[Series 65] 32, Options Basics Calls and Puts

[Series 65] 32, Options Basics Calls and Puts

From Open Exam Prep by Ran Chen, EA, CFP®

April 25, 2026 · 3 min

About this episode

This episode covers the basics of options trading, focusing on calls and puts, including their rights, values, and key terminology.

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The fundamental rights of call and put option buyers. - How to calculate an option's intrinsic and time value. - The distinction between an option being "in-the-money" versus the breakeven point. - Key terminology for option buyers and sellers that you will see on the exam. - A simple mnemonic to remember the desired market direction for call and put buyers. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

People in this episode

Host: Ran Chen

Topics covered

  • options trading
  • call options
  • put options
  • intrinsic value
  • time value
  • financial terminology

Keywords

  • options basics
  • call options
  • put options
  • intrinsic value
  • time value
  • in-the-money
  • breakeven point
  • financial exam prep

Mentioned in this episode

Organizations: Open Exam Prep, YouTube Channel, open-exam-prep.com

Products: EA license, Insurance and Securities licenses, CFP® designation

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