I trade options but often find myself lost in the terminology and strategies.
I am looking for a simple guide that covers the basics clearly. Most resources seem overly complex for my needs.
A quick reference would really help me out.
Here are the basic options terms you need to know:
• Call - gives you the right to buy
• Put - gives you the right to sell
• Strike - the price you can exercise at
• Premium - what you pay for the option
• Expiry - when the contract expires
If you’re just starting out, stick with covered calls and cash-secured puts.
Three things matter: know your max loss upfront, remember time decay eats your premium daily, and don’t buy options under 30 days unless you enjoy throwing money away.
Most people overthink it. Just watch your premium shrink as expiry gets closer - that’ll teach you everything.
8 years in, the only cheat sheet I need shows how much I can lose per trade.
Investopedia has some good basics on options. Worth checking out.
Making my own cheat sheet worked way better than downloading random ones online.
I write down every term after screwing it up. Like when I mixed up ITM and OTM positions and lost $200 on a EURUSD put.
Now I’ve got a simple card with strike prices, Greeks, and entry rules taped right to my monitor.
Cheat sheets often make things confusing. Focus on the fundamentals first.
Understanding intrinsic value and time value can save you from many errors.
For the Greeks, delta and theta are the key ones to follow for simple trades.