What Is a Stock Option? A stock option is a contract giving its holder the right, but not the obligation, to buy or sell a stock at a given price before a specific date. There are two main types of ...

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 ...

In options trading, assessing intrinsic and extrinsic value can help determine an option's price. Intrinsic value shows the profit from immediate exercise, while extrinsic value accounts for factors ...

Every investor looks for ways to grow their capital, but some investors are willing to incur a greater level of risk than others. While high-yield savings accounts cater to people with a low risk ...

We independently evaluate all of our recommendations. If you click on links we provide, we may receive compensation. Michael is a former senior editor of investing and trading products for ...

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