For Option Traders
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.
Squirrels are investors. Are we investors?
Speculating is often confused with investing. How can tulips and GameStop teach us the difference?
What terms do we need to know before trading options?
I can see that options are very different than stocks. What is in an option that makes them so different?
Options contracts are very versatile. Learn the basics of using options and why you might buy them.
We know options are contracts. What do we need to know when we're selling them?
I know what stocks and bonds are, but what are derivatives? Are options derivatives?
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.
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?
Discover how to think about the value of an option, and how it changes over time.
The process of buying an option is more complicated than buying a stock. Figure out how to read the menu of option chains.
I understand what it means to buy an option. When should I think about using my contractual right to buy or sell shares?
I understand that only profitable contracts should be exercised. When should I prepare to do so?
Learn about the different ways to sell an option and the risks of writing an option contract.
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.
I want to start taking the first steps in buying options. How do I make a plan?
I can understand and read the payoff diagrams when I buy call and put options. What about when I sell options?
I understand the basics of call and put options. What are the quantitative levers I need to understand?
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?
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.
When deciding to buy an option, how do I make sense of the current cost?
We played on seesaws as kids. How can we make our money do more work with less effort?
What is Delta? How should we think about it?
What is the time optionality and the greek Theta?
How to make a quick payoff diagram for your put option in less than 5 minutes.
How to make a quick payoff diagram for your call options in less than 5 minutes.
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.
I am starting to understand the risk associated with options. Could there be a case where I end up losing more than I anticipated?
Discover the effects of the Greek theta on an option’s price over time.
When writing contracts, what does it mean to write naked positions? When should I consider using this strategy?
When writing contracts, what does it mean to write covered positions? When should I consider using this strategy?
Our friends tell us to sell high and buy back low. What's the risk of frequent trading?
What is a brokerage account and why do we need one to start investing?
There are tons of brokerages out there. How do we choose one that fits our needs?
We're ready to open a brokerage account. What do we need?
- Personalized learning guides
- 170+ free interactive lessons
- Hours of fun gameplay
- Helpful product recommendations
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$