A strangle is a popular options strategy that involves holding both a call and a put on the same underlying asset. It yields a profit if the asset’s price moves dramatically either up or down.

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Gordon Scott has been an active investor and technical analyst or 20+ years. He ...

Options trading is the practice of buying or selling options contracts. Whether you buy or sell depends on how you think a stock will perform over a specific period of time. Many, or all, of the ...

Options are a financial instrument that you can use for a number of different purposes: as protection against expected moves in an underlying instrument such as a stock; as a way to use leverage to ...

Forbes contributors publish independent expert analyses and insights. Making wealth creation easy, accessible and transparent. A margin call happens when a broker demands an investor bring their ...

To understand leverage in options trading, we need to look at how options contracts work briefly. An option gives the owner the right (but not the obligation) to buy or sell an asset at a specified ...

What Is Automated Options Trading? Automated options trading, also known as algorithmic trading, does the trading for you. You won’t have to worry about picking options or sticking with your exit plan ...

Options on futures are a kind of contract that gives an investor the right to buy or sell futures at a specific price in a specific period. Options on futures, therefore, layer the "optionality" of ...

Discover what 0DTE options are and why they have become massively popular in recent months. What is a 0DTE option? A 0DTE (Zero Days To Expiration) option is an options contract set to expire at the ...

A stock option is a contract that gives you the right to buy or sell a stock at a certain price in the future. Stock options can be used to hedge against potential losses in your portfolio. Employee ...

Knowing what to buy and when to buy it is only half of the trading process. Savvy professionals will tell you that knowing when to sell is just as important, if not more important. It's all about ...

Day trading options can be an exciting and potentially lucrative way to participate in the financial markets. Options are contracts that give traders the right to buy or sell an underlying asset at a ...