In this example, the trade breaks even at $20.50 per share, or the strike price of the long call plus the net cost of the ...

Here are a few key things that traders need to know. Some income-generating options strategies — short puts and uncovered calls, for example — offer the potential for substantial loss.

Are you putting on the trade to earn income from selling option premiums? For example, is the strategy part of a covered call against an existing stock position or are you writing puts on a stock ...

A long straddle is an options strategy that involves buying at-the-money puts and calls for the same security with the same expiration date in hopes of profiting off of expected price volatility ...

For example, a put option with a strike price of $60 and a ... A long put is probably the most straightforward put-trading strategy. If an investor is bearish on a stock (i.e., they think it ...

For example, you might purchase a long call option ... the method for calculating the tax liability will vary by the exact option strategy and holding period. Imagine Apple is trading at $110 ...

Although Global X, Amplify and Neos have fewer ETFs, their suites include some of the most popular ETFs with options (QYLD, XYLD, DIVO and SPYI). Option strategies can be tailored to meet different ...

In its most basic terms, a covered call is an options strategy where investors sell a contract to buy shares they already own. For example, an investor who owns Microsoft Corp. (ticker ...

In this example, as long as your options gain ... since in-the-money options were used. As with other option-buying strategies, rising implied volatility is a positive once the pairs trade has ...

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks ...