Understanding Option Pricing

About this course

Why does an option cost what it costs? Learn intrinsic and extrinsic value, implied volatility, time decay and the Greeks — delta, gamma, theta and vega — and how they change as price and time move.

What you will learn

• Separate intrinsic and extrinsic value
• Interpret implied volatility and IV rank
• Use delta, gamma, theta and vega
• Anticipate how positions change over time

1. Module 1

   Introduction

   2 lessons
   • Welcome to Understanding Option PricingVideo · 9 min · Free preview
   • Course Roadmap and Completion RequirementsWritten lesson · 6 min · Free preview

2. Module 2

   Core Principles

   2 lessons
   • Options Contracts: Strike, Expiration and PremiumVideo · 9 min
   • Calls and PutsWritten lesson · 6 min

3. Module 3

   Position Structure

   2 lessons
   • Long vs Short OptionsVideo · 9 min
   • Covered CallsWritten lesson · 6 min

4. Module 4

   Financial Analysis

   2 lessons
   • Reading an Option ChainVideo · 9 min
   • The Greeks: Delta, Gamma, Theta and VegaWritten lesson · 6 min

5. Module 5

   Risk Management

   2 lessons
   • Sizing Options PositionsVideo · 9 min
   • Assignment and Early ExerciseWritten lesson · 6 min

6. Module 6

   Real-World Examples

   1 lessons
   • Example: Selling a Covered CallVideo · 9 min

7. Module 7

   Case Study

   1 lessons
   • Case Study: One Year of Covered CallsCase study · 10 min

8. Module 8

   Final Assessment

   2 lessons
   • Final AssessmentQuiz · 4 min
   • Applied AssignmentAssignment · 8 min

Member reviews

• “Good overview; the risk management module was especially valuable.”

  OTOlivia Thornton · Aug 25, 2026
• “Exactly the level of depth I was looking for. The downloadable tools are excellent.”

  MLMaya Lawson · Dec 28, 2025
• “Changed how I evaluate every deal I look at.”

  TLTrevor Lindgren · Dec 26, 2025
• “Clear, practical and immediately useful. The worked examples made the numbers click.”

  FAFrances Alvarez · Dec 7, 2025