Progress always involves risk. You can’t steal second base and keep your foot on first.” – Frederick B. Wilcox The world of ...

Options spreads tend to cap both potential profits as well as losses. A call option buyer stands to profit if the underlying asset, say a stock, rises above the strike price before expiry.

your maximum loss and maximum profit are limited. A covered call strategy involves writing call options against a stock the investor owns to generate income and/or hedge risk. When using a covered ...

The cost of buying a call option is known as the premium, and it can affect your ability to turn a profit on a call option. Call options can enable you to mitigate risk, by limiting the amount of ...

Or the owner can simply sell the option at its fair market value to another buyer before it expires. A call owner profits when the premium paid is less than the difference between the stock price ...

Multiply Your REIT Returns As we’ve seen, the VNQ ETF is in a price uptrend and is a good candidate for a call option purchase. When done correctly, trading options provides huge profit ...

During periods of fear or euphoria, the CBOE equity put-call ratio can inform your judgment by showing where sentiment may ...

Out of money (OTM) refers to a situation where the underlying asset's price is lower than the strike price of the call. This buyback may result in a profit if the option premium has decreased or a ...

If the option expires worthlessly, record the premium you received as profit. If the buyer exercises a call option against you, you must sell stock to the buyer at the strike price. Add the call ...