Options trading can be one of the most lucrative ways to trade in the financial markets. Traders only have to put up a relatively small amount of money to take advantage of the power of options to ...

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 ...

The stock market gives investors many opportunities to build wealth. While many people get started with trading stocks, some investors hear about options trading and may want to give it a try.

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 ...

The strike price is the price at which a put or call option can be exercised. It's also known as the exercise price. Picking the strike price is one of three key decisions an investor must make when ...

With stock options and other equity awards, you must link the necessary financial and tax decisions to your own personal situation and goals. Few financial endeavors are more complex than coming up ...

RSUs and stock options differ significantly in how they’re granted and taxed, as well as the level of risk to investors. Many, or all, of the products featured on this page are from our advertising ...