Task 1: Basic Principles of Stock Options
o What are options and where do they come from?
o Why are options a good idea?
o Where and how are options traded?
o What are the components of the option premium?
o Where do profits and losses come from with options?
Task 2: Basic Option Strategies
o How do you examine the risk and return of an option strategy using a graph? A spreadsheet? An equation?
o How do you use options to hedge or generate income?
o How do you take long and short positions?
o What are covered calls, covered puts, protective puts, put overwriting, fiduciary puts, and synthetic options?
Task 3: Option Combination and Spreads
o What are typical strategies to seek trading profit?
o What is a combination?
o What are straddles, spreads, strangles, and condors?