A stock option gives an investor the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date. Learn more about how they work.

Intrinsic value = (Stock price-option strike price) x (Number of options) Suppose a given stock trades for $35 per share. You own four call options that entitle you to buy 100 shares per call ...

If a trader buys an option with a $65 strike price, and the stock price rises to $80 per share, the options contract is in the money by $15 (80-65=15). Traders can use in-the-money calls to ride a ...

Options markets can help investors gauge how Tesla stock might react to earnings. Options give the holder the right to buy or sell a stock at a fixed price at some point in the future. Looking at ...

Stock options can refer to two related yet different things. The first, known as an exchange-traded option, is an agreement that can give you the option to buy or sell stock at a specific price by ...

Learn the basics of options trading, including calls, puts, strike prices, and how to use options for hedging, income generation, or speculation.