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 ...

Learn about the Black-Scholes model, how it works, and how its formula helps estimate fair option prices by weighing ...

When you sell a put option, you're promising to buy a stock at a set price if it falls below that level—similar to how an insurance company promises to pay if your car gets damaged. In exchange, you ...

Covered calls are a common investment strategy. This strategy involves owning stocks and selling call options on them. By selling call options, investors earn extra income from option premiums while ...

A call option contract gives the buyer the right, but not the obligation, to buy shares of a stock or bond at a stated price on or before the contract’s expiration date. A single call option contract ...

If your analytics tell you a bear market is ahead, you might be thinking about trying to make money from the market with a short call options strategy. Effectively, you are putting up your bet about ...

In the financial world, options come in one of two flavors: calls and puts. The way that calls and puts function is actually ...

Options trading can be complex, and the trading jargon may confuse even experienced investors and traders. Two of the most common options contracts to understand are call and put options. Here’s what ...