The Framework:

Introduction

Welcome to Part 2 of the Introduction to Options Trading course: The Framework.

In this section, we will apply the foundational concepts learned thus far to create a framework for understanding various option core strategies. We will explore the four basic strategies that form the building blocks of more complex options trading techniques.

Key Points

• Explore the construction of a 'T' chart to visualize the four basic option strategies: long call, short call, long put, and short put.
• Understand the characteristics of each basic strategy, including their directional bias (bullish, bearish, or neutral) and profit potential.
• Learn how these basic strategies serve as the foundation for more complex options trading techniques, which will be covered in subsequent lessons.