Options

Learn about options trading, from how to place your first options trade to more advanced topics. Or explore other trading topics:

Today's Options Market Update

Stocks have recovered off the morning lows as conviction (in either direction) appears to be constrained by debt ceiling discussions.

Options Trading: Basics of a Covered Call Strategy

Understanding how this options strategy works could help you potentially earn income from stocks you own, but it's not without risks, so take the time to learn what's involved.

Trading Options in an IRA

Trading options in an IRA is possible for those who qualify. Here are some IRA options trading strategies that could open up some possibilities for your portfolio.

What Happens to Options When Stocks Split?

When a company announces a stock split, options are adjusted, but position values will remain unchanged in most cases.

Can Protective Puts Provide a Temporary Shield?

Protective puts are one way to hedge stocks against a significant price drop. But investors should consider factors like time decay and volatility before considering this strategy.

Options Strategy: Selling Put Spreads to Buy Stock

A defined-risk strategy, like selling a put spread, can potentially help traders put a limit on their risk, but it's important to understand the risks.

Large Bid/Ask Options Spreads in Volatile Markets

The reason bid/ask options spreads get wider during volatile markets has to do with how market makers manage trades during times of high volatility.

Options Exercise, Assignment, and More: A Beginner's Guide

Learn about options exercise and options assignment before taking a position, not afterward. This guide can help you navigate the dynamics of options expiration.

Meet the Options Greeks

Meet some of the most important greeks—delta, gamma, theta, vega, and rho—and see how they can be used in your options trading.

Options Volatility: The VIX, Rule of 16, and Skew

Learn how to measure volatility using the Cboe VIX, rule of 16, and skew in your options trading.