A strangle is a popular options strategy that involves holding both a call and a put on the same underlying asset. It yields ...

Discover capped options, their mechanics, and benefits. Learn how they limit profits and trigger automatic exercise at specific price points for effective risk management.

When you purchase an options contract, you're purchasing the right to buy or sell a stock (or other security) at a set price. Many, or all, of the products featured on this page are from our ...

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

Derivative contracts were born because of people’s innate desire to circumvent uncertainty. A derivative contract is a contract drawn up between two parties, the price of which is derived based on an ...

Options that have an exercise price which may fluctuate above or below market value at performance options in that the exercise price of indexed options typically remains variable until the option is ...

Options on futures are a kind of contract that gives an investor the right to buy or sell futures at a specific price in a specific period. Options on futures, therefore, layer the "optionality" of ...

Options are short-term securities. The expiration date for most options can range from a few days to a few months. So, investors must make a decision towards the end of the options contract. If you ...