Learn to read a listed option contract and say precisely what each party has committed to - the topic candidates most often meet for the first time on exam day.

You'll identify the strike price, premium, and expiration date on a standardised equity option ticket, working through rights against obligations, the role of the Options Clearing Corporation, moneyness, exercise style, and settlement. The distinction that matters most arrives early: in the money describes a relationship to the strike, not a profit. You'll then draw and label a payoff diagram for a long call at expiration - built from a payoff table rather than memorised, so maximum loss, breakeven, and the unbounded upside are conclusions you can derive rather than a shape you recognize. Finally, you'll match a covered call or protective put to a fully specified objective and name the leverage and assignment risks each carries, learning what each overlay actually trades away. No prior options experience required. This course is educational and does not recommend any strategy. Passing the SIE is not a license or a securities registration. By the end of this course, you will be able to: - Identify the strike price, premium, and expiration date on a standardized equity option contract ticket - Draw and label a payoff diagram illustrating maximum gain, loss, and breakeven for a long call position at expiration - Recommend either a covered call or protective put strategy to match a stated bullish or bearish client outlook while articulating associated leverage and assignment risks