Options trading can be complex, and the trading jargon may confuse even experienced investors and traders. Two of the most common options contracts to understand are call and put options. Here’s what ...

What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

Learn the benefits and risks of options and how to start trading options Reviewed by Samantha Silberstein Fact checked by Vikki Velasquez Options are financial contracts that give the holder the right ...

Call options are a type of option that increases in value when a stock rises. They’re the best-known kind of option, and they allow the owner to lock in a price to buy a specific stock by a specific ...

The call vs. put distinction can be confusing to options-trading beginners. Here’s what you need to know about the difference between puts and calls. Many, or all, of the products featured on this ...

A put option is a financial contract that provides an investor the right (but not obligation) to sell a stock at a designated price prior to an expiration date. Learn more about put options and how ...

What Is a Stock Option? A stock option is a contract giving its holder the right, but not the obligation, to buy or sell a stock at a given price before a specific date. There are two main types of ...

Put options are a type of option that increases in value as a stock falls. A put allows the owner to lock in a predetermined price to sell a specific stock, while put sellers agree to buy the stock at ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J Catalano is a CFP and Registered ...

An option is a contract that allows the buyer to buy or sell shares of stock at an agreed-upon price. Investors can get outsized returns by using options instead of simply owning stocks. Be forewarned ...

Vice President of Growth & Engagement at CBS News and Stations Jennifer Earl is the Vice President of Growth & Engagement at CBS News and Stations. Jennifer has previously written for outlets ...

The options calculator below can help you with both call and put options. Feel free to test out some examples to find an option’s theoretical price. Then below the options profit calculator, you can ...