Stock Market

When people think of making money in the stock market they usually think about buying a stock at one price and selling it for a higher price. But an investor can also make money when a stock goes...

Futures contracts can be complex investments that usually only represent a small portion of an investor's portfolio due to the high risk associated with futures investments. Including options in...

A option contract is a binding legal agreement between two parties that gives "Party A" the right (but not obligation) to sell or buy an asset from "Party B" at a certain price and quantity. In...

There are many differences between employee stock options and employee stock ownership. According to the U.S. Securities and Exchange Commission, many people often confuse employee stock options...

Options enable buyers to buy or sell a particular asset on a specific future date if they so choose. There are several different kinds of options, including stock options, bond options, and...

Stock options (puts and calls) give an investor the opportunity to buy or sell a security at a specified price and at a given point in the future. Typically call options are purchased on bullish...

There has been a real explosion in options trading over the Internet in recent years. The advent of Internet stock trading has made trading options more available to the average investor. The cost...

The TSX index option is a method of speculating on movement of the Toronto Stock Exchange, the major financial exchange of Canada. The TSX is the index of 60 leading stocks on the exchange,...

Short selling a stock is a technique employed by speculators who attempt to make money from a stock declining in price. To be successful the speculator must time the market correctly. For the...

A stock option is a contract to buy or sell 100 shares of a stock at a certain price (the "strike price"), at some future date. Option contracts can be traded like shares of stock, and their...

Investing in the stock market takes time, research and of course money. Armed with knowledge and aware of the risks, rewards can be obtained. There are many ways to invest and buying stocks, and...

Options have been traded on stock exchanges since 1973. However, it is in the last decade that there has been a tremendous growth in the trading of these investment instruments. The options...

There are many ways in which to make money in the stock market. One way to make money on stocks that many people are unaware of is renting stock. Renting stock by offering "covered calls" on that...

The Dow Jones Industrial Average is probably the best-known of all stock indexes, and contains some of the biggest public companies in the country. It's also earned a reputation for dependable but...

REITs are a special type of stock market investment. Options are derivative securities that trade against many stock listings. Investors use REITs and their options to set up specific investment...

When you're investing in the stock market, you would normally expect to have to invest quite a lot of capital before you'd have any sort of significant regular income. However, by selling covered...

Derivatives are investment products whose value is derived from the another asset, commodity, market or value. Forward contracts, futures, swaps and options are all types of derivative contracts....

Index options are option contracts that trade against the price changes of a specific index instead of against specific stocks. Options are contracts to buy or sell the underlying security at a...

Selling put options is a way of buying stocks cheaper. It works especially well if you're waiting for a stock to fall in value before buying it. When you sell a put option, you're obligated to buy...

If you suspect that a particular stock is prepared to move substantially up or down in price, but don't want to risk a lot of money, you may be interested in trading stock options.

Options are trading vehicles used in financial markets. An option contract is an agreement that gives the holder the right, but not the obligation, to buy or sell an underlying instrument at a...

Stock options can be used for many purposes. Selling covered calls for income or using protective puts to protect stock positions are just two examples. Put options can also be used to increase...

Selecting an online stock brokerage is a necessary step when you decide to buy stocks online. An online stock broker is the tool in which you will buy and sell stocks, as well as other...

Using covered calls combined with limit sell to open orders is a good way to enforce the discipline of selling positions that has met your selling criteria and derive a little income as well. It...

Stock options are an effective way to encourage stellar performance for both executives and rank-and-file employees, but the system only works properly when there is an even playing field. ...

Options are the right to buy or sell the underlying security at a set price, called the strike price, for a specific period of time. Options allow traders to put different strategies in place that...

In 2008, The Chicago Board Options Exchange (CBOE) and the CBOE Stock Exchange (CBSX) announced the adoption of automated order executions for options. This allows individual investors more...

Options provide the right to buy or sell an underlying security at a specific price for a set period of time. The nature of options allow for multiple trading strategies that can provide profits...

Option contracts are the right to buy or sell the underlying security at a specific price for a set period of time. Several different option trading strategies can pay off if the underlying...

Stock options are the right to buy or sell an underlying stock for a set price for a certain period of time. Different option strategies can be used to profit if the underlying stock increases in...

Options and options on futures are called derivatives. These are contracts to buy or sell specific commodities (in the case of futures) or stocks (in the case of options) at a predetermined price...

Trading options is one way for the novice investor to get their feet wet in the market because they offer less risk at a lower cost than buying traditional stock.

If you understand what your stock options mean, the different taxes your profits could be subject to and when and why these taxes go into effect, there are number of strategies you can use when to...

If you have extra cash in your brokerage account, you can make money on a monthly basis by selling cash secured puts. When you sell a put, you give someone the right to sell to you stock at a...

Options trading can be very profitable, and strategies can be devised for portfolios of almost any size. Profitable options trading requires an in-depth understanding of how options function and...

Stock options are contracts that give the holder the right to buy or sell a certain stock at a predetermined price. Options contracts are derivative securities that allow traders and investors to...

Option trading rules pertain to a set of procedures related to a legally binding contract between two investors to buy or sell the right to instruments, such as stock, stock indexes or...

Many investors who have never bought or sold stock options are curious about them. You may have heard that it's possible to make a lot of money quickly with options, even doubling or tripling your...

Trading options is a powerful way to make money, but it requires much practice and discipline. Fees, commissions, the bid/ask spread, and the time value of contracts tend to make options a...

Some stock options, termed call options, give the holder the right to buy shares of a company at a specified "strike price" until the option expires (options giving the right to sell are called...

Writing covered calls is an investment strategy that aims to make a profit in the options market but without the usual risk. Options are risky instruments. In fact, every investor is required by...

This article will teach you how to earn monthly income by selling call options against stock that you currently own in your brokerage account. This income can be used to supplement any earned...

Futures and options have similar elements that investors should know in order to trade these securities successfully. Futures and options also use considerable leverage which will invariably...

An option is a contract between a buyer and seller that gives the buyer the right, but not the obligation, to purchase an underlying security at a set price and within a certain period of time.

Stock options are a form of speculative investment related to predicting how the price of a specific stock will rise or fall in a given period. While options can provide great return, they can...

Options are a confusing part of investing for many, and the terminology used commonly by investing professionals isn't helpful at deciphering this confusion. Optionable stock is stock that has...

This article is written for the investor that is familiar with trading options and has done a few covered call or naked put options. If you are unfamiliar with these two options strategies, see my...

This article is written for the investor that is familiar with trading stocks and has an interest in making a passive income while owning their stocks (and additionally making money from their...

Stock options are excellent financial vehicles to make money in the stock market. Stock options are versatile and can be used in various ways to generate money for investors who use them. Here...

Trading put/call options when done correctly can be a great way to enhance returns on a portfolio of individually owned stocks and/or reduce the risk of stock ownership. However, there is a large...