They can be used in either conservative or aggressive ways, but they all carry risks. How Do Stock Options Work? There are three basic terms that apply to all options: strike price, expiration ...

Depending on how you think a stock might move, put options can help you make money ... to take an action on their website. However, this does not influence our evaluations. Our opinions are ...

Trading options requires answering these questions ... website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own.

However, many active options traders never plan to touch the underlying shares themselves. Instead, they buy and sell options – sometimes in various combinations known as "spreads" – with the ...

Stock options are leveraged instruments that derive their value from an underlying security, such as a stock. This makes them different from stocks, which are perpetual in nature and represent an ...

They may let the option expire if the stock's price never exceeds $85. But, if it does, the holder can exercise the option, and you'll lose out on potential gains. In either case, you get to keep ...

Index options are quite similar to typical options contracts, but they differ in several important ways: While the value of a typical options contract varies based on the price of a single ...

Several key terms are important to discussing and understanding how options work ... six weeks. They may let the option expire if the stock's price never exceeds $85. But, if it does, the holder ...