We independently evaluate all of our recommendations. If you click on links we provide, we may receive compensation. Michael is a former senior editor of investing and trading products for ...

We independently evaluate all of our recommendations. If you click on links we provide, we may receive compensation. Learn what it takes to trade options Gordon Scott has been an active investor and ...

An option is a contract that allows the buyer to buy or sell shares of stock at an agreed-upon price. Investors can get outsized returns by using options instead of simply owning stocks. Be forewarned ...

Options trading is the buying and selling of options contracts in the market, usually on a public exchange. Options are often the next level of security that new investors learn about following their ...

The stock market gives investors many opportunities to build wealth. While many people get started with trading stocks, some investors hear about options trading and may want to give it a try.

Picking the right options trading strategy for you will depend on what direction you think a stock’s price will go and your capacity to absorb losses. Buying an option, or “going long,” will have less ...

When trading out-of-the-money (OTM) options, the objective is to maximize your leverage on the trade. While In-the-money (ITM) options are more expensive, they are more likely to maintain their ...