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 ...

ITM options are more conservative, while more aggressive traders may prefer OTM contracts When selecting the right option to buy, a trader has several choices to make. One is whether to purchase an in ...

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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 ...

Learn how to trade weekly options, understand key differences from monthly options, and use smart strategies to boost short-term trading success. Options trading is taking the stock market by storm.

We independently evaluate all of our recommendations. If you click on links we provide, we may receive compensation. Michael is a former senior editor of investing and trading products for ...

When selecting the right option to buy, a trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option. While the goal for "vanilla" buyers is ...

We independently evaluate all of our recommendations. If you click on links we provide, we may receive compensation. Stella Osoba is the Senior Editor of trading and investing at Investopedia. She ...