I learn stock options trading.
Welcome to the Terms section of Ruthless Accountability, where I document the essential vocabulary and concepts of options trading. Every field has its own language, and options are no different.
When I started learning options, the terminology felt overwhelming. Puts, calls, strikes, expiration dates, assignment, moneyness – each term was a puzzle piece I needed to understand.
This section breaks down each concept into practical, digestible explanations. No academic theory or unnecessary complexity – just clear definitions with real examples from my trading journey.
Whether you’re confused about the difference between buying and selling, wondering what “going long” really means, or trying to understand implied volatility, you’ll find straightforward answers here.
These aren’t just dictionary definitions. Each post includes examples with actual numbers, showing how these concepts apply to weekly income generation and risk management.
Master these terms, and options conversations suddenly make sense. The fearsome jargon becomes a useful toolkit for generating consistent returns.
Buying options is how most traders begin their options journey – you pay a premium upfront to acquire rights without obligations. When you buy an option, whether it’s a put or a call, you’re taking what’s known as a “long” position. This means you own the contract and have the right to exercise it, but … Read more
Call options are financial contracts that give the buyer the right, but not the obligation, to buy 100 shares of an underlying stock at a predetermined price (the strike price) by a specific date (the expiration date). Think of a call option like a reservation – just as you might come up with a deposit … Read more
Put options are financial contracts that give the buyer the right, but not the obligation, to sell 100 shares of an underlying stock at a predetermined price (the strike price) by a specific date (the expiration date). Think of a put option as an insurance policy – just as you might buy insurance to protect … Read more