1. The Basics of an Option

An option is a contract giving you the right—but not the obligation—to buy or sell 100 shares of a stock at a set price (the strike) before a specific date (the expiration). You pay a premium up front. If the market moves as you expect, you can exercise the option or sell it for a profit. If it doesn’t, you let it expire and your only loss is the premium.

Two main types of options

1. Call: you pay the premium to lock in a purchase price.
2. Put: you pay the premium to lock in a sale price.

2. Calls vs. Puts in Practice

Call Options

• You’re betting the stock will climb
• You have the right to buy shares at the strike price
• Upside potential: unlimited (as price rises)
• Risk: the premium you paid

Put Options

• You’re betting the stock will fall
• You have the right to sell shares at the strike price
• Upside potential: up to the strike price
• Risk: the premium you paid

Example: If you buy a $50 call on ABC when the shares trade at $48 and they rally to $60, you can buy at $50 and instantly capture $10 per share (minus the premium).

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3. A Step‐by‐Step Trade Walk‑Through

1. Select your setup
   Todd’s method begins with chart patterns, volume signals or earnings catalysts. You decide on a bullish or bearish view.
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2. Choose strike and expiration
   Factors include how aggressive you are, how long you want the trade to run and upcoming events. Todd’s checklist helps you pick a strike price that balances cost and probability.
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3. Pay the premium
   You might spend $200 for one contract (100 shares). This is your maximum risk.
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4. Monitor and adjust
   Every day, you compare the option’s daily move to the underlying stock. Todd’s program teaches you to use stop‑loss rules or roll your position to lock in gains or limit losses.
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5. Close or exercise
   If the option doubles in value you can sell it and lock in profits. If it moves against you, you follow the defined exit in Todd’s system. Every outcome is guided by the plan you build before entry.

4. Why Options Can Enhance Your Portfolio

Leverage with control
With options you control shares for a fraction of the cost. A $500 premium might control 100 shares worth $5,000. You only risk the premium, not margin calls.

Defined risk
Your worst‑case loss is the premium. That clarity lets you size positions precisely.

Flexible strategy set
Options let you tailor trades to any market view:

• Income: sell covered calls against stocks you already own.
• Hedging: buy puts to protect long positions.
• Direction: buy calls or puts to bet on price moves.
• Spreads: combine buys and sells to limit risk further.

Income and volatility plays
Todd’s students use credit spreads to earn steady income when markets trade sideways. They also deploy iron condors and butterflies around earnings to capture volatility premium.

5. How Wall Street Education Makes It Work

Todd Rampe distills complex strategies into clear, repeatable steps. In his course you get:

• Video lessons that show each trade from idea to exit.
• Live Q&A every week so you never trade alone.
• Proprietary templates for trade plans, risk rules and position sizing.
• Community support where you share setups and learn together.

By following a disciplined process—selecting high‑probability setups, defining risk, and executing with clear exit rules—you learn to trade options like a pro.

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Ready to Learn Options Trading?

Whether you’re brand new or looking to sharpen your skills, Wall Street Education offers the step‑by‑step guidance you need. Enroll today in our signature course SlingShot Trader and start trading options with confidence—every lesson backed by Todd Rampe’s proven methodology.