Learn the basics of options trading, what calls and puts are, how options work, and strategies to hedge or speculate with practical examples for beginners.

Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...

Most people know that a stock option is a right granted by a corporation to a person that gives that person the right to purchase stock in the corporation under specified conditions and at a specified ...

Options trading can be one of the most lucrative ways to trade in the financial markets. Traders only have to put up a relatively small amount of money to take advantage of the power of options to ...

Options are versatile financial instruments that offer traders and investors a unique way to engage with the markets. Whether you're looking to amplify gains, hedge against potential losses, or ...

Selling puts is an oft-overlooked option trade that can pair well with long-term investing strategies under certain circumstances. Many, or all, of the products featured on this page are from our ...

Selling put options before a company's earnings announcement can be a valid strategy for options traders seeking to capitalize on volatility. One of the primary reasons traders may consider selling an ...

Overlay Shares implements the strategy through put spreads, pairing each short put with a lower-strike long put to establish a defined-risk options overlay. For some investors, selling puts may offer ...