The infographic titled “Understanding Option Trading” by SteadyOptions serves as a comprehensive visual guide for beginners and intermediate traders seeking to grasp the fundamentals of options trading. Presented in a structured, easy-to-follow format, the infographic breaks down complex financial concepts into clear, digestible components. It begins by defining what options are—financial derivatives that give traders the right, but not the obligation, to buy or sell an asset at a specified price within a certain time frame.

The infographic then outlines the two primary types: calls (buy options) and puts (sell options), explaining their use cases in bullish and bearish market conditions. Additional sections cover essential terms such as strike price, expiration date, premium, and intrinsic vs. extrinsic value. The infographic also introduces basic trading strategies including covered calls, protective puts, and spreads, making it easier for new traders to apply theoretical knowledge in practical settings.

With visually engaging charts and simplified language, this infographic is ideal for anyone looking to build a solid foundation in options trading. It empowers users to understand market behavior, manage risk, and make more informed trading decisions.