Learn the basics of options trading, what calls and puts are, how options work, and strategies to hedge or speculate with ...

Stock options are leveraged instruments that derive their value from an underlying security, such as a stock. This makes them ...

Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...

The strike price is the price at which a put or call option can be exercised. It's also known as the exercise price. Picking the strike price is one of three key decisions an investor must make when ...