Explore 10 essential options strategies every investor should know, from basic calls and puts to advanced spreads, risks, rewards, and real-world use cases explained.

A bull put spread is an options strategy where you sell a put option at a higher price and buy one at a lower price for the same asset and expiration date. This helps generate income and limits losses ...

In the classic science-fiction film “The Matrix,” the main character, Neo, learns a thought-provoking lesson from a wise child, who apparently uses telekinetic powers to bend a spoon. As the boy tells ...

When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Options are an increasingly popular way for traders to play the market, and it’s no surprise why. Options let you make some big money if you’re right, potentially multiplying your money, perhaps in ...

The Simplify Enhanced Income ETF uses options spreads to generate higher yields, but recent active trading strategies have led to significant losses. Retail investors must distinguish between fixed ...

Robinhood Markets (HOOD) stock bounced off support at the 110 level on Friday as it aims to evolve from a trading app into a ...

Simplify Barrier Income ETF (SBAR) offers income via a low-duration Treasury sleeve and barrier put spread options on major ...

Trading options can be a complicated process. Information overload among the uninitiated is prevalent, as a lot of options strategies are available and traders need to evaluate all of the possible ...

A bull call spread is an options strategy used to profit from moderate increases in the underlying asset’s price while limiting risk. It involves buying a call option at a lower strike price and ...