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 ...

An option gives traders the right, but not the obligation, to trade the underlying asset that it is linked to. Whether the underlying asset moves up or down in value, an options straddle is a trading ...

A short straddle is an advanced options strategy used when a trader is seeking to profit from an underlying stock trading in a narrow range. Since it involves having to sell both a call and a put, the ...

While directional trading involves making bets on the price movements of an underlying asset, non-directional trading is a unique approach that focuses on generating profits from volatility and time ...

Options trading might sound complex, but there are basic strategies that most investors can use to improve returns, bet on the market's movement, or hedge existing positions. Covered calls, collars, ...