Options are contracts that give the purchaser the right, but not the obligation, to buy or sell a security, such as a stock or exchange-traded fund, at a fixed price within a specific period of time.
Options can help investors manage risk. But buying and selling options also involves risk, and it is possible to lose money. It pays to learn about different types of options, trading strategies and the risks involved.
Investor Insights: Options Spotlight
Options A-Z: The Basics to The Greeks
To the uninitiated, the options market can seem to have its own language, with a number of unfamiliar terms. This article lays out some basic terms to help you become conversant in the language of options.
Trading Options: Understanding Assignment
Learn more about options assignments, an important concept that involves the seller's obligation to fulfill the terms of an option contract by either selling or buying the underlying security at the exercise price. This obligation is triggered when the buyer of an option contract exercises their right to buy or sell the underlying security.
Binary Options: These All-Or-Nothing Options Are All-Too-Often Fraudulent
Trading binary options can be an extremely risky proposition. Unlike other types of options contracts, binary options are all-or-nothing propositions. Trading binary options is made even riskier by fraudulent schemes, many of which originate outside the United States.
Binary Options Follow-Up Schemes: Don't Lose Money Twice
FINRA is issuing this alert to warn anyone involved in binary options trading—specifically through unregistered non-U.S. companies offering binary options trading platforms or services—to be on guard for potential follow-up frauds.