Options are among the most misunderstood investments, as many investors aren't familiar with even the most basic elements of how options work. Many people mistakenly assume that options are risky, ...

In a volatile market, companies may see their stock value drop significantly. This can result in employees and other service providers holding stock options that are “underwater” or “out of the money” ...

Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...

This blog is the first post in a four-part series. Part I will provide a high-level summary of stock option basics. In recent years, and at least in part due to the extremely tight labor market, ...

Options trading can be one of the most lucrative ways to trade in the financial markets. Traders only have to put up a relatively small amount of money to take advantage of the power of options to ...

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 decisions an investor must make when ...

Stock options offer employees a chance to own a piece of the companies they work for — and maybe even make a nice financial gain if the company’s share price rises in value. Options are granted for ...

If options are part of your compensation package, it’s worth your while to get familiar with how they work generally, as well as how your company handles stock options specifically. Forms of ...