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 ...

Key Takeaways An option is a contract giving the buyer the right—but not the obligation—to buy (in the case of a call) or sell (in the case of a put) the underlying asset at a specific price on or ...

What Is a Stock Option? A stock option is a contract giving its holder the right, but not the obligation, to buy or sell a stock at a given price before a specific date. There are two main types of ...

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 ...

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 ...

As such, exercising an in-the-money call option would allow the trader to buy shares at a discount to the current market ...

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 ...