In the financial world, options come in one of two flavors: calls and puts. The way that calls and puts function is actually ...

Learn how the stock replacement strategy lets investors use call options to match stock gains with less capital, offering flexibility in risk management.

What Is a Stock Option? A stock option is a contract giving its holder the right, but not the obligation, to buy or sell a stock at a given price before a specific date. There are two main types of ...

A naked call is an advanced strategy where an investor sells call options without owning the asset. It can be profitable if ...

Call options are one of the two major types of options, and investors have two ways to use them: either selling them or buying them. Buying, or going long, calls offers tremendous potential gains, and ...

XYLD replicates the S&P 500 index and sells monthly at-the-money SPX covered calls to generate results similar to the Cboe S&P 500 BuyWrite Index. Overall, historic performances have been good with a ...

An option price is the value of an option contract. The option price is determined by the extrinsic and intrinsic value of the option contract. Options are contracts that allow investors to buy or ...

Stock options are leveraged instruments that derive their value from an underlying security, such as a stock. This makes them different from stocks, which are perpetual in nature and represent an ...