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.

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Thomas J. Brock is a CFA and CPA with more than ...

Options can be used to implement a wide array of trading strategies, ranging from a simple buy and sell to complex spreads with names like butterflies and condors. In addition, options are available ...