Learn about the financial implications when an option reaches its strike price, and the concepts of moneyness, intrinsic value, and why "at the money" matters for investors.

An investor would sell a put option if their outlook on the underlying was bullish and would sell a call option if their ...

While many are familiar with buying stocks in hopes of profiting, the strategies for benefiting from price declines are often less understood. Two powerful tools in the bearish (pessimistic) ...

Options contracts give the right to buy or sell stock at set prices, potentially profitable. There are call (buy) and put (sell) options; employee stock options are typically call options. Options' ...

Overlay Shares implements the strategy through put spreads, pairing each short put with a lower-strike long put to establish ...

The thesis for this article is already captured in the title. In the subsequent sections, I will argue why the combination of elevated P/E ratios for the overall equity market and muted level of ...

The combination of greater accessibility, better education and highly unpredictable markets makes options an essential part of the modern trading tool kit. Using options thoughtfully and as a ...

Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...

What Is a Stock Option? A stock option is a contract giving its holder the right, but not the obligation, to buy or sell a stock at a given price before a specific date. There are two main types of ...