Stock options are powerful investment vehicles investors use to generate profit and mitigate risk in their portfolios. Learn how they work and effective strategies.

Stock options are contracts that represent the right to buy (or sell) shares of the underlying equity at a predetermined price, and by a predetermined date. Stock options are traded in units ...

When the dot-com boom turned to bust two decades ago, stock options were one of the biggest pain points. As the market reached its peak, employees took risks with their option grants that bit them ...

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 ...

This is simple arithmetic: options are cheaper to buy than the stocks from which they derive their value. If a stock is trading at $50 per share, it would cost you $5,000 to buy 100 shares.