All About Options Trading: Theory for Professional Traders

Calls, puts and moneyness

This guide sets out options theory from the ground up, starting with call and put contracts and the idea of moneyness. It explains how these concepts determine what an option is worth at a given point in time.

Greeks and volatility

Delta, gamma, theta and vega are introduced as the measures that describe how an option's value responds to the underlying market. Volatility is treated as a central input, since the same contract can be worth very different amounts as expectations change.

Strategy and settlement

Strategies are built from these components, and the guide ends with the physical settlement process. Reading the Greeks alongside settlement rules helps you see what a position will actually require at expiry.