What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

A put option is a financial contract that provides an investor the right (but not obligation) to sell a stock at a designated price prior to an expiration date. Learn more about put options and how ...

Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...

The research views expressed herein are those of the author and do not necessarily represent the views of CME Group or its affiliates. All examples in this presentation are hypothetical ...

Learn the benefits and risks of options and how to start trading options Reviewed by Samantha Silberstein Fact checked by Vikki Velasquez Options are financial contracts that give the holder the right ...

The options calculator below can help you with both call and put options. Feel free to test out some examples to find an option’s theoretical price. Then below the options profit calculator, you can ...

Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She ...

The popularity of stock options trading has soared in recent years, as retail stock traders have become more comfortable with managing their own investment portfolios and dipping their toes into the ...

Options are a type of derivative, which means they derive their value from an underlying asset. This underlying asset can be a stock, a commodity, a currency or a bond. To help you understand the ...

NerdWallet defines a "call option" as a contract that gives you the right, but not the obligation, to purchase stock at a "strike price" before the call option's "expiration." The strike price is ...

Discover how options and futures differ in the financial market, focusing on obligations, trading hours, and their roles for investors and institutions.