Investors can use this strategy like an insurance policy; it establishes a price floor if the stock's price falls sharply. This strategy is also known as a protective put, though that can sometimes ...

Mention stock options to most individual investors and the response is likely to be either a look of fear or bewilderment. Stock options, after all, are thought to be for traders, for those who like ...

What Investors Need to Know About LEAPS Options. The popularity of options trading has reached an all-time high, with a record 39 million total contracts traded in 2021. While options trading can be ...

With more information available and the ability to quickly trade options online, investors are becoming savvier with using options to speculate, hedge and create their own financial strategies using a ...

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Options give investors the right, but not the obligation, to buy shares with a ...

An option can be either in the money, out of the money or (very rarely) at the money. These three different statuses for options indicate the relationship of the option’s strike price and the price of ...

What will a stock be worth at a future date? Buying a call option bets on “more.” Selling a call bets on “less.” Here are 3 examples of call options trading. Many, or all, of the products featured on ...

Options trading strategies help traders hedge their positions and can result in higher returns than stock trading. Options strategies can also help investors protect or enhance their return on an ...

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Thomas J. Brock is a CFA and CPA with more than ...

Options trading has surged in popularity in recent years. With this increasing visibility, new market participants might wonder whether they must make a choice between stocks vs options. Knowing the ...

Employee stock options can be lucrative, but knowing when to exercise your options isn't always straightforward. Many, or all, of the products featured on this page are from our advertising partners ...

The derivative income Morningstar Category netted over $25 billion in inflows in 2023, growing its asset base by half. Much of this investment went to JPMorgan Equity Premium Income ETF JEPI, which ...