Its currently trading at 50 and the May 11 55 calls are trading at $1.20. You decide to sell 10 calls to someone for $1.20. They have a month to exercise this option at 55.

In fact, the first listed options contract made its debut on the Chicago Board Options Exchange in 1973. While an option today is very similar to what it was at that time, many things have changed.

Investors can use options trading as a way to insure their investments and limit risks in a cost-effective manner. Both call and put options can be in-the-money, out of the money or at the money.

If you're looking to start trading options but don't know where to start, in this article we discuss fundamental definitions, different strategies and provide you with actionable advice.

Of course, that's the 30,000 foot view of how options trading works. Let's dig a little deeper and look at the two basic types of options… What Are Puts and Calls in Options Trading?

Understanding Options Trading Strategies 1. Long Call – Capture Outsized Gains from Higher Stock Prices This is one of the preferred strategies for traders who are bullish. This means you are betting ...

Discover how options contracts help hedge risks and boost income by enabling the purchase or sale of assets at pre-set prices ...

Before we get into the nuts and bolts of options trading, it's critical to start with a basic definition of options. These derivatives are contracts that allow the holder to buy or sell shares of ...

An option is out-of-the-money when the security is trading at a higher value in the market as compared to the strike price. It is rarely recommended to sell an option that is out-of-the-money.

Day trading involves buying and selling financial instruments—such as stocks, options, or currencies—within the same trading day. By doing so, traders aim to capitalize on short-term price ...

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise. But this isn’t just another stream ...