The stock market gives investors many opportunities to build wealth. While many people get started with trading stocks, some investors hear about options trading and may want to give it a try.
An option is a financial instrument whose value is tied to an underlying asset; this is known as a derivative. Instead of buying an asset, such as company stock, outright, an options contract allows ...
Picking the right options trading strategy for you will depend on what direction you think a stock’s price will go and your capacity to absorb losses. Buying an option, or “going long,” will have less ...