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.

What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

A put option is a financial contract that provides an investor the right (but not obligation) to sell a stock at a designated price prior to an expiration date. Learn more about put options and how ...

When you purchase an options contract, you're purchasing the right to buy or sell a stock (or other security) at a set price. Many, or all, of the products featured on this page are from our ...

Options assignment is a process in options trading that involves fulfilling the obligations of an options contract. It occurs when the buyer of an options contract exercises their right to buy or sell ...

Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician ...

Once you know the basics of how options work, putting options trading strategies in place marks the next step. Many, or all, of the products featured on this page are from our advertising partners who ...

While many are familiar with buying stocks in hopes of profiting, the strategies for benefiting from price declines are often less understood. Two powerful tools in the bearish (pessimistic) ...

The research views expressed herein are those of the author and do not necessarily represent the views of CME Group or its affiliates. All examples in this presentation are hypothetical ...

A stock option is a contract that gives you the right to buy or sell a stock at a certain price in the future. Stock options can be used to hedge against potential losses in your portfolio. Employee ...

The options calculator below can help you with both call and put options. Feel free to test out some examples to find an option’s theoretical price. Then below the options profit calculator, you can ...

Looking for the best options trading courses? Try Benzinga’s Proprietary Options Trading Service and get SMS & Email alerts. An option contract gives the holder the right, but not the obligation, to ...