Options Basics: LEAPS

When considering any options strategy, think about Long-Term Equity AnticiPation Securities® (LEAPS®). You must be prepared to carry the position for a longer term. While using LEAPS® does not ensure success, having a longer amount of time for your position to work is...

Options Basics: Options Pricing

The key components of theoretical option pricing help investors anticipate price movements and understand price relationships between options. However, this predictive value has limits. Read More | Download Options Pricing Podcast (MP3)

Options Basics: Benefits & Risks

Most strategies used by options investors have limited risk but also limited profit potential. Options strategies are not get-rich-quick schemes. Transactions generally require less capital than equivalent stock transactions. They may return smaller dollar figures,...

What is an option?

An option is a contract to buy or sell a specific financial product. This product is known as the option’s underlying instrument or underlying interest. For equity options, the underlying instrument is a stock, exchange traded fund (ETF) or similar product. The...