Explore 10 essential options strategies every investor should know, from basic calls and puts to advanced spreads, risks, rewards, and real-world use cases explained.

Options are a type of derivative, meaning they “derive” their value from the securities they’re linked to. Options are also leveraged, meaning a smaller amount invested in them generates larger gains ...

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 ...

When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. Corrections and market downturns inevitably happen, so the key is to prepare for these before ...

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 ...

Author's Note: This article is part of our periodic/monthly series that attempts to present two lists of stocks for the month that could be suitable for writing options to generate relatively safe ...

One common way to help increase investment returns is to use deep in the money call options. These options have strike prices much lower than the current market price of the asset, giving them high ...

Author's Note: This article is part of our periodic/monthly series that attempts to present two lists of stocks for the month that could be suitable for writing options to generate relatively safe ...

Traders now have the ability to buy not only Bitcoin exchange-traded funds (ETFs) but also options on these Bitcoin funds. Bitcoin ETF options began to debut in late 2024, and now traders can buy and ...

When selecting the right option to buy, a trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option. While the goal for "vanilla" buyers is ...