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 ...

As the expiration date approaches, the premium buyers pay for the contract decreases. The value of options contracts typically fluctuates along with the prices of the underlying stocks ...

Looking for a smoother ride in volatile markets? This popular fund could be your ticket to low-risk wealth management.

A call option is a contract tied to a stock. You pay a fee, called a premium, for the contract. That gives you the right to buy the stock at a set price, known as the strike price, at any point ...

This means that if the price of the stock falls, the options would expire worthless and the investor who wrote the call would get to pocket the premium. If, however, the stock in question did go ...

You’d be paid an option premium right away, then later if the buyer chooses to exercise the option, you would have to either sell them the stock at the agreed-upon price or “roll up” the ...

There are two components to this strategy: tax-managed equity exposure and call-option premium income. The equity component employs a model that selects a basket of stocks optimized to track the S ...

While stocks appeal to beginners and long-term investors, options can work well for active traders who appreciate flexibility. Many, or all, of the products featured on this page are from our ...

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 ...