Day 1: Introduction to Options

Lesson /35 | Study Time: 45 Min
# Introduction to Options

## What are Options?
- Calls: Rights to buy at strike price
- Puts: Rights to sell at strike price
- Contract specifications and multipliers
- Options as derivatives

## Options vs. Stocks
- Leverage and capital efficiency
- Limited risk for buyers
- Time decay factor
- Flexibility in strategy

## Basic Terminology
- Strike price (exercise price)
- Expiration date and time decay
- Premium components
- Contract size and multipliers

## Key Concepts
- Rights vs obligations
- Exercise and assignment
- Settlement procedures
- Important dates and deadlines