Options and futures let investors speculate on changes in the price of an underlying security, index, or commodity. However, these financial derivatives have important differences.
Selling (writing) a put option allows an investor to potentially own the underlying security at a future date and at a more favorable price. But it comes with some risk.
An option premium is the income received by an investor who sells an option contract, or the current price of an option contract that has yet to expire.
A protective put is a risk-management strategy using options contracts that investors employ to guard against the loss of owning a stock or asset.
All the essential information an investor needs to understand how the options market works and how to start trading options.
A naked put is an options strategy in which the investor writes (sells) put options without holding a short position in the underlying security.
PurposeThe purpose of this paper is to examine the relation between CEO option grants at the beginning of the class period (BCP) and investor reaction to announcement of restatement‐induced securit...
A covered call refers to a financial transaction in which the investor selling call options owns the equivalent amount of the underlying security.
A stock option gives an investor the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date. Learn more about how they work.
A bull put spread is an income-generating options strategy that is used when the investor expects a moderate rise in the price of the underlying asset.