When the options expire, the price at which a seller of this call spread breaks even is $33.35 ($32.50 plus $0.85), meaning that you make at least a penny of profit on the option spread if eBay ...

An ITM option has a higher sensitivity to the price of the underlying stock. This is known as the option delta. The ITM call would gain more than an ATM or OTM call if the stock price increases by ...

Our Option Basics articles offer an easy-to-follow breakdown on the nuts and bolts of equity options (specifically simple calls and puts), whether you're looking for basic definitions of options ...

One option is called a contract, and each contract represents 100 shares of the underlying stock. Exchanges quote options prices in terms of the per-share price, not the total price you must pay ...

The options market is growing fast. But it can sometimes be a tricky market to understand, especially for those who are more familiar with trading things like stocks and ETFs. In the video above ...

Have you ever heard about trading options, but didn’t know where to even begin? I’ll give you a quick introduction into option contract basics to get you started and lay out a basic trade.

Learn the benefits and risks of options and how to start trading options Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Samantha (Sam) Silberstein, CFP ...

How Does the Option Assignment Process Work? The assignment process is done at random by the Options Clearing Corporation (OCC). A trader will become more acquainted with the operations of the OCC ...

Reviewed by Samantha Silberstein The strike price is the price at which a put or call option can be exercised. It's also known as the exercise price. Picking the strike price is one of three key ...