An option premium is the fee that the buyer of an option contract pays for the right to buy or sell stocks or other securities at a pre-set price when the contract’s time limit expires. From the ...

Kesavan Balasubramaniam is a freelance writer who covers a wide array of investing topics, including retirement, FX trading, and small business. Thomas J Catalano is a CFP and Registered Investment ...

What is a Put Option? A purchase of a put option allows you the right to sell the underlying at a strike price. You can use puts to protect a long position from a price decline, but you can also use ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Option margin is the collateral (cash or securities) an investor must deposit before writing or selling options ...

A stock option is a contract that gives you the right to buy or sell a stock at a certain price in the future. Stock options can be used to hedge against potential losses in your portfolio. Employee ...

What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

A put option is a financial contract that provides an investor the right (but not obligation) to sell a stock at a designated price prior to an expiration date. Learn more about put options and how ...

Selling puts is an oft-overlooked option trade that can pair well with long-term investing strategies under certain circumstances. Many, or all, of the products featured on this page are from our ...

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Although opposed by some firms in the health care industry, a public option would bring down families' health care costs and improve the quality of coverage—even for people who remain in private ...

Having already recently examined overall trends in the inclusion of options in contracts, we’ll now take a look at the different types of options. The four most common types of options are: (a) club ...