Put options are a type of option that increases in value as a stock falls. A put allows the owner to lock in a predetermined price to sell a specific stock, while put sellers agree to buy the ...

A stock option is a financial contract that gives the owner the right, but not the obligation, to buy or sell a stock at a fixed strike price by the expiration date. Each contract is for 100 shares of ...

Call options gain value from a move higher in the underlying stock, while put options increase in value when the underlying stock moves lower. However, stock options can be bought and sold in a ...

Index funds provide exposure to credit and duration risk but don't take advantage of Volatility Risk Premium. The Overlay ...

Together, these two options, a long put and a short call, create a "collar" around the stock price, capping potential upside and downside. In falling markets, this strategy offers protection that ...

For example, fund managers often buy put options on a stock market index to protect their portfolio so that if the stock market falls, the profits on the option will offset the losses on the ...

Long-term equity anticipation securities ... a portfolio of stocks," Ryan says. "If the stock price falls, the value of the LEAPS put option will increase, offsetting some of the loss in the ...

Before expiration, OTM and ITM call options can gain a combination of extrinsic and intrinsic value if the stock moves swiftly to the upside. Long call options that expire ITM by $0.01 or more will be ...

A put option does something similar, but a holder has the right to sell shares for a fixed price. An option's value is tied to how volatile a stock is, how long the option has left to expiration ...