A seemingly large percentage of options traders don't fully understand put/call parity and how options are priced. This causes them to lose money trading. This article is intended to help traders ...

A put option, also known as a put, is a right given to a holder to sell an underlying stock at a decided price before a certain date. To understand the definition completely, it is important to ...

A guide to writing these derivatives to earn income or hedge your portfolio Reviewed by Samantha Silberstein Fact checked by ...

The thesis for this article is already captured in the title. In the subsequent sections, I will argue why the combination of elevated P/E ratios for the overall equity market and muted level of ...

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 bull put spread is an options strategy where you sell a put option at a higher price and buy one at a lower price for the same asset and expiration date. This helps generate income and limits losses ...

The call vs. put distinction can be confusing to options-trading beginners. Here’s what you need to know about the difference between puts and calls. Many, or all, of the products featured on this ...

Trading options can be a complicated process as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. The beauty of options ...

Discover how reverse greenshoe options stabilize IPO prices, including their function, examples, and historical background, ...

Call options. Calls give the purchaser of the option the right (but not the obligation) to buy stock from the writer of the option in the future. Put options. Puts give the purchaser the right (but ...