See how we rate investing products to write unbiased product reviews. Stock options can refer to two related yet different things. The first, known as an exchange-traded option, is an agreement ...

A stock option is a contract that gives you the right to buy or sell a stock at a certain price in the future. Stock options can be used to hedge against potential losses in your portfolio.

Today, we take a look at options trading. As we know, options markets are very different to stocks – and their spreads are no exception. Black-Scholes was revolutionary in helping to price options.

shorting stocks and buying put options. When you sell stocks short, you're borrowing shares from someone else, selling them for market price, and then buying them back at a later price to return ...

Image source: The Motley Fool A call option is the right to buy a stock at a specific price by an expiration date, and a put option is the right to sell a stock at a specific price by an ...

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