Options Trading

🌱 Beginner Topics

📚 Intermediate Topics

4. The Greeks

Delta, gamma, theta, vega, and risk management

5. Option Strategies

Spreads, straddles, covered calls, and more

6. Hedging Techniques

Portfolio protection and risk management

🎓 Expert Topics

7. Volatility & Skew

Advanced volatility concepts and trading

8. Market Makers & Flow

Understanding dealer positioning and hedging

9. Expiration Mechanics

Pin risk, max pain, and expiration dynamics

Strike Price & Expiration Recap

Test your knowledge of strike prices and expiration concepts. Select the best answer for each question.

What is a strike price?

The current market price of the stock The predetermined price at which an option can be exercised The price you paid for the option The price at which the stock opened

When is a call option considered 'in-the-money' (ITM)?

When the strike price is above the stock price When the strike price equals the stock price When the strike price is below the stock price When the option is profitable

What happens to an unexercised option at expiration?

It automatically converts to stock It expires worthless It gets extended for another month It gets refunded

Which type of options can be exercised at any time before expiration?

European options American options Asian options LEAPS options

When do monthly options typically expire?

The last day of each month The first Friday of each month The third Friday of each month The 15th of each month

What is 'pin risk' in options trading?

The risk of losing your trading PIN When a stock tends to gravitate toward strike prices at expiration The risk of early assignment The risk of the option being delisted

Which options typically have the most liquidity?

Weekly options Monthly options Quarterly options LEAPS