A put option, also known as a put, is a right given to a holder to sell an underlying stock at a decided price before a certain date. To understand the definition completely, it is important to ...

Learn how option premiums are determined by factors like stock price, time to expiration, and volatility. Master the basics to trade options wisely and confidently.

Options assignment is a process in options trading that involves fulfilling the obligations of an options contract. It occurs when the buyer of an options contract exercises their right to buy or sell ...

To construct a short put spread, you would first identify a chart level that has served as support in the past A long put spread is a bearish options strategy that is usually initiated when the trader ...

While many are familiar with buying stocks in hopes of profiting, the strategies for benefiting from price declines are often less understood. Two powerful tools in the bearish (pessimistic) ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Day trading options is a popular strategy for traders who seek to take advantage of short-term market fluctuations. Options are financial derivatives that give the holder the right, but not the ...

Futures and options are types of financial derivatives that provide the right to buy or sell other securities, such as stocks, bonds and commodities. They’re called derivatives because the price of ...

After you’ve started learning about trading options, you may find yourself exploring level 2 options trading. Whether you're a newbie or a seasoned trader, this guide is packed with valuable insights ...