Options can be used to express specific trading views, but before diving into options trading, you must understand how an option premium works — a vital component that can make or break your trading ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

In options trading, the extrinsic value of an option represents the portion of the option's price that's based on factors other than the immediate value of exercising it. Also known as “time value,” ...

Selling premium is a popular trading strategy that involves selling options contracts to other investors. Traders and investors can generate income for their long-term portfolios using strategies like ...

Before we get into the nuts and bolts of options trading, it's critical to start with a basic definition of options. These derivatives are contracts that allow the holder to buy or sell shares of the ...

When it comes to investment tools and strategies, few are as valuable and versatile as covered calls. But what is a covered call? Here, we take a closer look at covered calls, including the pros, cons ...