Strike Selection for Protective Puts

What is a Put Option?

A put option is one of the two types of options, with the other being call options. When an investor buys a put option, they have the right to sell the security (such as a stock) that's underlying the option at its strike price, all the way until the option's expiration.

Options FAQ: How might corporate actions impact options?

Did you know that corporate actions like stock splits, mergers, acquisitions, and special dividends, among others, can change the terms of your options contract?

Options FAQ: How do I know if my option was adjusted?

If you’re trading options, you may wonder how corporate actions impact your position.

Options FAQ: What are LEAPS® and how do they differ from standard options?

LEAPS® (Long-Term Equity AnticiPation Securities SM) are options with expiration dates extending beyond one year. While they share the same specifications as shorter-term options, their extended lifespan often comes with higher premiums.