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 ...

Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. Her expertise covers a ...

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 ...

The research views expressed herein are those of the author and do not necessarily represent the views of CME Group or its affiliates. All examples in this presentation are hypothetical ...

The popularity of stock options trading has soared in recent years, as retail stock traders have become more comfortable with managing their own investment portfolios and dipping their toes into the ...

Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She ...

A call option is a contract that gives you the right but not the obligation to buy a specified asset at a set price on or before a specified date. The cost of buying a call option is known as the ...

NerdWallet defines a "call option" as a contract that gives you the right, but not the obligation, to purchase stock at a "strike price" before the call option's "expiration." The strike price is ...