1) OPTION BASICS TERMINOLOGY

1. BUYER & SELLER OF OPTION

2. CALL& PUT OPTION

3. OPTION PREMIUM

4. OPTION STIKE PRICE

5. CONTRACT SIZE/ CONTRACT CYCLE.

2) MONEYNESS OF OPTION

OTM (OUT OF THE MONEY)

ATM (AT THE MONEY)

ITM (IN THE MONEY)

3) OPTION GREEKS

DELTA

THETA

VEGA

GAMMA

4) OPTION CHAIN ANALYSIS.

5) OPTION STRATEGIES

1. SPREAD

1. BULL CALL& PUT SPREAD

2. BEAR CALL &PUT SPREAD.

2. STRADDLE.

1) LONG STRADDLE.

2.SHORT STRADDLE.

3. STRANGLE

1) LONG STRANGLE

2) SHORT STRANGLE

4. IRON FLY

5. IRON CALENDER

6. DIRECTION BUYING & SELLING

7. NON-DIRECTIONAL BUYING & SELLING

8. NEWS/ COMPANY RESULT ANNOUNCEMENT TRADING