An investor would sell a put option if their outlook on the underlying was bullish and would sell a call option if their outlook on a specific asset was bearish.

A seemingly large percentage of options traders don't fully understand put/call parity and how options are priced. This causes them to lose money trading. This article is intended to help traders ...

Discover how reverse greenshoe options stabilize IPO prices, including their function, examples, and historical background, ...

The thesis for this article is already captured in the title. In the subsequent sections, I will argue why the combination of elevated P/E ratios for the overall equity market and muted level of ...

You’ve been looking to start another income stream and have your eye on a particular security. One problem: You don’t have the cash to buy it. So you’re considering diving into a short put options ...

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 ...

As an options broker for 15 years, I bought plenty of put options for customers aiming to hedge a long-term portfolio of stocks like SPY. From cursory account encounters, and in many instances, these ...