Learn the benefits and risks of options and how to start trading options Reviewed by Samantha Silberstein Fact checked by Vikki Velasquez Options are financial contracts that give the holder the right ...

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 ...

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 ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J Catalano is a CFP and Registered ...

Options buyers can use their call and put options as a means of buying and selling shares Although we know (perhaps better than most) that there are many uses of stock options, we tend to focus quite ...

A bear call spread is an options strategy where you sell a call option at one strike price and buy another at a higher strike price for the same stock and expiration. This approach caps both potential ...

Options contracts give the right to buy or sell stock at set prices, potentially profitable. There are call (buy) and put (sell) options; employee stock options are typically call options. Options' ...