A seemingly large percentage of options traders don't fully understand put/call parity and how options are priced. This causes them to lose money trading. This article is intended to help traders ...

Put options are a type of option that increases in value as a stock falls. A put allows the owner to lock in a predetermined price to sell a specific stock, while put sellers agree to buy the stock at ...

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 of ...

You’ve been looking to start another income stream and have your eye on a particular security. One problem: You don’t have the cash to buy it. So you’re considering diving into a short put options ...

By the time my commentary goes out Friday morning, several economic data points will have been released, including the ...

Trading options can be a complicated process as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. The beauty of options ...

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Michael is a former senior editor of investing and trading products for ...

Selling options can generate annual income but requires discipline, risk management, and due diligence. Read more about one ...

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 ...