A seemingly large percentage of options traders don't fully understand put/call parity and how options are priced. This causes them to lose money trading. This article is intended to help traders ...

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 ...

The thesis for this article is already captured in the title. In the subsequent sections, I will argue why the combination of elevated P/E ratios for the overall equity market and muted level of ...

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 ...

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 ...

Stock options are leveraged instruments that derive their value from an underlying security, such as a stock. This makes them different from stocks, which are perpetual in nature and represent an ...