Trading · Options (educational)

Learn to read an option like a pro: simulate the payoff, understand your risk in dollars, study complete trade tickets, and practice with paper trades saved in your browser. The method teaches; you decide.

⚠️ Examples and simulations for educational purposes. These are not investment recommendations or real orders. Options carry risk of total loss of the premium (and more in some structures). Trade only in your broker with money you can afford to lose.

🎫 Build your option

Type the symbol and we'll pull the underlying's live price.

Symbol (underlying)

Underlying price: —

Type

Direction

Strike

Premium (per share)

Days to expiration

Contracts (×100)

IV estimate (%)

Show equivalent debit spread

✔️ Pre-trade checklist

I understand my max loss in $ and can afford it. The liquidity (bid/ask, volume, OI) is sufficient. The size is reasonable for my account (not all in one). I know which event (earnings, macro) lands before expiration. I'm clear on my thesis and what invalidates it.

📈 Payoff at expiration

Profit / loss in dollars depending on where the underlying ends up. The green zone is profit; the red one, loss.

Max loss

—

Break-even

—

Max gain

—

If at expiration the underlying is at $—

PnL: —

——

Trade tickets — the anatomy of an option

Each ticket is a complete analysis example (plausible, illustrative data). Study it, load it into the simulator, or take it to paper. This is how you read an idea: structure, cost, risk, thesis, and what invalidates it.

My paper trades

Risk-free practice: log simulated entries, track their PnL, and close them. They're saved in your browser (localStorage).

🔒 This is NOT connected to Robinhood or any broker. It's only an educational simulation inside the Faro. If you clear your browser data, it's lost — use Export JSON to keep it.

Open trades

Unrealized PnL

Realized PnL (closed)

How to read the options chain (quick)

Strike: The agreed price. With a call you buy the right to buy at that price; with a put, to sell.
Expiration (exp): When it expires. The further out, the more expensive (more time value). Time value melts away toward expiration (theta).
Bid / Ask / Mid: Bid = what they offer to pay you; Ask = what they ask from you. The mid (midpoint) is a fair reference for the real price. A wide bid/ask spread = low liquidity = worse execution.
Premium: What you pay (or receive) per contract, per share. Multiplied by 100. It's your cost and, when buying, your max loss.
Volume / Open Interest (OI): How much is traded and how many live contracts exist. High = liquid. Low = hard to get in/out at a good price.
IV (implied volatility): The "price of fear": how much swing the market is pricing in. High IV = expensive options. It usually rises before earnings and drops after ("IV crush").
Break-even: The underlying price where you neither gain nor lose. Long call: strike + premium. Long put: strike − premium.
Collateral: What the broker holds if you sell options (short). Selling naked can carry huge losses; it's not for beginners.

Faro Económico Meritocrático · Trading · Options (educational) — Your taxes pay for it. Your investment earns it back.
Underlying price via the Faro worker. Option marks: entered by you or estimated theoretically (Black-Scholes). Not financial advice.