A combination in options trading is a strategy involving different calls and puts on the same asset. Learn how these ...

An option is a contract that allows the buyer to buy or sell shares of stock at an agreed-upon price. Investors can get outsized returns by using options instead of simply owning stocks. Be forewarned ...

The combination of greater accessibility, better education and highly unpredictable markets makes options an essential part ...

Trading options requires answering these questions: Which direction will a stock move, how far will it go and when will it happen? Here are 4 steps to get started. Many, or all, of the products ...

What will a stock be worth at a future date? Buying a call option bets on “more.” Selling a call bets on “less.” Here are 3 examples of call options trading. Many, or all, of the products featured on ...

Options provide a different kind of opportunity than trading stocks directly. An option gives an investor the right to buy or sell a stock at a future date and at a predetermined price. Options give ...

Options traders employ several trading strategies, but they all have the same objective: to make a profit. It’s possible to make money with options trading, and knowing how to calculate profitability ...

Stock options are a riskier type of investments but have the ability to produce outsized gains for investors without the need for margin, though some strategies require it. An investor might lose ...

Stock and options markets have both seen consistent increases in liquidity over the past 30 years as automation reduces costs, improves position hedging for professionals and expands accessibility to ...

Picking the right options trading strategy for you will depend on what direction you think a stock’s price will go and your capacity to absorb losses. Buying an option, or “going long,” will have less ...

Intrinsic value is the current worth of an option if exercised now; time value decreases as expiration nears. Theta measures the daily decrease in an option's time value as it approaches its ...