Options Investing E-learning

Have you ever thought of trading options?

For many investors, options may seem complicated or confusing.
To help you find your way around the basics of options trading, we have developed our “Options Investing E-Learning” video series.

Options Investing E-Learning modules
Contract Specifications

Contract Specifications

We take you through the basic terminology used when trading options.
In this first part of the training we discuss the most important elements of an options contract: the option price, the strike price, the underlying asset, the contract size, and the expiry date (the point in time at which you can make use of your right to buy or sell the underlying asset).

Position Management

Position Management

Understand the consequences of buying and selling options

The holder of an option has the right to buy or sell the underlying asset at a specified price, while the seller of the option has the potential obligation to buy or sell the underlying asset. Learn what it means to open a position and how it can be closed.

Intrinsic value

Intrinsic value

Learn about intrinsic value

The intrinsic value of an option represents the value of the option when exercised. It is the difference between the strike price and the market price. Find out how to calculate the intrinsic value and how it is different for call and put options. 

Premium & Valuation

Premium & Valuation

Learn how the option price, or premium, is determined and calculated

As the holder of an option has a right, and the seller has a potential obligation, the holder needs to pay a certain amount of money to the seller. The price of the option, or the premium, is determined by two sets of variables: contract-specific variables and market-specific variables. Discover how these variables impact the price of an option and how option prices are calculated.

Moneyness

Moneyness

Discover the concept of ‘moneyness’

Moneyness is the relationship between the strike price and the market price of the underlying asset during the lifetime of an option. Learn about the difference between ‘at the money’, ‘in the money’, and ‘out of the money’ and what each term means. 

Positions

Positions

Learn how options can be used in practice

Now that you have learned how options work, discover how they can be used in practice. Learn about the financial performance (profit or loss) of the positions you can take when trading options. Understand the different payoffs of calls and puts and long and short positions.

Options, a valuable asset in a diversified investment portfolio

An option is a contract that gives you the right to buy or sell a financial instrument at a pre-set price, until a specific point in time.
This instrument is known as the underlying asset, and may be a share, an index, or another asset type.

Options allow for a variety of  investment strategies

Options can serve as a protection for your investment in shares. In addition, several option strategies allow the investor to generate income when the market rises or when prices fall.

Euronext’s ”Options Investing E-Learning” series covers the 6 main topics you need to know when investing in options. This series of short animated videos is specifically designed for investors who are considering starting options trading.

Research
  • VBBO Trading - A best execution solution for retail investors or for market makers? (Research paper)
  • BoB versus Apex - No free lunch - trading on Apex more costly than on Best of Book (Research paper)

More Euronext Quantative Research

Contract lists

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Disclaimer

The Euronext Option Investing E-learning training (“the Training”) is provided as a service to the public for information purposes only and is not a recommendation to engage in investment activities. The Training is provided “as is” without representation or warranty in any kind. Whilst all reasonable care has been taken to ensure the accuracy of the content of the Training, Euronext does not guarantee its accuracy or completeness. Euronext will not be held liable for any loss or damages of any nature ensuing from using, trusting or acting on the information provided in the Training. Retail investors who wish to trade on the regulated markets operated by Euronext and require any information or advice in this regard should consult their financial intermediary. All propriety rights and interests in or connected with this Training shall vest with in Euronext and Entrima. No part of it may be redistributed or reproduced in any form. © 2021, Euronext N.V. – All rights reserved.