Help Desk
OPTIONS RESOURCE HUB

Trade options.
With confidence.

Everything you need to understand options, from what they are to how to place your first trade. Videos, guides, and key concepts, all in one place.

Watch the lessons  →
Your learning path

How to get started
with options trading

We've broken everything down step by step. Go at your own pace, or binge it all in one go, your call.

1

Understand the basics

Watch 6 short videos or read the guide. Either way, you'll understand what options are, how calls and puts work, and when to use them.

2

Pick your strategy

Learn which of the 4 core strategies fits your situation, whether you want to generate income, protect your portfolio, or speculate on market moves.

3

Place your first trade

Enable options in the Sarwa app in under 2 minutes. Start small, learn by doing, and scale up as your confidence grows.

Video lessons

Learn by watching.

Six short videos, designed for complete beginners.

Lesson 01
Lesson 01
Buying a Call & Put
Start here
How options actually work
Calls for up, puts for down. Simple examples so you see how both play out.
Lesson 02
Lesson 02
Options in the Money
How it works
When your trade actually works
What "in the money" really means, and when an option starts having value.
Lesson 03
Lesson 03
The Greeks
How it works
Why your option price moves
What actually drives price changes, without overcomplicating it.
Lesson 04
Lesson 04
Trading Strategies
Strategy
How people actually use options
From simple directional trades to more structured setups.
Lesson 05
Lesson 05
Exit Strategies
Strategy
When to close the trade
Lock gains, cut losses, or manage risk before expiry.
Lesson 06
Lesson 06
Lessons Learned
Key takeaways
What actually matters
The practical things that stick, and the mistakes to avoid.
Lesson 07
In the app
Lesson 07 · Final stage
Trading Options with Sarwa
Put it into practice

A full walkthrough of placing an options trade, from choosing a contract to confirming the order.

Quick reference

Know the terms.

The 10 terms you'll need to know, in plain language.

📄
Options
A contract
Buying or selling an options contract means taking a position on on what you think the stock will do at a later date.
📊
Underlying price
Market price
The current price the stock is trading at when you buy the options contract.
🎯
Strike price
The target price
The price you're hoping the stock will reach by expiry. A $260 Tesla call means $260 is your strike price.
💰
Premium
What you pay upfront
The cost of the contract, and your maximum loss. 1 contract = 100 shares, so $2 premium = $200 total.
📅
Expiration Date
The deadline
Your option must "work" before this date. If the stock doesn't move your way, it expires worthless.
📈
Call Option
Expecting a price increase
A call option is a contract that's tied to the price of a stock moving up.
📉
Put Option
Expecting a price decrease
A put option is a contract that's tied to the price of a stock going down.
✅
In the Money (ITM)
Already has value
The contract has intrinsic value. If it expired right now, it would still be worth something. More expensive premium.
↔️
At the Money (ATM)
In the middle
The strike price and the stock price are roughly equal. No built-in value yet. It could go either way.
⏳
Out of the Money (OTM)
No built-in value
No intrinsic value. If it expired now, it would be worthless. Cheaper premium, needs a bigger move before expiration.
Fundamentals

The 4 Core Strategies

Every options strategy on Sarwa falls into one of these four.

📈

Buy a Call (Long Call)

Summary: Pay a small fee now (the premium) for the right to buy a stock at a locked-in price, even if it goes up later.

Strategy: Capitalise on an upward move without committing to the full cost of buying the shares.

Outlook: Bullish If you think price will rise Max Profit: Unlimited Max Loss: Premium paid
📉

Buy a Put (Long Put)

Summary: Pay a small fee now to lock in a selling price for a stock, even if it drops later.

Strategy: Safeguard against losses or capitalise on a downward market.

Outlook: Bearish If you think price will fall Max Profit: Large if stock hits $0 Max Loss: Premium paid
🟡

Covered Call (selling a call on stocks you own)

Summary: Get paid a fee (the premium) for agreeing to sell your shares at a set price within a time frame.

Strategy: Earn additional income from your stock positions without taking on a lot of risk.

Outlook: Bullish or Neutral Max Profit: Premium + gains to strike Max Loss: Stock price drop - premium
💵

Cash-Secured Put (selling a put with capacity to cover)

Summary: Get paid a fee (the premium) for agreeing to buy shares at a set price within a time frame.

Strategy: Generate income if you expect the stock price to increase moderately. Some investors also use it to acquire the equity.

Outlook: Bullish Max Profit: Premium Max Loss: (Stock price drops below strike price) - premium
Downloadable resource

Take it with you.

The complete Sarwa beginner's guide, covering all of the above, plus a glossary and worked examples.

Sarwa.co · Beginner's Guide

A beginner's
guide to Options
Trading

📄 Free PDF download

Everything in one place.

From what an option is to how it's valued, the difference from stocks and CFDs, and the plane-ticket analogy that makes it all click.

  • 01What is options trading?
  • 02Types of options: calls & puts
  • 03How an option's value is determined
  • 04Stocks vs Options vs CFDs
  • 05Why trade options, pros & cons
  • 06The analogy that makes it click
📥 Download the guide
Options vs Stocks vs CFDs

Know what you're choosing.

Three ways to get stock exposure. Very different risk profiles. Based on $10,000 invested.

You have
$10,000
📈 Stock
You own it
⚡ Option (Call)
Right to buy later
⚠️ CFD (5× leverage)
Not on Sarwa
You pay
$10,000 upfront
$500
$2,000
Stock +50%
+$5,000
+$4,500
+$5,000
Stock −50%
-$5,000
-$500
-$5,000
Worst case
-$10,000
-$500 (premium)
Owe more than $2,000
Key point
No expiry. You own the asset.
Loss capped at premium.
Can lose more than you put in.

Frequently Asked
Questions

How do I enable options trading on Sarwa?
To enable options trading, you must first have a Sarwa Trade account. Once logged in, navigate to the account page and select "Options Trading" or press the "Trade" button and choose "Options." Complete the suitability questionnaire to proceed. Once approved, you will be able to trade options on your account. There are 2 levels in options trading, and the level you are qualified for is determined by the broker based on the options questionnaire.
What are the fees for trading options on Sarwa?
Commission Fees: $4 per contract for buying and selling.

Exercising Contracts: Commission fee of $1 or 0.25% of the traded value, whichever is greater.
What are the available order types for options on Sarwa?
You can place market or limit orders.

Market Orders: Provide fast execution but do not guarantee the price. Only available during regular market hours (9:30 AM–4 PM ET).

Limit Orders: Executed only at your specified price or better. Can be placed when the market is closed and will queue for market open.
What is cash and stock collateral?
Sarwa does not support naked short calls or puts. When you take a short position on an option contract, you must secure it with either the underlying stocks or cash.

Stock Collateral: For selling a call option, you must cover it with 100 shares of the underlying asset.

Cash Collateral: For selling a put option, you need enough cash to buy 100 shares of the underlying asset if assigned.
View All FAQs  →
Options trading illustration