Option selling, also known as writing options, involves creating and selling contracts to buyers for a premium. It requires in-depth knowledge of risk management, market conditions, and strategic ...

Daniel Balakov / Getty Images Early exercise of an options contract is the process of buying or selling shares of stock under the terms of that option contract before its expiration date.

Options offer strategic investment choices for buying (call) or selling (put) stock at specified prices. Selling options can provide steady income from premiums if the stock doesn't hit the strike ...

Two powerful tools in the bearish (pessimistic) investor's arsenal are short selling and put options. These techniques, both aimed at capitalizing on downward price moves, are based on ...

Naked calls work by selling call options on a stock without actually owning the underlying shares. The option seller or writer hopes that the stock price will decrease or stay below the option's ...

The call owner can exercise the option, putting up cash to buy the stock at the strike price. Or the owner can simply sell the option at its fair market value to another buyer before it expires.

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 ...

Two powerful tools in the bearish (pessimistic) investor's arsenal are short selling and put options. These techniques, both aimed at capitalizing on downward price moves, are based on ...

If you're just starting your investment journey, you may not be familiar with the concept of short selling and put options. Both are reoccurring terms in investing. Although the lines of ...