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 ...

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 ...

When you purchase an options contract, you're purchasing the right to buy or sell a stock (or other security) at a set price. Many, or all, of the products featured on this page are from our ...

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 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 ...

Forbes contributors publish independent expert analyses and insights. Making wealth creation easy, accessible and transparent. Options allow you to make money in the stock market regardless of whether ...

Retail options trading exploded in 2020 as stimulus money flooded into the bank accounts of many retail investors stuck at home with little to do. As a result, certain stocks (especially the tech ...

Options trading has become popular, especially during periods of high volatility in the market. Traders use the IV Rank metric to identify opportunities where implied volatility is at extremes.

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 ...

Subscribers to Chart of the Week received this commentary on Sunday, August 27. Last week, COO and fearless leader Katie Schaeffer was chatting with me about our latest product, In-the-Money Countdown ...

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 ...