Learn the difference between call and put options and how they work with an example and calculator to help you get started with options trading.

These numbers are put in reverse for the call option intrinsic value calculation. Intrinsic value = Put Strike Price - Underlying Stock’s Current Price. Intrinsic value = $30 - $40.

As a simple example, if a call option has a Delta of 0.25 and the underlying stock increases by $1, the value of the call option should increase by about $0.25. ( note that we're speaking of ...

Let's take a closer look at these results. Based on its 4.39% yield to call, the price of a 30-year callable bond is 105. According to our calculation, the price of a 30-year optionless bond would ...

For example, if you sell a naked call option with a strike price of $100, and the stock rises to $200, you'd be on the hook to buy 100 shares at $200 ($20,000) and sell them to the call option ...

A covered call is an options trading strategy that offers limited return for limited risk. A covered call involves selling a call option on a stock that you already own. By owning the stock, you ...