Options Trading Strategy & Education
Options offer alternative strategies for investors to profit from trading underlying securities. Learn the basic options strategies such as calls, puts, covered calls, and protective puts.
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Buying vs. Selling Options: Which Is Riskier?
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How Options Are Priced
![Bull Call Spread](https://www.investopedia.com/thmb/5DccY8NtlvzWFzG73t5rzPye1WM=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/bullcall-spread-4200210-1-blue-759c3882be664370823655c8d7ac9bb5.jpg)
Bull Call Spread: How This Options Trading Strategy Works
![Credit Spread: The difference in yield between two debt securities of the same maturity but different credit quality.](https://www.investopedia.com/thmb/u8W7SLMpCB44FR8g3j1aAvuearg=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/creditspread.asp-final-b0de117002174da5b6c62c3069181a8f.jpg)
Credit Spread: What It Means for Bonds and Options Strategy
![Spread: The difference or gap that exists between two prices, rates, or yields.](https://www.investopedia.com/thmb/w3gXV7FLbfa8z23BH_k0Knxu1os=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/spread.asp_final-406ca3c1e1fc4d26a9da063de696a7b1.png)
Spreads in Finance: The Multiple Meanings in Trading Explained
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What Are Stock Options? Parameters and Trading, With Examples
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Volatility: Meaning in Finance and How It Works With Stocks
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Why Trading Volume and Open Interest Matter to Options Traders
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LEAPS: How Long-Term Equity Anticipation Securities Options Work
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4 Ways to Trade Options
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At the Money (ATM): Definition & How It Works in Options Trading
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Buy to Open: Definition, What It Means in Trading, and Example
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American vs. European Options: What's the Difference?
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Short Selling vs. Put Options: What's the Difference?
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In the Money vs. Out of the Money: What's the Difference?
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Put-Call Ratio Meaning and What It Says About How to Gauge the Market
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Exercise Price: Overview, Put and Calls, In and Out of The Money
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Leg: Definition in Trading, How It Works, and Strategy Types
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Protective Put: What It Is, How It Works, and Examples
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Rights Offering (Issue) Definition, Types, Pros and Cons
![A trader holding the wrong side of an options contract holds their head in despair as a computer screen shows the underlying stock in a sharp decline.](https://www.investopedia.com/thmb/muR6ku52ARNvuDNa4cnmnm6snj8=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/WhatIsaShortCallinOptionsTradingandHowDoesItWorkGettyImages-1316914724-ea2dc35943344efbbd4267be98deb191.jpg)
What Is a Short Call in Options Trading, and How Does It Work?
![Experienced mentor showing beginner stock trader how to buy call options.](https://www.investopedia.com/thmb/aFsUU3WOXlZILFC-KHJvq51XWnA=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/ABeginnersGuidetoCallBuying-e0433db389da44ebb6dee9682d72e612.jpg)
A Beginner’s Guide to Call Buying
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Options Trading Decoded: 5 Key 'Greeks' You Must Understand
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Introduction to Put Writing
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American Option Definition, Pros & Cons, Examples
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Deep in the Money: Definition and How They're Used in Trade
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Triple Witching: Definition and Impact on Trading in Final Hour
![Options Contract](https://www.investopedia.com/thmb/nsN63_PWFcL7MaG6DugRpGqHUSM=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/optionscontract.asp-FINAL-369818cf68054f9eb1b4139dd3a413e7.png)
Options Contract: What It Is, How It Works, Types of Contracts
![spx.jpg](https://www.investopedia.com/thmb/VqKJE9znVSFsI_I_zL8v6NDV-DM=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/spx-56a6d20d3df78cf7729067dd.jpg)
What Is a Call in Finance? Call Options and Call Auctions
![An options trader in a co-working space looking at a laptop exploring the values of various stock options and the time remaining on the contracts.](https://www.investopedia.com/thmb/xGT6Rc8pu8-bT4pn8bF6VApHA50=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/TimeValue-6bf165825d29469f8857c0a112ea2451.jpg)
Time Value: Definition, Role in Extrinsic Value, and Calculation
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Interest Rate Call Option: What it is, How it Works, Example
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How Long Is an Options Expiration Cycle?
![A trader uses call and put options with the same strike price and expiry to create an offsetting forward position.](https://www.investopedia.com/thmb/PGYXq6UzzgOQbd5_ywditDKpz2w=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/SyntheticForwardContractDefinitionHowItWorksExampleGettyImages-1226092248-07f7845635834dacb204c326b432237f.jpg)
Synthetic Forward Contract: Definition, How It Works, Example
![Investor viewing company share price market data on a laptop computer](https://www.investopedia.com/thmb/AuGehOf_D4N25iNBTdf3_CKfLhY=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/investor-viewing-company-share-price-market-data-on-a-laptop-computer-713768437-c4eda9ee28224ad6be4f6912822227af.jpg)
Using Open Interest to Find Bull/Bear Signals
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Exercise: Definition and How It Works With Options
![Charting stocks](https://www.investopedia.com/thmb/AcQSCTjEx-QvQyVU-B3zGb4ZhqY=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/chart-1905224_19201-b711b1bb0a874ebf809a19761d05902d.jpg)
Is It Possible to Trade Forex Options?
![Smartphone on a table showing financial data with papers on the table showing pie charts](https://www.investopedia.com/thmb/lZaFRsmtFF0hg8IWM9TItTM5lzg=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1169678734-b9386f740a4447d5bf17e14cf7fa0613.jpg)
SPAN Margin: Definition, How It Works, Advantages
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Zero Cost Collar: Definition and Example
![Investor using a tablet and computer screen to trade assets](https://www.investopedia.com/thmb/2zE06l2OoZvX0cY9SPnw7uPJe24=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/INV_Spot_Bitcoin_ETF_GettyImages-1403384080-6cd708eb9a28449db2b17233ac239532.jpg)
Index Option: Option Contracts Based on a Benchmark Index
![A trader monitors offers in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange](https://www.investopedia.com/thmb/i4BrPbEnC0583m-HkOXw64RgKXI=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-485109234-34e3e03d55564a579688cd96068af669.jpg)
Quadruple (Quad) Witching: Definition and How It Impacts Stocks
![Woman staring thoughtfully at a computer monitor](https://www.investopedia.com/thmb/_7P6K85MSTmqcHwfw3oFt4AuPnY=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-2158624460-95271fb1d63c4ef88c9da709f8ce6183.jpg)
What Is Early Exercise? Benefits to Selling a Call Option Early
![Stock trader on the floor of the New York Stock Exchange.](https://www.investopedia.com/thmb/zjI_v-H6RqQtaEF0sbHImJ1NxdQ=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1021285048-5565d696c9fe4e4eb523ce1d2170b3bf.jpg)
Options Trading Strategies: Understanding Position Delta
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Implied Volatility: Buy Low and Sell High
![Man sitting on his couch looking at a chart on his phone](https://www.investopedia.com/thmb/ehQFb3-CG4LRi3DSVF4a7pF_7Fc=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1360375872-384f250a192f40e681b3ff23863e0b5e.jpg)
How To Gain From Selling Put Options in Any Market
![A person at a lap top with options figures overlaid the entire picture.](https://www.investopedia.com/thmb/7GGxU-ZIdVuMTnmv7uToUYCnu4Y=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1322205553-89ace44593d440e7a6159ca60bc0fc58.jpg)
Best Options Trading Platforms For February 2025
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Balloon Option: What It is, How It Works
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Top 7 Mistakes When Trading in Cheap Options
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Eurex: What it is, History, Trading Technology
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Put Calendar: What It Is, How It Works, Example
![Delta Hedging: An options strategy that seeks to reduce the directional risk associated with price movements in the underlying asset.](https://www.investopedia.com/thmb/tfl36QLUOb7FGB7m2WT4LY0FGoI=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/deltahedging.asp-final-0f7419fd8d574f35a8db99c1339fec37.png)
Delta Hedging: Definition, How It Works, and Example
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Risk Reversal: Definition, How It Works, and Examples
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Options Industry Council (OIC): What It is, How it Works
![Woman checking stock market charts on a computer monitor](https://www.investopedia.com/thmb/X6-KbQU8yMGEj_ZD_ooY9Agqywk=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/INV_CryptoStocksTrading_GettyImages-1453648525-109e0a68c3064f9a9bdbddc3de638a18.jpg)
Benefits of a Covered Call ETF
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What Is a Naked (Uncovered or Short) Put and How Does It Work?
![Two traders work on the floor of the New York Stock Exchange in front of stock charts](https://www.investopedia.com/thmb/vnCf8ytrf3Af9NuirS_0FnQnt7c=/800x533/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1447167892-6f0e10826b324a6a956eb12731ccff1b.jpg)
A Guide to Trading Binary Options in the US
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Intrinsic Value Defined and How It's Determined in Investing and Business
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Assignment: Definition in Finance, How It Works, and Examples
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The Basics of Covered Calls
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Put Option vs. Call Option: When To Sell
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Put-Call Parity: Definition, Formula, How it Works, and Examples
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What Is Delta in Derivatives Trading, and How Does It Work?
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Buy-Write Definition, Strategy, How It Works, Examples
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What Is a Naked Option? How Naked Calls and Puts Work
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Oil Volatility and How to Profit From It
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Lookback Option: Definition, Pricing Examples, Fixed Vs. Floating