Option trading comes with a fair amount of specialized lingo. Before you start putting in orders to buy and sell, here are some terms you should know, with definitions provided by the Chicago Board ...

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 ...

Options are a type of derivative, which means they derive their value from an underlying asset. This underlying asset can be a stock, a commodity, a currency or a bond. To help you understand the ...

What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...

A put option is a financial contract that provides an investor the right (but not obligation) to sell a stock at a designated price prior to an expiration date. Learn more about put options and how ...

At the beginning of each year I pick eight to 10 stocks that I plan to focus on for the coming year. I look for stocks that will have low volatility but are likely to go up a little bit in value ...

Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Suzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from ...