Learn the basics of options trading—what calls and puts are, how options work, and strategies to hedge or speculate—with practical examples for beginners.

Long call and covered call approaches both involve call options, but they serve very different purposes in a portfolio. A long call is typically a speculative strategy, allowing investors to profit ...

An option is a financial instrument whose value is tied to an underlying asset; this is known as a derivative. Instead of buying an asset, such as company stock, outright, an options contract allows ...