Learn about net option premium, the complete amount paid by traders when selling and purchasing options simultaneously.

When you purchase an options contract, you're purchasing the right to buy or sell a stock (or other security) at a set price. Many, or all, of the products featured on this page are from our ...

Stock options are contracts that give the holder the right, but not the obligation, to buy or sell a specific number of shares of a company's stock at a predetermined price within a set time period.

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Option margin is the collateral (cash or securities) an investor must deposit before writing or selling options ...

In options trading, a "strangle" refers to an options position that consists of both a call and a put option on the same underlying stock, with the contracts having identical expirations but differing ...

Option contracts that remain dormant until a trigger point (the barrier price) is reached, at which point the call or put option is activated, and results either in a long or short options position, ...

An option traded off-exchange, as opposed to a listed stock option. The OTC option has a direct link between buyer and seller, has no secondary market, and has no standardization of striking prices ...

Options on futures are a kind of contract that gives an investor the right to buy or sell futures at a specific price in a specific period. Options on futures, therefore, layer the "optionality" of ...