Explore 10 essential options strategies every investor should know, from basic calls and puts to advanced spreads, risks, rewards, and real-world use cases explained.

A strangle is a popular options strategy that involves holding both a call and a put on the same underlying asset. It yields ...

Options trading allows investors to limit their risk and leverage their capital, but it can also expose them to amplified losses. It’s one of the most flexible trading styles because of the many ...

Day trading options is a popular strategy for traders who seek to take advantage of short-term market fluctuations. Options are financial derivatives that give the holder the right, but not the ...

Put and call options are the building blocks of many options trading strategies. A call option gives the holder the right, but not the obligation, to buy a stock at a specified price (the strike price ...

Day trading options can be an exciting and potentially lucrative way to participate in the financial markets. Options are contracts that give traders the right to buy or sell an underlying asset at a ...

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 ...

Trading options is one of the best ways to benefit from fluctuating stock prices. By making calculated predictions and selling or buying options accordingly, you can gain a substantial profit. However ...

What Are Options Trading Levels? Options trading levels act as guardrails that help traders become more familiar with options before embracing complex trading strategies. Options traders get assigned ...

Iron condors are a potential trading strategy for sideways movement in the stock market. They combine a short strangle with a long strangle to limit risk. The maximum potential loss and profit of an ...

Forbes contributors publish independent expert analyses and insights. Making wealth creation easy, accessible and transparent. Options allow you to make money in the stock market regardless of whether ...

Options trading is the practice of buying or selling options contracts. Whether you buy or sell depends on how you think a stock will perform over a specific period of time. Many, or all, of the ...