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 ...

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 ...

Call options are a type of option that increases in value when a stock rises. They’re the best-known kind of option, and they allow the owner to lock in a price to buy a specific stock by a specific ...

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 ...

A call option is an option contract that gives the owner of a security the right to buy a corporation’s stock at a specific price within a stated time period. Investors purchase call options when they ...

Investors often turn to options for speculation or risk management. There are two main types: call options, granting the right to buy an asset at a set price within a certain time frame, and put ...

Derivatives are instruments that obtain value based on the price of an underlying asset, such as a stock, bond, ETF, or commodity. Stock option contracts are securities that give traders the choice of ...

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' ...