CNBC's "Options Action" is your front row seat to the fastest-growing corner of the markets. With guidance from industry experts, exclusive data, and the latest news, Options Action explains complex ...

A covered call is an options trading strategy that offers limited return for limited risk. A covered call involves selling a call option on a stock that you already own. By owning the stock, you're ...

Options-based strategies have seen impressive growth in recent years, whether it’s through ETFs, mutual funds, or separately managed accounts. Investors have turned to alternatives, including ...

Contract size: Standard equity options contracts represent 100 shares of the underlying stock. So, for example, a quoted price of $2 per share translates to a total contract cost of $200 ($2 × 100 ...

Let's look at AMD stock using one of the less common strategies, a put ratio backspread. But it's not for the novice trader.

The risk with options straddles and options strangles is limited Options straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied ...

There are many strategies for traders to use when feeling bullish on an equity Stock traders who believe an underlying asset will increase in price can utilize bullish options strategies to make a ...

The stock market can feel like a roller coaster, with every day bringing new information for investors to consider. However, the market can feel tame and less volatile during some stretches. Many ...

In 1973, economists Fischer Black and Myron Scholes published “The Pricing of Options and Corporate Liabilities,” which was the birth of the modern option pricing model that is still today’s gold ...

Stock options in startup companies can be very profitable in the long term, but they come with special risks. Startup companies rely heavily on stock options to recruit, motivate, and retain the best ...