Options are financial instruments that provide the right, but not the obligation, to buy or sell an underlying asset at a set strike price, offering investors a way to leverage their positions or...
Options are derivative contracts on an underlying asset (an options contract for a certain stock is typically worth 100 shares). Options are complex, high-risk instruments, and investors need to understand how they work in order to reduce the risk of seeing steep losses.
Learn the basics of options trading—what calls and puts are, how options work, and strategies to hedge or speculate—with practical examples for beginners.
Options contracts provide the right, but not the obligation, to buy or sell an underlying asset at a preset price within a specified time frame. There are two primary types of options: call...