Video Library

Options Pricing Explained

Learn what factors affect equity options prices.

Volatility Strategies

This rebroadcast from the OIC webinar program will provide an overview of strategies that an investor may utilize to potentially capitalize on changes in volatility.

How Iron Condors Can Be Used To Generate Income

An iron condor spread works by selling one call spread and one put spread at the same expiration date.

About The Options Industry Council

OIC is an industry resource provided by OCC that offers trustworthy education about the benefits and risks of exchange-listed options.

Option Fundamentals

A good foundational base starts with understanding the value of options. Whether it is short-term or long-term options, understanding the product and its characteristics is crucial in the options education journey.

Basic Terminology

The language of options is communicated using quantifiable terms; learn option terminology from basic concepts to more advanced option trading terminology.

Potential Benefits and Risks

Fundamental understanding of options is essential; uncover the connection between risk and reward principles.

What is an Option?

Introduction to the characteristics of options; learn about the different types of options and their distinct attributes.

Basic Pricing

One cornerstone to trading options is knowing basic pricing theory. This section delves into the different theoretical pricing methodologies.

Exercise and Assignment

It has been said that for every action (exercise) there is a reaction (assignment). Examine the process of option exercise and assignment.

Rights and Obligations

Options are contracts between parties based on rights and obligations. This section explains how option contracts can be defined from the perspective of the buyer's rights and seller's obligations.

Weeklys and LEAPS

In options, "time is money", whether its short-term or long-term. In this section, examine the difference between weekly and LEAPS options. LEAPS is a Registered Trademark of the Chicago Board of Options Exchange (Cboe).

Calculating Return on Capital

Are your trades capital intensive? Learn possible ways to optimize potential return on capital.

Greeks and Volatility

Understanding the Greeks can increase your understanding of options and their inherent risks.

Put/ Call Parity

One of the most intriguing and crucial relationships that exists in the options market is how the prices of stocks, calls, and puts relate to one another. This dynamic is known as Put/ Call Parity and understanding this relationship can lead to a deeper understanding of options prices.

Pricing Models

Learn various option pricing models used to quantify the value of options. This section reviews the inputs used in the various pricing models and the mathematical outputs they produce.

Debit and Credit Verticals

Considering spread trading? Learn about buying and selling options at the same time to create a trade that could potentially minimize your risk and maximize your profits.

Buying and Selling Calls

Strategy development starts with an acute appreciation of the risks and rewards of trading options. This segment examines the unique aspects of buying and selling call options.

Buying and Selling Puts

Are you bearish, bullish, or neutral? This section analyzes various put trading strategies that might fit with your goals.

Stock Option Strategies

Whether its protecting investments or for speculation, this section investigates a range of strategies that combine options with stock positions to generate trading profits and manage risk.

Covered Calls

This section explores some of the details of this widely used strategy.

Credit Spreads

This section focuses on the logistics surrounding selling credit spreads and incorporating a directional bias.

Credit Spreads

Looking for some potential trading profit but at the same time managing the amount of your money at  risk of loss? Then the credit spread might be a strategy to consider. Explore some of the details of spread selling with this collection of videos.

Cash-Secured Puts

Selling a cash-secured put is a potential method to purchase stock below the current stock price. This section reviews writing a put option as compared to placing a stock buy limit order below the market.

Calendar Spreads

This chapter explores calendar spreads consisting of near-dated options and a longer-dated options at the same strike price.

Covered Calls

Have an existing stock position? Delve into the risks and rewards of a covered call.

Cash-Secured Puts

Is there a way to potentially buy stock below current market price? The cash-secured put may be a way to do just that. Explore this collection of videos to learn more.

Calendar Spreads

In this section you will learn some possible ways long-term and short-term options can be used to create the calendar spread.

Bullish, Bearish and Neutral

What is your market outlook? This playlist introduces the concepts, theories, and strategies of directional trading.

Hedge and Acquire Stock

Whether it’s protection or an alternative to purchasing stock, learn about trading puts.

Stock Repair and Replacement

Best laid plans often go awry. Learn about strategies to potentially help manage trading risks and losses. 

Potential Income Generation

Examine the risks and rewards of writing options for potential income generation. This section covers cash-secured puts and covered calls as trading strategies. 

Implied Volatility Increase or Decrease

The rise and fall of volatility - learn the impact of Implied Volatility movement on option prices. 

Sharp Move Up or Down

Volatile markets may provide unique opportunities and pose unique risks for investors. This section explores various strategies investors can use to potentially take advantage of sharp moves in the market.

Managing a Position

Position management enables investors to take advantage of opportunities or to minimize risks and losses from unpredictable market changes.

Bullish, Bearish and Neutral

This section covers various options trading strategies designed for bullish or bearish outlooks.

Hedge and Acquire Stock

Learn how defensive option strategies may offer some protection for a portfolio. This section takes a look at puts, calls and different spread types as instruments that can hedge against market risk, potentially generate income or to acquire stock at pre-determined levels based on the strike price.

Stock Repair and Replacement

Despite the best research and planning, sometimes a position goes against you. This section explores some ways to potentially recover from losses and reviewing the risks associated with rolling.

Potential Income Generation

This section reviews options strategies designed for potential income generation. Learn about possible ways to generate income on stocks or ETFs already owned or how investors can potentially receive premium to buy stock below the current market.

Implied Volatility Increase or Decrease

Implied volatility is a key part of every option position and one that all investors should understand. Here we analyze how implied volatility affects an option position when the underlying stock soars, falls or goes sideways.

Sharp Move Up or Down

This section explains various option strategies designed to potentially capitalize on a large price moves in an option’s underlying security. 

Managing a Position

Markets move and forecasts change, which can create challenges for investors. This section examines possible ways to change existing positions in response to market and forecast shifts.

Calendar Spreads

Take your understanding of the calendar spreads to the next level. Explore the impact Greeks have, specifically Theta (time decay) and Vega (volatility), on the calendar spread strategy.

Diagonal Spreads

Diagonal spreads have elements of vertical spreads and calendar spreads in them. In this section, examine the potential flexibility and risk control measures necessary when considering the diagonal spread as a strategy. 

Straddles and Strangles

Straddles and strangles are similar and involve a call and a put with the same expiration. Yet, it's the differences between these two strategies that are significant. This chapter will cover various risks and reward from selling or buying these two strategies.

Condors and Butterflies

These advanced multi-leg strategies are typically used in trades that are centered on profits being contingent to underlying movement. This section examines the strike selection process an investor might use considering the underlying stock's trading range.

Ratios

A ratio trade is exactly that, a trade that has unequal number of long and short options; for example, a 1x2 ratio spread could represent long 1 option and short 2 options or vice versa. This section will detail the risks and rewards of a ratio spread as it applies to direction and/or movement in implied volatility levels.

Index Options

Understanding the distinctive properties of Index options is vital to trading them. This section will dive into the characteristics of Index Options; specifically, cash settlement vs. stock settlement and European vs American exercise styles.

Synthetics

Due to their versatility, options can be combined in any number of ways, including creating a strategy synthetically by combining two separate strategies. For example, long stock can be replicated by purchasing a call and selling a put of the same strike and expiration. This section identifies the various combinations of calls, puts, and stock to create synthetic positions.