Discover how reverse greenshoe options stabilize IPO prices, including their function, examples, and historical background, ...

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 ...

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 ...

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) ...

The option Greeks (Delta, Gamma, Theta, Vega and Rho) are option trading indicators to predict price changes and manage risk in their trading strategy. Each Greek measures a different aspect of an ...

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 ...

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 ...

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 ...

Depending on how you think a stock might move, put options can help you make money if your view comes true. Many, or all, of the products featured on this page are from our advertising partners who ...

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 ...

Options are versatile financial instruments that offer traders and investors a unique way to engage with the markets. Whether you're looking to amplify gains, hedge against potential losses, or ...