If you're new to options trading, you might be confused by the many terms, such as vertical options, straddles, and strangles. The following article will introduce you to each type and explain why ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with more ...

Put and call options are the building blocks of many options trading strategies. A call option gives the holder the right, but not the obligation, to buy a stock at a specified price (the strike price ...

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 ...

An options strangle is a strategy to profit from price swings in either direction of an underlying asset. How does an options strangle work and what are the risks and rewards involved? Benzinga ...

Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. A strangle is a variation on the straddle, and it presents some interesting possibilities in terms of profit ...

Options trading is the buying and selling of options contracts in the market, usually on a public exchange. Options are often the next level of security that new investors learn about following their ...

Three weeks ago, we discussed the Straddle – in which we would buy a call and a put simultaneously with the same strike and the same expiration date. The intention was to capitalize on the recent drop ...