Lesson
Options Basics
An options contract gives you the right — but not the obligation — to buy (Call) or sell (Put) 100 shares of an underlying ETF at a specific price before a specific date. You risk only the premium you pay.
FAQ
Frequently asked
- Does TradeChoice ever place a trade without me?No. Every options trade requires your explicit Approve click. TradeChoice never executes on your behalf.
- Is this real trading right now?Everything is simulation until brokerage connectivity ships. All decisions and metrics are labelled 'Simulation'.
- Do you take custody of my money?No. Funds and positions remain fully in your brokerage's custody. TradeChoice only routes trades you personally approve.
- Can I cancel anytime?Yes. Cancel from Profile → Subscription. No hidden lock-in.
- What does the AI Confidence score mean?It shows how closely the current setup matches the conditions used by TradeChoice's strategy model — a signal quality score, not a profit guarantee.
Glossary
Every term, in plain English
- Call Option
- A contract giving the buyer the right to buy 100 shares of the underlying at a set price (the strike) before it expires.
- Put Option
- A contract giving the buyer the right to sell 100 shares of the underlying at a set price (the strike) before it expires.
- Strike Price
- The reference price on the option contract. It sets the level at which the contract becomes valuable at expiration.
- Expiration
- The final date the option contract exists. After that date, it expires and may become worthless.
- Premium
- The per-share price of the option. Since one contract represents 100 shares, one contract costs roughly premium × 100 in dollars.
- Contracts
- The number of option contracts in the position. Each contract represents 100 shares of the underlying.
- Estimated Total
- The approximate dollar amount required to open the position (premium × 100 × contracts), before broker fees.
- Estimated Risk
- A simplified indicator of the trade's risk based on implied volatility, time until expiration, and characteristics of the strategy.
- AI Confidence
- This score shows how closely the current setup matches the conditions used by TradeChoice's strategy model.
- AI Confidence
- This score shows how closely the current setup matches the conditions used by TradeChoice's strategy model.
- Strategy
- The named playbook TradeChoice used to identify this opportunity (e.g. SPY Momentum, QQQ Growth Trend, IWM Mean Reversion).
- Maximum Position Size
- The largest dollar amount you allow TradeChoice to allocate to any single recommendation.
- Manual Review
- Every AI trade recommendation requires your explicit approval. TradeChoice never places trades automatically.
- AI Scanner
- The background engine that continuously scans SPY, QQQ, and IWM for setups matching TradeChoice's strategy playbooks.
- Email Notifications
- Email alerts sent when a new AI recommendation lands, and when your account requires attention.
- Brokerage Connection
- Live execution through a supported brokerage. Until this is available, every recommendation is simulation-only.
- Market Snapshot
- The technical conditions the AI observed when it flagged this signal — trend, RSI, volume, and recent price action.
- RSI
- The Relative Strength Index — a momentum indicator scaled 0–100. Above 70 is generally overbought; below 30 is generally oversold.
- Market Outlook
- Market Outlook describes TradeChoice's expectation of how the underlying market is likely to behave during the expected life of this trade. Possible outlooks include Bullish, Bearish, Neutral, Breakout, Momentum, Mean Reversion, and Trend Continuation.
- Market Outlook
- Market Outlook describes TradeChoice's expectation of how the underlying market is likely to behave during the expected life of this trade. Possible outlooks include Bullish, Bearish, Neutral, Breakout, Momentum, Mean Reversion, and Trend Continuation.
- Market Outlook
- Market Outlook describes TradeChoice's expectation of how the underlying market is likely to behave during the expected life of this trade.
- AI Confidence
- This score shows how closely the current setup matches the conditions used by TradeChoice's strategy model.
- Max Risk
- The largest dollar amount the position can lose from open to expiration under normal conditions.
- Expected Hold
- The model's estimate of how long the trade needs to be open to reach its projected outcome.
- Signal Time
- The timestamp when the AI scanner detected the setup.
- Profit / Loss
- The realized dollar outcome of the trade once it closes. Negative for losers, positive for winners.
- View Analysis
- Open the full AI analysis for this recommendation — thesis, market snapshot, risk analysis, and reasons not to take the trade.
- Recommended Position Size
- The number of contracts TradeChoice suggests based on your Max Trade Amount, the option's premium, and general risk guidelines.
- VIX — Volatility Index
- The VIX estimates how much movement traders expect from the U.S. stock market over the next 30 days. It measures expected volatility — it does not predict whether the market will move up or down.
- Volatility Regime
- The current level of expected market volatility, bucketed as Calm, Moderate, Elevated, or High.
- Simulation
- This decision was recorded in TradeChoice's activity log but no live order was placed. Live execution requires a connected brokerage.
