An option is a financial instrument whose value is tied to an underlying asset; this is known as a derivative. Instead of buying an asset, such as company stock, outright, an options contract allows ...

An option is a financial contract that gives the buyer the right, but not the obligation, to buy or sell an asset, usually a stock, at a predetermined strike price, on or before a specific expiration ...

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 ...