Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...

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.

We talked recently about how new options terms and expiries have helped drive customer adoption and growth in options markets. We also saw that the most liquid options contracts also typically ...

Day trading options is a popular strategy for traders who seek to take advantage of short-term market fluctuations. Options are financial derivatives that give the holder the right, but not the ...

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A debit spread is an options strategy that involves the purchase and sale of the same class of options with the same expiration date but different strike prices. Right now, this may sound confusing, ...

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).

An option is a financial instrument whose value is tied to an underlying asset; this is known as a derivative. Instead of buying an asset, such as company stock, outright, an options contract allows ...

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our ...