An option is a financial instrument whose value is tied to an underlying asset; this is known as a derivative. Instead of buying an asset, such as company stock, outright, an options contract allows ...

Option trading can deliver tremendous profits, but the flip side of those gains is the potential for tremendous losses, since option trading is a zero-sum game. Those who are just getting started with ...

Options are a type of derivative, meaning they “derive” their value from the securities they’re linked to. Options are also leveraged, meaning a smaller amount invested in them generates larger gains ...

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 ...