Options Trading  •  Lesson 6 of 6
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Options are a new and exciting way to engage with the market. They provide different benefits from more standard investments, like stocks, bonds, or ETFs. 


We covered how options are essentially contracts that allow traders to buy or sell stock at a predetermined price. They offer leverage, meaning that you can use a (relatively) small amount of money for a (relatively) larger return. They can offer higher reward, but that’s paired with higher risk. 

We’ve also explored the different types of options available on eToro Options, such as: 

  • Calls
  • Puts
  • Call spreads
  • Put spreads

You also learned the various measurements that go into the price fluctuations of an option (the Greeks.) These include:

  • Delta
  • Gamma
  • Theta
  • Vega

Building a diversified portfolio with options can help you tackle market swings in a new way. As you continue on in your options investing journey, remember to stay informed, do your research, and evaluate your strategy regularly. 

With the knowledge you have gained in this beginner’s course, you’re well on your way to achieving your financial goals and building a successful investment portfolio.

GREAT JOB!

Test yourself on what you have learned

Take A Quiz!

QUESTION 1 OUT OF

What are options?

Contracts that allow the buyer to buy or sell stock at a particular price
Contracts that guarantee a stock will make money
A non-binding agreement to buy stock on a certain date

Correct!

Incorrect!

A call option reserves the right for the buyer to __ stock at a particular price.

Buy
Sell

Correct!

Incorrect!

A put option reserves the right for the buyer to ____ stock at a particular price.

Buy
Sell

Correct!

Incorrect!

Delta communicates what to the options trader?

Gamma’s expected rate of change
How much the option’s price will change if the underlying stock price goes moves $1
How much value the option is losing every day
The price swings of the underlying stock

Correct!

Incorrect!

If your option does not reach the its strike price, you will:

Lose an amount of money proportional to how far away the stock is from your strike price
Lose all of your investment
Lose none of your investment
Gain an amount of money proportional to how far away the stock is from your strike price

Correct!

Incorrect!

A bull call spread involves:

Buying a call and selling a call at the same time
Buying a call and selling a put at the same time
Buying a put and selling a put at the same time
Buying a put and selling a call at the same time

Correct!

Incorrect!

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This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments.

This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results.

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