This isn't like the usual market order of buying or selling a security, where the investor is obligated to do so. This nuance is part of the strategy around trading options; sometimes, it's in the ...
When you think about investing, selling options for income might not be the first strategy that springs to mind. Investors use options to hedge their positions and traders use them to make quick ...
There's plenty of risk involved with a short straddle, which is why these premium-selling strategies are reserved for experienced option traders with margin accounts. By selling both a call option ...
when a trader sells to open a call option (a "short call"), it's a bet the stock will stay at or below the strike price through expiration. In other words, this premium-selling strategy reveals ...
Covered call writing can generate extra income from stocks you already own, making it one of the most popular options strategies. Always have an exit strategy or hedge in place before selling ...
Options can be among the best financial tools for enhancing and protecting one's portfolio or even speculating about current events. Despite their relative complexity, options play a crucial role ...
Below, we examine the mechanics, advantages, and risks of short selling and put options. We'll explore how these strategies work, when and why investors might choose one over the other ...