Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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 stock at ...

Call options are a type of option that increases in value when a stock rises. They’re the best-known kind of option, and they allow the owner to lock in a price to buy a specific stock by a specific ...

Overlay Shares implements the strategy through put spreads, pairing each short put with a lower-strike long put to establish a defined-risk options overlay. For some investors, selling puts may offer ...

On expiry day, options trading can be highly volatile, with quick price changes and premium fluctuations. Traders must grasp ...