Basics
Bid & ask
The bid is what buyers currently offer; the ask is what sellers request. Their difference is the bid–ask spread.
The learning deck
Learn Trading
The language, patterns and strategies behind the cards.
14 lessons
Basics
Volume & liquidity
Volume counts shares or contracts traded during a period. Liquidity describes how easily you can trade without moving the price substantially.
Basics
Spark
An event that may change expectations about a company, such as earnings, a contract or a regulatory decision.
Basics
Bullish & bearish
Bullish describes an expectation of rising prices; bearish describes an expectation of falling prices.
Basics
Market & limit orders
A market order seeks execution at the available price. A limit order sets the highest buy price or lowest sell price you will accept.
Basics
Calls & puts
A call gives its buyer the right to buy an underlying asset at the strike. A put gives the right to sell. Rights expire on a specified date.
Basics
Strike & expiration
The strike is the contract’s exercise price. Expiration is when the option’s rights end. DTE means days to expiration.
Basics
Premium & time decay
Premium is the price of an option. Time decay describes the erosion of its time value as expiration approaches, all else equal.
Basics
Implied volatility
Implied volatility is the volatility level reflected in an option’s market price. It describes priced-in uncertainty, not direction.
Patterns
Support & resistance
Support is an area where buying has previously slowed declines. Resistance is an area where selling has previously slowed advances.
Patterns
Breakout
A breakout occurs when price moves beyond a previously observed range or level.
Patterns
Trend & pullback
An uptrend often forms higher highs and higher lows. A pullback is a temporary move against the prevailing trend.
Patterns
Double bottom
Two lows near a similar area, separated by a rebound, form a potential double-bottom pattern.
Patterns
Candlesticks
A candle summarizes open, high, low and close for a period. Its body spans open to close; wicks show the extremes.
Keep learning
Educational examples only, not trade recommendations. Options involve risk and are not suitable for every investor. Examples omit commissions, fees and taxes.