Literacy Before Judgment
Step 2:
Learn the Language of Options
“You cannot trade what you cannot define. This step builds the vocabulary required to operate the system safely.”
Executive Summary
This step exists to remove the anxiety that comes from not knowing the language. Before you can make complex decisions, you must be fluent in the basics.
This is about understanding, not trading.
Important Context:
Step 3 is intentionally locked until this step is complete. You cannot learn judgment (Step 3) until you possess literacy (Step 2).
What You Will Learn
Key Outcomes
- What options actually are
- Calls vs Puts explained simply
- How to read an options chain
- Time & Price behavior basics
- CSPs, Covered Calls, and Spreads
- Order placement mechanics
- What NOT to do
What Comes Next
Step 3 introduces judgment and structure. Literacy must come first. This step makes later decisions obvious instead of stressful.
Orientation
If You Purchased the Course Only
This course stands alone as a complete introduction. However, Step 1 is strongly recommended for context on goals, capital, time, and commitment.
Review Step 1 →If You Follow the Full Pathway
Step 2 is required. Mile Markers must be met. Remember: Understanding > Speed.
How To Use This Step
This section prevents binge-watching behavior. Take your time.
Core Content: Options Beginner’s Course
1. What Is an Option
Understanding the fundamental contract.
- Rights vs Obligations
- The Buyer/Seller relationship
Supports Mile Marker 1
2. Calls vs Puts
The two building blocks of every trade.
- Bullish vs Bearish intent
- Directional assumptions
Supports Mile Marker 2
3. Selling Options
Why we prefer to be the House.
- Premium collection
- Time decay advantage
Supports Mile Marker 3
4. Cash-Secured Puts
Getting paid to buy stock you want.
- Collateral requirements
- Entry strategy
7. Risk Management 101
Protection first, profit second.
- Sizing
- Stop losses vs adjustments
Supports Mile Marker 7
Bonus Training: Live Practice
Live Covered Call Training
Watch a real-world application of the covered call strategy in a live market environment.
Download the Reference PDF
Includes visual examples and key setup rules.
Step 2 Mile Markers — Completion Check
MM1: Basic Definitions
- I can define Call and Put.
- I understand Strike Price.
MM2: Mechanics
- I can read an options chain.
- I know how to place an order.
Confirm understanding before moving forward.
Step 2 Summary
Pause Moment
Literacy is progress. You now speak the language required to operate the system.
Reflection (Required)
Encourage writing, not skimming.
What finally makes sense now?
What changed how you think about options?
What still feels unclear?
Feedback Loop
Feedback improves the pathway. Both positive and critical feedback matter. This is a living system.
Next Steps
Step 3 (Decision Framework) is reserved for Full Engine Members.
Choose your path below:
Review & Reinforce
Not ready to upgrade? Rewatch these videos, practice reading options chains, and solidify your understanding.
Stay Here & PracticeUnlock The Full System
Ready for Step 3? Upgrade to the Freedom Income Engine to access the Decision Framework, Trading Rules, and Weekly Rhythm.
Upgrade to Full Engine“Step 2 creates preparedness. Step 3 creates the strategy. We’ll see you there when you’re ready.”