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 ...

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 ...

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 ...

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 ...

The premium amount will vary and is tied to ... "Tech stocks and higher volatility stocks produce more option income, but large, established companies with strong balance sheets and regular ...