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For Option Traders

Eureka!

What it’s about: Here’s the journey we’ve created for options traders. We’ve broken it all down in the simplest terms, in the most convenient definitions. We give you everything you need to learn the basics, know how options work, the risks, and prevent bad outcomes before they happen.

Why it’s important: Many platforms have made options trading more accessible and it’s an exciting step forward for empowering everyday investors. However, we’ve also felt the pain of trying to figure it all out and realized it doesn’t need to be complicated. So, we’re building a better way and sharing it with you.

Key takeaway: You can do this. We’re just here to help.

Here is a quick rundown and a handful of lessons to try out so you know what to expect.

1 Learn the options lingo 7 lessons

Options trading is filled with technical words and fancy greek letters. First, we’ll break it all down so you can get comfortable with the lingo and basic concepts. You’ll be able to understand what experts are saying in the news, on social media, and on Archimedes.

Becoming an investor

Squirrels are investors. Are we investors?

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Speculating vs investing

Speculating is often confused with investing. How can tulips and GameStop teach us the difference?

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The lingo of options

What terms do we need to know before trading options?

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Breaking down options

I can see that options are very different than stocks. What is in an option that makes them so different?

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How to use options

Options contracts are very versatile. Learn the basics of using options and why you might buy them.

https://getmedes.com/lessons/how-to-use-options
The meaning of assignment

We know options are contracts. What do we need to know when we're selling them?

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Other types of derivatives

I know what stocks and bonds are, but what are derivatives? Are options derivatives?

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2 Know how they work 6 lessons

Making money trading options is a little more complicated than other types of investments. In this step, we’ll show you what to do with your opinions about the market and how you’ll profit when you’re right.

The value of an option

I've learned that options contracts represent a promise to buy or sell shares at a fixed price between two investors. What makes the promise valuable?

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Find the money

Discover how to think about the value of an option, and how it changes over time.

https://getmedes.com/lessons/find-the-money
Buying an option

The process of buying an option is more complicated than buying a stock. Figure out how to read the menu of option chains.

https://getmedes.com/lessons/buying-an-option
Introduction to exercising

I understand what it means to buy an option. When should I think about using my contractual right to buy or sell shares?

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When to exercise options

I understand that only profitable contracts should be exercised. When should I prepare to do so?

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Selling an option

Learn about the different ways to sell an option and the risks of writing an option contract.

https://getmedes.com/lessons/selling-an-option

3 Think about risk 11 lessons

Trading options without knowing the risks is like placing bets at the blackjack table without knowing the rules of how to play blackjack. You’ll look at some of those risks, how they're measured, and how we can manage them.

Creating a map when buying options

I want to start taking the first steps in buying options. How do I make a plan?

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Creating a map when selling options

I can understand and read the payoff diagrams when I buy call and put options. What about when I sell options?

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Introduction to the Greeks

I understand the basics of call and put options. What are the quantitative levers I need to understand?

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Volatility and options pricing

I understand that the value of the options is dependent on the value of the underlying stock. How do changes in the stock affect the option value?

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Price movements and what's at risk

Look behind the scenes to discover how to use the Greek delta to estimate how the option’s price will change and your odds of making money.

https://getmedes.com/lessons/price-movements-and-whats-at-risk
Options pricing

When deciding to buy an option, how do I make sense of the current cost?

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Margin Accounts

We played on seesaws as kids. How can we make our money do more work with less effort?

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Greeks with Bryce — What is Delta?

What is Delta? How should we think about it?

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Greeks with Bryce — What is Theta?

What is the time optionality and the greek Theta?

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Creating a long put payoff diagram

How to make a quick payoff diagram for your put option in less than 5 minutes.

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Creating a long call payoff diagram

How to make a quick payoff diagram for your call options in less than 5 minutes.

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4 Avoid common pitfalls 8 lessons

You could lose all of your money from a single mistake trading options. Before you place any trades, we’ll show you how to dodge the traps that catch first-time traders by surprise.

Options and margin

I am starting to understand the risk associated with options. Could there be a case where I end up losing more than I anticipated?

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The decay of time

Discover the effects of the Greek theta on an option’s price over time.

https://getmedes.com/lessons/the-decay-of-time
Naked strategies

When writing contracts, what does it mean to write naked positions? When should I consider using this strategy?

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Covered strategies

When writing contracts, what does it mean to write covered positions? When should I consider using this strategy?

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Wash sale rule

Our friends tell us to sell high and buy back low. What's the risk of frequent trading?

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Brokerage accounts

What is a brokerage account and why do we need one to start investing?

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Picking a brokerage account

There are tons of brokerages out there. How do we choose one that fits our needs?

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Account opening process

We're ready to open a brokerage account. What do we need?

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Get started!
  • Personalized learning guides
  • 170+ free interactive lessons
  • Hours of fun gameplay
  • Helpful product recommendations
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What people are saying

“Five star learning experience. Friendly for anyone starting to learn about finance or already with intermediate level knowledge.”
Eric Pan

"This is a great app that has a plethora of knowledge about the world of investing. Even though I already had some basic knowledge about stocks, bonds, ETFs, etc., I feel that this app helped take my understanding of the subjects to a new level."
MJFAN29RIP

"I've been investing for a few years, and I always look for different sources of education about investments. I've found Archimedes, and I'm pretty excited about the platform. The app is very interactive and it makes the learning process fun and easy! I've finished one of the lessons, and I'm ready to start a new one. It's also a great source for beginners who want to learn how to invest. Highly recommend it!"
Diana S$