Options Academy

Lesson 1 of 9

Account Value

$10,000

Open P&L

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Trades Taken

0

Win Rate

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APEX · Apex Technologies Inc.

$100.00 +0.00 (0.00%)

Days to Expiry

30

Δ Delta

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Γ Gamma

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Θ Theta

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Vega

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IV %

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Build Your Position

Direction

Contract Type

Strike Price ($)

Position Preview — 1 contract = 100 shares

Premium

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Max Profit

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Max Loss

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Breakeven

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Choose a direction, type, and strike above — then Execute Trade to open a position.

Black-Scholes Calculator

Stock Price (S)

Strike Price (K)

Days to Expiry

Implied Vol (σ %)

Risk-Free Rate (%)

Call Price

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Put Price

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Delta Δ

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Gamma Γ

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Theta Θ /day

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Vega /1% vol

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Common Strategies

Covered Call

Own 100 shares, sell 1 call. Collect premium; cap your upside. The workhorse of income traders.

Income Low Risk Neutral–Bullish

Cash-Secured Put

Sell a put with cash in reserve. If assigned, you buy shares at a discount. If not, keep the premium.

Income Moderate Risk Neutral–Bullish

Bull Call Spread

Buy a call, sell a higher strike call. Defined risk, defined reward. You profit if the stock rises between the two strikes.

Bullish Defined Risk

Iron Condor

Sell an OTM put spread + sell an OTM call spread. Profit if stock stays in a range. Theta decay works for you.

Neutral Defined Risk Income

Long Straddle

Buy a call and put at the same strike. Profit from a big move in either direction — earnings plays, for example.

Volatility Theta Drag

Protective Put

Own shares and buy a put as insurance. Limits downside while keeping upside. Think of it as portfolio insurance.

Hedge Defined Risk

Pro Rules of Thumb

🎯

Sell options, don't just buy them. Statistically, 75–80% of options expire worthless. Premium sellers have time decay working for them every single day.

📅

Theta accelerates in the final 30 days. The decay curve is not linear — it's exponential near expiration. Sellers love the last month; buyers dread it.

📊

IV crush kills long-option buyers. Before earnings, implied vol is inflated. After the announcement, vol collapses — even if the stock moves the right way, your option may lose value.

⚖️

Manage winners early. Most professionals close short options positions at 50% max profit. Holding to expiry for the last $0.05 adds enormous tail risk for tiny reward.

🛡️

Delta is directional exposure. A 0.50 delta call moves roughly $0.50 for every $1 the stock moves. Know your deltas — they tell you how much stock you're effectively long or short.

🔥

Gamma risk spikes near expiration. On the last day, at-the-money options can go from $0.05 to $1.00 in minutes. Don't hold short near-expiry options through volatile events.

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