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 ...

Options trading can sound complicated and risky to novices, so beginners often steer clear. While their hesitation is understandable, not much is required to get started — but the process, terminology ...

Picking the right options trading strategy for you will depend on what direction you think a stock’s price will go and your capacity to absorb losses. Buying an option, or “going long,” will have less ...