Learn the basics of options trading, what calls and puts are, how options work, and strategies to hedge or speculate with ...

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 ...

Selling options is often described as an attractive way to generate income, but it also carries a reputation for hidden risk. Stories of traders collecting small premiums for months—only to give it ...

Put options are a type of option that increases in value as a stock falls. A put allows the owner to lock in a predetermined price to sell a specific stock, while put sellers agree to buy the stock at ...

The strike price is the price at which a put or call option can be exercised. It's also known as the exercise price. Picking the strike price is one of three key decisions an investor must make when ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Get The FREE Spreadsheet! What happens if you sell put options on the NASDAQ 100 ETF (QQQ) instead of just buying and holding? In this video, we backtest a systematic put-selling strategy over the ...