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Module 02 · Trading Academy
Options Mechanics
Options are leveraged instruments where the seller has every advantage by default. This module teaches you the contract math — Black-Scholes, the full Greeks set, IV mechanics, defined-risk structures, expiration plumbing, and the margin frame that decides what you can actually put on. Mechanics first, conviction trades later.
Chapters
8
Live
8
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2.1
What Is Options Trading?
Calls, puts, strikes, expirations — and the asymmetric payoff that makes options either a sniper rifle or a slot machine.
LIVE
15 min
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2.2
Options Greeks Demystified
Delta, gamma, theta, vega — what each one actually does to your P&L every minute the market is open.
LIVE
17 min
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2.3
Options Pricing & the Black-Scholes Framework
The lingua franca for option quotes. Five assumptions, the formula, a worked SPY ATM example, and where the model breaks.
LIVE
9 min
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2.4
The Greeks Deep Dive
Second-order Greeks — vanna, charm, vomma. How a hedger thinks during major events. Aug 2024 carry-unwind case study.
LIVE
9 min
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2.5
Implied Volatility — What It Is and Why It Moves
IV vs RV, term structure, earnings IV crush, why market-makers price flow not forecasts, and the rank vs percentile distinction.
LIVE
9 min
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2.6
Options Strategies — Spreads, Condors, Butterflies
Defined-risk structures matched to regime. Verticals, iron condors, butterflies. SPX FOMC-week iron condor worked example.
LIVE
9 min
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2.7
Early Assignment, Pin Risk & Expiration Mechanics
American vs European exercise, dividend assignment, Friday-close pin risk, OCC auto-exercise, and the rules to avoid surprises.
LIVE
8 min
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2.8
Margin & Buying Power for Options Traders
Reg T vs portfolio margin, BP math by structure, the margin-call mechanic, broker quirks and approval levels.
LIVE
9 min
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