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 ...

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 ...

However, options prices are not static. Indeed, they fluctuate throughout the lifetime of the contract due to a laundry list of variables. That list includes the price of the underlying stock and ...

If an investor purchased the theoretical put option discussed above, they would do so in the hope that the underlying asset would continue to fall in price, causing the option’s intrinsic value ...

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 ...

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 ...

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 ...