A strangle is a popular options strategy that involves holding both a call and a put on the same underlying asset. It yields a profit if the asset’s price moves dramatically either up or down.

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Gordon Scott has been an active investor and technical analyst or 20+ years. He ...

To understand leverage in options trading, we need to look at how options contracts work briefly. An option gives the owner the right (but not the obligation) to buy or sell an asset at a specified ...

Options trading is a dynamic, fast-moving investment sector where making the right moves at the right time can earn an options trader a lot of money very quickly. One of the most important keys to ...

A stock option is a contract that gives you the right to buy or sell a stock at a certain price in the future. Stock options can be used to hedge against potential losses in your portfolio. Employee ...

Options are a financial instrument that you can use for a number of different purposes: as protection against expected moves in an underlying instrument such as a stock; as a way to use leverage to ...

Options traders typically want their option contract to be “in the money,” meaning the contract has greater value than buying or selling based on current market values. But depending on your risk ...

Forbes contributors publish independent expert analyses and insights. Making wealth creation easy, accessible and transparent. A margin call happens when a broker demands an investor bring their ...

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 ...

Discover what 0DTE options are and why they have become massively popular in recent months. What is a 0DTE option? A 0DTE (Zero Days To Expiration) option is an options contract set to expire at the ...

Options trading allows investors to invest less money and earn higher returns compared to buying and selling stocks Many investing platforms are available, each with their own pros and cons Robinhood ...

Delta is a measure related to options that traders can use to predict option price movements based on the change in the underlying asset. It can also be used to assess the probability that a given ...