Buying a call option gives you the right to buy an asset on the expiry date. This is a strategy that you would use if you were bullish about the prospects of the underlying asset, which means you ...

Implied volatility (IV) is a market's forecast that is often used to help traders determine the correct trading strategies ...

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 ...

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).

Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...

Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician ...

The options calculator below can help you with both call and put options. Feel free to test out some examples to find an option’s theoretical price. Then below the options profit calculator, you can ...

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Once you know the basics of how options work, putting options trading strategies in place marks the next step. Many, or all, of the products featured on this page are from our advertising partners who ...