A collar options strategy protects stock holdings from significant losses while limiting potential gains. Investors create a collar by owning shares of a stock. They then purchase a put option below ...

Key Takeaways An option is a contract giving the buyer the right—but not the obligation—to buy (in the case of a call) or sell (in the case of a put) the underlying asset at a specific price on or ...

In options trading, a roll down changes an option position to a lower strike price, often used when expecting falling prices. Learn how this strategy works.

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 ...

Learn about the Christmas tree options strategy, involving six call or put options with various strikes designed for traders expecting a neutral to bullish market trend.