Options Handbook

Your new "go-to" digital encyclopedia for clear, non-subjective answers to all things trading.

Trading Psychology

Risk-Averse Behavior Mental Models Prospect Theory Heuristics Herd Mentality

Automated Trading

What is Automated Trading? Why Automated Trading? Backtesting

Options

Options Trading Basics Option Contract Strike Price Call Options Basics Put Options Explained

Technical Analysis

Using Technical Analysis Stock Gap Fill the Gap Dead Cat Bounce Mean Reversion

Options Pricing

Intrinsic Value Extrinsic Value Option Moneyness (ITM, OTM, & ATM) Implied Volatility Black-Scholes Model

Options Settlement

Options Expiration Option Assignment Exercise Options European vs American Options Dividend Assignment Risk

Technical Indicators

SMA EMA MACD RSI Bollinger Bands

Brokers

Broker-Dealers Brokerage Firms Clearing Transactions 390 Rule

Portfolio Management

Beta Weighting Diversification Return Calculations Duration Performance Metrics

Stocks

Buying Stock Selling Stock Fractional Shares Stock Split Reverse Stock Split

Market Hours

Pre-Market Trading After-Hours Trading

Financial Markets

Exchanges CBOE

Economics

Inflation Bretton Woods Agreement Gold Standard Unemployment Modern Monetary Theory

Time Value of Money

Calculate Present Value Calculate Future Value Present Value of Annuity Future Value of Annuity Discounted Cash Flow Analysis

Financial Theories

Efficient Frontier Correlation Black Swan Event Unsystematic Risk

Stock Market

Regulatory Bull Market Bear Market Corrections

Investment Accounts

Margin Accounts Naked Option Margin Requirements Limit Order IRA vs 401k

Equity Investments

Common Stock Preferred Stock Index Fund vs Mutual Fund

Risk Management

Hedging Position Sizing Delta Neutral Rolling Options