Options trading is the practice of buying or selling options contracts. Whether you buy or sell depends on how you think a stock will perform over a specific period of time. Many, or all, of the ...

What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

Before we get into the nuts and bolts of options trading, it's critical to start with a basic definition of options. These derivatives are contracts that allow the holder to buy or sell shares of the ...

Rolling Options Up: Some investors elect to roll their options up when the market is bullish and they expect prices to continue climbing. To do this, they sell their current options contract and use ...

Options trading can be one of the most lucrative ways to trade in the financial markets. Traders only have to put up a relatively small amount of money to take advantage of the power of options to ...

Options are a type of derivative, which means they derive their value from an underlying asset. This underlying asset can be a stock, a commodity, a currency or a bond. To help you understand the ...

Volatility influences options prices because dramatic price swings amplify gains and losses. While traders can’t look at a crystal ball to see how much volatility the market will endure, implied ...

Put options are a type of option that increases in value as a stock falls. A put allows the owner to lock in a predetermined price to sell a specific stock, while put sellers agree to buy the stock at ...