
Options: Types, Spreads, and Risk Metrics - Investopedia
Dec 4, 2025 · Options are a type of financial instrument that grant their buyers the right, but not the obligation, to buy or sell an underlying asset at a specified strike price.
Option (finance) - Wikipedia
In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or …
OPTION Definition & Meaning - Merriam-Webster
choice, option, alternative, preference, selection, election mean the act or opportunity of choosing or the thing chosen. choice suggests the opportunity or privilege of choosing freely. option implies a power …
What are options, and how do they work? | Fidelity
Sep 30, 2024 · An option is a legal contract that gives you the right to buy or sell an asset (think: a stock or ETF) at a specific price by a specific time. They are known in the financial world as "derivatives."
Understanding Stock Options: Basics and Strategies
Feb 28, 2025 · Stock options are powerful investment vehicles investors use to generate profit and mitigate risk in their portfolios. Learn how they work and effective strategies.
Options | Definition, Types, Strategies, Factors, Pricing, & Risks
Sep 15, 2025 · Options are financial contracts that provide the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and time. Options trading allows investors to profit from …
Introduction to Options | Charles Schwab
An option is a contract that represents the right to buy or sell a financial product at an agreed-upon price for a specific period of time. You can typically buy and sell an options contract at any time before …
Understanding Options: Strategies, Types & Risks | BlackRock
Options are derivatives, meaning they “derive” their price from that of another security. While many investors may consider them complex, options can help improve risk-adjusted outcomes when used …
What is an Option? - optionseducation.org
An option is a contract to buy or sell a specific financial product known as the option's underlying instrument or underlying interest.
Options - The Balance
A call option, or the right to buy an asset at a set price, is in the money if the current price of the asset is higher than that agreed-on price. A put option, or the right to sell an asset at a set price, is in the …