Algo hobbyist (P2) · 17 units
Read the tape, then carry it into options
You already write strategies; what you want is to read the tape the way the market actually prints it, then take that into options. This path walks the fundamentals in order — price and volume, structure, volatility — and puts the options mechanics on top, each unit ending on a one-liner you can run over live data.
Start the pathWhat a chart actually is- Market fundamentals · BeginnerWhat a chart actually isA chart is an event record, not a picture. It plots price against time, and each candle compresses one interval into four numbers: the open and close, where price started and ended, and the high and low, how far it reached each way. The body spans open to close; the thin wicks mark the extremes. Colour encodes direction only — green closed above its open, red below — never good or bad. Read left to right, a run of candles becomes a sentence: where price began, what it tested, where it settled. A chart records what happened and when. It does not encode why, and it does not tell you what happens next. Learning to read one is learning the alphabet before you can read the words. This unit defines the candle, then reads a generic session as a story you can run and recompute yourself.
- Market fundamentals · BeginnerPrice moves, volume confirmsPrice tells you where the market went; volume tells you how much conviction carried it there. Volume is the count of shares or contracts that actually changed hands in an interval, drawn as a bar beneath each candle. A large move on heavy volume is a push — many participants agreed and acted, so the move has weight behind it. The same-sized move on thin volume is a drift — few hands, easily unwound, a question rather than an answer. Volume never predicts direction; it grades the move that already happened, separating a committed break from a listless one. So the reading order is fixed: price for the what, then the volume beneath it for the how-much. A move with no volume behind it is not wrong, only unconfirmed. This unit reads a generic volatile session where volume surges and fades, then hands you the same session to recompute yourself.
- Market fundamentals · BeginnerThe same tape at three zoom levelsA timeframe is the interval each candle compresses — one minute, one hour, one day. It is a zoom level, not a different market: the 1-minute, 1-hour, and 1-daily chart of one session are the same events at three resolutions, and the timeframe you pick changes the story you read. Zoom in and every wiggle is a candle, so the tape looks busy and every pullback feels urgent. Zoom out and those same wiggles collapse into one long body, so a frantic hour reads as a calm step. Neither view is more true; each answers a different question. So the rule is to match the frame to the question you are actually asking — a fast-moving read wants a fine frame, a where-are-we read wants a coarse one. This unit walks one generic session across three zoom levels, then hands you that session to recompute and re-zoom yourself.
- Market fundamentals · BeginnerThe two pricesThere is never one price — there are two. The bid is the highest price a buyer is currently willing to pay; the ask is the lowest price a seller will accept. The gap between them is the spread, and the mid is just their average, a convenient fiction no one actually trades at. The last price is only the most recent trade, already history. To buy right now you cross the spread and pay the ask; to sell right now you hit the bid. That crossing is a real cost, paid on entry and again on exit, and it is why the price a chart draws — usually the last or the mid — is not the price you get filled at. A wide spread makes that cost large; a tight one makes it small. This unit shows where the two prices sit against the chart's single line, then hands you a real filled trade to recompute.
- Market fundamentals · BeginnerWho is on the other sideEvery trade has two sides, and the other side is always someone with a reason. Four rough groups fill the book. Market makers quote both bid and ask and earn the spread; they want flow and balance, not a direction. Institutions move size and often must trade — a fund rebalancing, a hedge being set — so their why is a mandate, not a view. Retail traders move small and discretionary, in and out by choice. Algorithms execute rules at machine speed, from spread-capture to liquidation. Knowing this reframes a fill: someone took the other side, and whether they were forced, indifferent, or eager is information about the move. A seller who must sell into a crash is not the same signal as one who chose to. This unit reads a stressed generic session for who was likely on each side, then hands you that session to recompute yourself.
- Market fundamentals · IntermediateTrend, chop, and how to tellA market is in one of two structures at any time, and telling which is the whole skill. A trend is directional: an uptrend prints higher highs and higher lows, a downtrend lower highs and lower lows, so each swing extends the last. Chop is a range: highs and lows stall in a band, swings overlap, and price goes sideways. The uncomfortable truth is that most of the tape is chop — long stretches of range punctuated by shorter runs of trend — and that matters because the two structures reward opposite reflexes. Reading structure means reading the sequence of swing highs and lows, not any single candle: as long as each high tops the prior high and each low holds above the prior low, the trend is intact; when that sequence breaks, structure has changed. This unit walks a generic session through trend and chop, then hands it to you to recompute.
- Market fundamentals · IntermediateLevels are memory, and they are zonesA support or resistance level is where prior decisions cluster — a price area the market has reacted to before and therefore remembers. Support is a zone below where buyers have stepped in; resistance is a zone above where sellers have. The single most useful correction to make early is that levels are areas, not lines: real orders sit across a small band, so a level is a zone price probes and reacts within, not an exact number it touches to the tick. Levels are memory rather than magic — they hold because participants remember trading there and act again, and they stop holding when that memory is used up. When a level finally gives way it often flips: old resistance, once broken, becomes support, and the reverse. This unit reads a generic range for its zones and one clean flip, then hands you the session to recompute and mark up yourself.
- Market fundamentals · IntermediateCompression and expansionA squeeze is compression: price coils into a tightening range as buyers and sellers reach a standoff and volatility falls. A breakout is the expansion that follows, when price leaves the range on a burst of range and volume. The two are one cycle. Reading it means telling a real breakout from a fakeout: the genuine move holds beyond the range's edge and carries volume, while the fakeout pokes out and snaps back inside. Compression tells you energy is building; it never tells you which direction the release will take. This unit walks the cycle on a generic session — the coil, the expansion, and the give-back — then hands you a real volatility session you can run and recompute, so the shape stops being folklore and becomes a receipt you can check.
- Market fundamentals · IntermediateWhy price jumpsA gap is a jump: price opens away from where it last traded, leaving a blank space on the chart with no candles in it. Gaps happen because the market is not always open while the world keeps moving — overnight news, an earnings report, a scheduled decision — so information arrives while trading is paused and the opening auction repositions price all at once to clear the imbalance. The gap is the market pricing in what it missed. The folklore says gaps always fill — that price returns to close the blank space — but the mechanics are plainer: some gaps fill because the move overshot the news, and some never do because the news genuinely repriced the instrument. Fill is a tendency, never a law. This unit reads a generic session that gaps on an event and then partly retraces it, then hands you the session to recompute yourself.
- Market fundamentals · IntermediateWhat volatility isVolatility is the size of price movement, not its direction — how far and how fast an instrument travels, regardless of which way. It comes in two kinds that are easy to confuse. Realized volatility is backward-looking: it measures how much price actually moved over a past window, a fact you can compute off the tape. Implied volatility is forward-looking: it is the movement the market is currently pricing in for the future, read out of option prices, so it is the market's own estimate of its uncertainty — its price of not knowing. The two diverge, and that divergence is the whole game one level up: when the crowd expects a storm, implied rises above what has realized; when it calms, implied falls back. Volatility is the bridge from reading charts to reading options, because an option is a contract whose price is built on it. This unit reads a generic session where volatility spikes and subsides, then points you into the options track.
- Options · BeginnerCalls and puts, rights and obligationsAn option is a contract, not a share. A call gives its buyer the right — never the duty — to buy 100 shares of an underlying at a fixed strike price, with a fixed expiry as the deadline; a put gives the right to sell at the strike. The buyer pays a premium up front for that right and can walk away; the most they lose is the premium. On the other side, the writer collects the premium and takes the obligation: if the buyer exercises, the writer must deliver. That asymmetry — a right on one side, an obligation on the other — is why optionality has a price at all. This unit defines the call and the put, separates the buyer from the writer, and reads a generic contract as what it is: a priced choice about the future, settled on a deadline you agree to at the start.
- Options · BeginnerMoneyness and the clockMoneyness describes where the strike sits relative to the current price. A call is in-the-money (ITM) when price is above the strike, at-the-money (ATM) when they are level, and out-of-the-money (OTM) when price is below; for a put the directions flip. Moneyness is not fixed — it moves every time the underlying moves, so an OTM call becomes ATM then ITM as price rises past its strike. Expiry is the contract's deadline: the date after which the right simply ends. Picking a strike and an expiry is a statement about how far you think price could travel and by when. This unit places three strikes around a generic price, shows how each one's moneyness changes as price moves, and frames the clock as the second axis every option is priced on alongside the strike.
- Options · BeginnerWhy you pay what you payAn option's premium splits into two parts. Intrinsic value is the amount the option is already in-the-money — a $100 call with price at $106 holds $6 of intrinsic value, and never less than zero. Extrinsic value, often called time value, is everything above intrinsic: what you pay for the chance that price moves further your way before expiry. An out-of-the-money option has zero intrinsic value, so its entire premium is extrinsic — you are buying time and volatility, nothing you could exercise today. Extrinsic value is largest when there is more time left and when the market expects bigger moves, and it decays toward zero as expiry approaches. This unit takes one premium apart into its intrinsic and extrinsic halves on a generic contract, so a price stops being a single number and becomes two questions with two different answers.
- Options · BeginnerWhat happens at the endExercise is the option buyer invoking their right — a call buyer buying at the strike, a put buyer selling at it. Assignment is the mirror on the writer's side: when a buyer exercises, the clearing house assigns a writer who must deliver. Settlement is how the delivery happens. Physically-settled options hand over the actual shares at the strike; cash-settled options (common on index contracts) just pay the in-the-money difference in cash. Most in-the-money options are handled automatically at expiry, and out-of-the-money ones simply expire worthless. Pin risk is the edge case: when price finishes almost exactly at the strike, whether an option lands in- or out-of-the-money — and so whether it is assigned — can flip on the last prints. This unit walks one generic contract through expiry so the ending stops being a mystery.
- Options · BeginnerReading the chainAn option chain is the full grid of contracts on one underlying: every strike, down the rows, for each expiry, with calls usually on one side and puts on the other. Each cell carries the same handful of columns. Strike and expiry identify the contract. Bid and ask are the two live prices — the bid is the highest price a buyer will pay, the ask the lowest a seller will accept — and the gap between them is the spread you cross to trade. Volume is how many contracts changed hands today; open interest is how many contracts exist and remain open. Implied volatility is the market's expected movement, backed out of the premium. Read together, the chain is a map of where the market has parked its attention and its opinions. This unit reads one generic chain column by column so the grid stops being noise.
- Kestrel-native · IntermediateThe receipt you can re-verify yourselfA proof URL is a certified Grade served as a public, anonymous, read-only artifact — no account, no key, no login. Two independent checks make it trustworthy without trusting the server. In a browser, the page fetches kestrel's published verify key from a well-known document and re-verifies the Grade's Ed25519 signature client-side, against the artifact's pinned roots. On the command line, the CLI goes further and recomputes the whole record byte for byte on your own machine, then asserts it matches. Either way you trust the math, not the server's word for it. That is why a proof URL is the conversion evidence an agent hands its human at the end of a free trial: it is a shareable, re-verifiable object, not a screenshot or a claim. This unit explains what a proof URL contains, the two checks anyone can run, and why the receipt is the atom the whole trust chain is built from.
- Kestrel-native · AdvancedThere is no letter gradeA Kestrel Grade never hands back a letter or a single score. It reports separated, honest numbers: a realized floor in dollars — strict-cross, only the fills that were definite — an expected value under an explicit fill-survival model, stated as a bound and never the headline, and a bankable EV that refuses any expectation resting on extrapolated support. The floor is what you can stand on; the expected value is a modeled bound above it; the bankable number is the conservative one you are allowed to carry forward. Grades are date-blind so hindsight cannot leak into the score, and practice Grades are structurally non-ranking — the eligibility type has no honest-ranking member, so an unlimited-retry practice result can never be promoted onto a ranking, even by a bug. This unit shows why the separation is the point: one collapsed score would hide exactly the uncertainty an honest receipt is supposed to expose.