Learn how option premiums are determined by factors like stock price, time to expiration, and volatility. Master the basics ...

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 ...

Learn how dividend arbitrage works to potentially earn risk-free profits by buying stock and put options pre-ex-dividend date. Discover the strategy, steps, and a profit example.

To construct a short put spread, you would first identify a chart level that has served as support in the past A long put spread is a bearish options strategy that is usually initiated when the trader ...

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 ...

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 ...

The "Greeks" are an essential toolkit for options investors and traders. These mathematical calculations, each named after a ...

Options are versatile financial instruments that offer traders and investors a unique way to engage with the markets. Whether you're looking to amplify gains, hedge against potential losses, or ...

Futures and options are types of financial derivatives that provide the right to buy or sell other securities, such as stocks, bonds and commodities. They’re called derivatives because the price of ...

The option Greeks (Delta, Gamma, Theta, Vega and Rho) are option trading indicators to predict price changes and manage risk in their trading strategy. Each Greek measures a different aspect of an ...