A stock option is a financial contract that gives the owner the right, but not the obligation, to buy or sell a stock at a ...

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 ...

Even though the value of stock options is based upon the price of the underlying equity, there are several other factors in play that can influence the premium of your contracts.

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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 ...

In a straightforward call-buying strategy, the premium paid to acquire a call option is also the maximum potential loss on the trade, should the stock fail to live up to bullish expectations.

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 ...

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 ...

Because indexes are theoretical and aren’t actual stock funds ... This means that if the listed premium (sale price) of an index option was $200, the total contract would cost $20,000 to ...