Learn how credit spread options help manage credit risk, understand their mechanics, and explore various types of this financial derivative.

In the financial world, options come in one of two flavors: calls and puts. The way that calls and puts function is actually fairly simple. Call options grant buyers the right, not obligation, to ...

A put option grants its buyer the right (but not the obligation) to sell shares of an underlying security on or before a specific expiration date at a particular strike price. A put option is an ...

Options are short-term securities. The expiration date for most options can range from a few days to a few months. So, investors must make a decision towards the end of the options contract. If you ...

Lucas Downey is the co-founder of MAPsignals.com, and an Investopedia Academy instructor. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market ...

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 ...

In options trading, a "strangle" refers to an options position that consists of both a call and a put option on the same underlying stock, with the contracts having identical expirations but differing ...