Explore 10 essential options strategies every investor should know, from basic calls and puts to advanced spreads, risks, rewards, and real-world use cases explained.

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 ...

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 ...

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 ...

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 ...

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 ...

An option is a contract that allows the buyer to buy or sell shares of stock at an agreed-upon price. Investors can get outsized returns by using options instead of simply owning stocks. Be forewarned ...

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 ...

A strangle is a popular options strategy that involves holding both a call and a put on the same underlying asset. It yields ...

On average, option traders lose about 90% of the time. Thus, the put to call ratio is often used as contrarian indicator when reaching extreme levels. In this article, we will analyze the ...