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Gamma measures how the delta of an option changes relative to a $1 change in the underlying asset's price. Long options always have a positive gamma, which ranges from 0 to 1.

The delta of an options contract tells us how much the price of an option is expected to change relative to a $1 move in the price of the underlying asset.

In options trading, the "premium" refers to the price of an options contract, which includes both intrinsic and extrinsic value.

In options trading, intrinsic value is an option's value on its own, independent of external factors like time and volatility. Extrinsic value, by contrast, represents the portion of an option's value influenced by these aforementioned external factors. Together, these two components comprise the complete value of any options contract.

In options trading, moneyness refers to the relationship between an options contract's strike price and the underlying asset's current price. All options fall into one of three moneyness states: in-the-money (ITM), out-of-the-money (OTM), or at-the-money (ATM).

Options expire on a specific date set in the contract, with expiration cycles that include monthly, weekly, and 0DTE (zero days to expiration) options. To mitigate risk, options traders must understand key concepts such as time decay, pin risk, and auto-exercise.