Options
From what an option contract is to how dealer hedging moves the market. Six chapters, in order.
Not investment advice. We do not provide investment strategies or recommendations. Everything in these articles exists to give you the quantitative and analytical tools to reach your own conclusions from real data.
Options 101 · Chapter 1
What is an option?
Calls and puts, American vs European exercise, and the four positions you can take — long and short, on each side.
ReadOptions 101 · Chapter 2
ITM, ATM & OTM explained
Strikes, intrinsic value and moneyness — the three labels every option carries, and why they decide how a contract behaves.
ReadOptions 101 · Chapter 3
The greeks, one by one
Delta, gamma, theta, vega and rho — what each one measures, in plain English, and which ones actually move your P&L.
ReadOptions 101 · Chapter 4
Implied volatility & the surface
What IV actually measures, why skew and term structure exist, and how both fold into the volatility surface.
ReadOptions 101 · Chapter 5
What is gamma exposure?
Option chains, delta, gamma and moneyness — and how dealer hedging turns into the gamma exposure (GEX) we render by strike.
ReadOptions 101 · Chapter 6
The gamma squeeze
How a market maker hedging a short call gets forced to buy into a rising market — the self-reinforcing loop behind a squeeze.
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