Options Fundamentals Workbook: Reading Chains, Calculating Outcomes, and Planning Basic Trades

Understanding options conceptually and being able to sit in front of an options chain, select a specific contract, calculate your breakeven and maximum loss before clicking submit, and know exactly what you are committing to are different skills. This workbook course develops the practical skills that turn conceptual understanding into executable decisions. By the end of this course you will be able to read a live options chain and extract the data needed to evaluate any specific contract, calculate the breakeven price at expiration for a long call, long put, short call, and short put, estimate the maximum risk for a defined options position before entering it, select an expiration based on a defined holding period and implied volatility context, and build a pre-trade checklist that ensures you have evaluated all relevant parameters before placing an options order. What you will learn: - Options chain reading exercise: identifying bid/ask, open interest, volume, and Greeks from a sample chain - Long call outcome calculation: breakeven at expiration, maximum loss, and P&L at three price scenarios - Long put outcome calculation: breakeven at expiration, maximum loss, and P&L at three price scenarios - Short call outcome calculation: premium received, breakeven, and maximum loss (unlimited) — and why this differs from buying - Short put outcome calculation: premium received, breakeven, maximum loss, and assignment obligation - Expiration selection worksheet: matching expiration to holding period, event dates, and implied volatility term structure - Strike selection worksheet: comparing premium cost, breakeven distance, and probability of profit across strike prices - Pre-trade checklist: verifying underlying, direction, strike, expiration, maximum loss, and exit plan before entry Each section presents a worked example using a sample options chain, followed by a blank worksheet or checklist. Case studies illustrate common beginner errors — buying an out-of-the-money call without calculating how far the stock must move to reach breakeven, holding an option through expiration without a plan, selecting a low-volume option with a wide bid-ask spread. Reflection prompts ask you to complete each calculation before reviewing the worked version. This course is designed for options beginners who want practical, structured exercises to build trade-ready skills. Suitable for those who are new to options and have basic familiarity with stock markets. This course is informational and educational and does not constitute financial or investment advice.