Practice
Mixed recall across each track. Answering is where the material sticks — and the explanation under a question you got wrong is worth more than the one you got right.
Course contents73 lessons · 28 questions
Foundations
Contract mechanics, the multiplier, moneyness, and what actually settles on expiration day.
- 01
A contract is quoted at $3.40. You sell two. How much cash arrives, ignoring fees?
- 02
You sold a put and the buyer exercises. What are your options?
- 03
A stock trades at $47. Which contract is in the money?
- 04
You buy a $50 call for $2.00. Where is breakeven at expiration?
- 05
A stock trades at $50. A $55 put is quoted at $6.20. How much of that is extrinsic?
- 06
You sold a $50 put for $1.50. The stock closes at $49.98 on expiration day.
- 07
Where is extrinsic value at its maximum?
- 08
Which position carries genuinely unlimited theoretical risk?
- 09
After being assigned on a $100 put for which you collected $2.50, what is your effective cost per share?
- 10
A strategy wins 90% of the time. What does that tell you about profitability?
The Greeks
Delta, theta and the rest — what each number predicts and where each one misleads.
- 01
You are short one put with delta −0.25. The stock falls $2. Roughly what happens?
- 02
You hold 100 shares and are short two 0.20-delta puts. Total share-equivalent exposure?
- 03
Delta reads 0.30. How should you treat that as a probability of assignment?
- 04
You are short a contract with theta of $6/day. It is Friday afternoon. Decay by Monday's open?
- 05
An option has 60 days left. Roughly how much time value remains at 30 days?
- 06
Which short option collects the most theta per day, all else equal?
- 07
What is theta on a deep in-the-money short put a week from expiry?
- 08
Raising implied volatility does what to the delta curve across strikes?
Income Strategies
Cash-secured puts, covered calls, strike selection and rolling — the core of premium selling.
- 01
You sell one $80 put for $2.10. Cash required, and breakeven?
- 02
The stock finishes exactly at your $80 strike. What happens?
- 03
A CSP shows 34% annualised. What is the most accurate reading?
- 04
You own shares at $50 and sell a $55 call for $1.20. The stock finishes at $70. Your profit?
- 05
Why is selling a covered call below your cost basis usually a mistake?
- 06
Strike A shows 18% annualised, strike B shows 34%. What can you conclude?
- 07
You buy back a put for $810 and sell a new one for $900. What did this roll accomplish?
- 08
A roll collects $90 for 30 more days on $9,500 of capital. How should you judge it?
- 09
Which filter should you apply before choosing a delta for a cash-secured put?
- 10
What is the strongest reason to roll rather than take assignment?