the strike price that you've sold. 

I find https://www.optionsprofitcalculator.com/ to be very helpful when understanding your risk to reward on a certain stock.

I will try my best to update this topic as I continue my studies on options. 

Feel free to ask any questions and I'll try my best to answer them.