Call options are a type of option that increases in value when a stock rises. They’re the best-known kind of option, and they allow the owner to lock in a price to buy a specific stock by a specific ...

The strike price is the price at which a put or call option can be exercised. It's also known as the exercise price. Picking the strike price is one of three key decisions an investor must make when ...

Covered calls vs naked calls explained in simple terms. Learn the risks, rewards, and key differences before selling call options.

In our last article discussing Trading a Put, we saw how options can be used to protect against losses in a portfolio. We’ll expand that topic with a slightly different twist to see how options may be ...

Options trading can be complex, and the trading jargon may confuse even experienced investors and traders. Two of the most common options contracts to understand are call and put options. Here’s what ...

Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...