Learn how option premiums are determined by factors like stock price, time to expiration, and volatility. Master the basics to trade options wisely and confidently.

An option premium is the fee that the buyer of an option contract pays for the right to buy or sell stocks or other securities at a pre-set price when the contract’s time limit expires. From the ...

Tim Smith has 20+ years of experience in the financial services industry, both as a writer and as a trader. Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who ...

What is a Put Option? A purchase of a put option allows you the right to sell the underlying at a strike price. You can use puts to protect a long position from a price decline, but you can also use ...

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).

A stock option is a contract that gives you the right to buy or sell a stock at a certain price in the future. Stock options can be used to hedge against potential losses in your portfolio. Employee ...

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 ...

Selling puts is an oft-overlooked option trade that can pair well with long-term investing strategies under certain circumstances. Many, or all, of the products featured on this page are from our ...

Although opposed by some firms in the health care industry, a public option would bring down families' health care costs and improve the quality of coverage—even for people who remain in private ...

Finding durable flooring can be a bit of an undertaking when you deal with constant humidity, but luckily, options are ...

Senate Majority Leader John Thune walks toward the Senate floor after the Senate stayed in session throughout the night at the U.S. Capitol Building in Washington, D.C., on July 1, 2025. Senate ...