How to Read Option Prices Reading option prices takes a bit of getting used to, but even beginners find that it doesn’t take long to catch on to what they are seeing. Without being able to read option prices accurately, option traders might not clearly understand...

Option trading is structured to allow traders and investors the ability to leverage their money. This makes options a more effective instrument for investors to hedge or protect large stock positions they may be holding. That same leverage also makes it possible...

Selecting a Broker to Trade Options Option trading is done through a brokerage account. Brokers have become quite innovative, and many have software platforms optimized for both PCs and mobile devices. While almost all brokers allow for trading stocks and ETFs, all...

Plan and Practice Your Option Trades Professional airline pilots use flight simulators. Professional athletes spend countless hours practicing drills and memorizing moves. Professional musicians practice until everyone around them gets sick of hearing them play....

What is an Option Trading options can be the most potent way for individuals to maximize their financial gains. Gaining a better understanding of what drives option prices prepares you to use the right strategy at the right time and avoid mistakes common to less...