Implied volatility (IV) is a market's forecast that is often used to help traders determine the correct trading strategies and set prices for option contracts.

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 ...

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 ...

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).

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 ...

First, the Expected Move. The Expected Move is the amount that options traders believe a stock price will move up or down. It can serve as a quick way to see where real-money option traders are ...

Structurally speaking, call and put options are relatively simple. A put option allows an investor to sell a security, usually though not always a stock, at a predetermined price. A call option allows ...

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An option is a contract which gives the holder the right to buy or sell an asset at a set price within a specific timeframe. Options can be traded on a variety of assets, including stocks, currencies ...