Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...

Learn about the rainbow option, an exotic financial derivative linked to multiple underlying assets, offering distinct payout ...

Discover how options and futures differ in the financial market, focusing on obligations, trading hours, and their roles for investors and institutions.

The research views expressed herein are those of the author and do not necessarily represent the views of CME Group or its affiliates. All examples in this presentation are hypothetical ...

Once you know the basics of how options work, putting options trading strategies in place marks the next step. Many, or all, of the products featured on this page are from our advertising partners who ...

The options calculator below can help you with both call and put options. Feel free to test out some examples to find an option’s theoretical price. Then below the options profit calculator, you can ...

The popularity of stock options trading has soared in recent years, as retail stock traders have become more comfortable with managing their own investment portfolios and dipping their toes into the ...

A call option is a contract that gives you the right but not the obligation to buy a specified asset at a set price on or before a specified date. The cost of buying a call option is known as the ...

Options contracts are financial instruments that derive their value from an underlying asset. For the sake of simplicity, on this page, we’ll focus on options on equities (ie options where the ...