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 expiration date. That's the summary. Now, ...

Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...

Opposite to call options, a put gives the holder the right, but not the obligation, to sell the underlying stock at the strike price on or before expiration. A long put, therefore, is a short position ...

While many investors view options trading as a short-term strategy, it can also play an important role in a long-term ...

A collar options strategy protects stock holdings from significant losses while limiting potential gains. Investors create a collar by owning shares of a stock. They then purchase a put option below ...

Selling puts is an oft-overlooked option trade that can pair well with long-term investing strategies under certain circumstances. Many, or all, of the products featured on this page are from our ...

Options trading is the buying and selling of options contracts in the market, usually on a public exchange. Options are often the next level of security that new investors learn about following their ...