General Options Terminology: Rapid Fire

What this video covers

• Why a call on futures is the right to go LONG futures at the strike, and a put is the right to go SHORT futures at the strike, and why this is the most flipped pair on the exam
• How the grantor, the writer, and the seller all name the same party, the one who collects premium and takes the obligation if assigned
• The moneyness rules that run opposite for calls and puts: in-the-money (ITM), at-the-money (ATM), and out-of-the-money (OTM) definitions
• Why only in-the-money options carry intrinsic value, and how to split any premium into intrinsic value plus time value without overcounting intrinsic value
• The delta ranges for calls (0 to +1) and puts (0 to -1), and what delta measures as expected premium change per one-unit futures move
• The straddle versus strangle distinction on shared strikes versus different strikes, plus the spread rule that both legs must be the same option type
• How to build synthetic long futures, synthetic short futures, and a conversion from their component options and futures positions