OptionsEDU™ Options Trading Education

Trading foreign exchange, commodity futures, options, precious metals and other over-the-counter or on-exchange products carries a high level of risk and may not be suitable for all investors. This material is meant to be used solely for educational purposes and is not meant to provide trading advice.



Beginner Level


Chapter 1

It All Begins with a Handshake

Call & Put Options

Size Matters - Contract Size

Currency Pairs

Long and Short Position

Chapter 2

FX Options Expire

European and American Style Options

Bid and Ask Prices

FX Call and Put Contract Specifications

In the Money, At the Money or Out of the Money

Intrinsic and Time Value

Payoffs and Cash Settlements

Chapter 3

FX option profits and returns


Naked versus covered or hedged short option positions

Margin trading leverages potential gains— and losses

When you trade on margin

Margin requirements for FX options vary

Level Review

Intermediate Level


Chapter 1

Multi-leg bullish and bearish strategies overview

Credit spreads and debit spreads
Vertical call spreads
Vertical bull call spread
Vertical bear call spread
Vertical put spreads
Vertical bear put spread
Vertical bull put spread

Chapter 2

Spreads (cont)
Calendar spreads
Market-neutral call calendar spreads
Bullish call calendar spreads
Market-neutral put calendar spreads
Bearish put calendar spreads
Market-neutral butterfly call spread
Market-neutral butterfly put spread
Bullish butterfly call spread
Bearish butterfly put spread

Chapter 3

Beyond Spreads: Straddles and Strangles



Going short versus going long in spreads, straddles and strangles

Types of orders
Market orders
Stop orders
Limit orders
Order type durations for GTC, EOD and GTW,
Contingent orders
OCO: One cancels the other.

Level Review

Advanced Level



Option values and risk management

The Greeks

Risk Management

What Is Hedging?

How Do Investors Hedge?

Advanced techniques

Level Review

Strategies for Spot Traders

Using Long Options as Protection

Using Short Options as Limit Orders

Using Short Options as Stop Orders

Using Options to ”Collar” a Spot Trade

Advanced Options Strategies


Bearish Options Trading Strategies

Buy Put

Sell Call

Bear Spread

Bear Diagonal Spread

Put Hedge

Bullish Options Trading Strategies

Buy Call

Sell Put

Bull Spread

Bull Diagonal Spread

Neutral Options Trading Strategies

Sell Straddle

Sell Strangle

Long Butterfly

Calendar Spread

Covered Call

Volatile Options Trading Strategies

Buy Straddle

Buy Strangle

Short Butterfly

Option Value Simulator (tool)


Option Calculator (tool)