Options Trading for Beginners: Understanding Contracts & Pri

Learn how options contracts work, how they’re priced, and how value changes before using strategies.

What you’ll learn
Understand how options contracts work and what they represent
Identify ITM, ATM, and OTM options using simple examples
Calculate contract cost and understand why options are priced ×100
Explain how options gain or lose value, including time, and price movement

Requirements
No experience needed.

Description
This course is designed for beginners who want to understand how options trading actually works before jumping into strategies, indicators, or signals. Instead of overwhelming you with advanced tactics, this class focuses on the core mechanics that determine how options behave and how traders make or lose money.

You will learn what an options contract is and how it provides exposure to price movement without owning the underlying stock. We break down how options are priced and explain why each contract controls 100 shares so you can accurately understand cost and risk.

The course explains strike prices and how they relate to the current stock price, then walks you through in-the-money (ITM), at-the-money (ATM), and out-of-the-money (OTM) options using clear, real-world examples. You will also learn the difference between intrinsic and extrinsic value and how these components combine to form an option’s price.

In addition, we simplify key concepts like bid and ask prices, the spread, delta, and time decay so you understand how price movement and time affect value.

By the end of this course, you will have a clear foundation that allows you to understand option pricing, contract behavior, and profit mechanics so you can continue learning with confidence and clarity.

Who this course is for
New traders who want a clear, simple explanation of option contracts, pricing, and how value changes.