CNBC Explains Options

Options

  • Call_Options_Video.jpg
    By: CNBC Explains

    Want to succeed at trading options? You need to understand exactly how these contracts work. Salman Khan of the Khan Academy explains call options: contracts you purchase if you think a stock will go up in the near future.

  • LongStraddle_Video.jpg
    By: CNBC Explains

    Salman Khan of the Khan Academy explains put options, which are contracts you purchase if you think a stock will go down in the near future.

  • CallasLeverage_Video.jpg
    By: CNBC Explains

    By putting less money on the table to magnify profits, call options can have the same effect as investing with borrowed money, which is known as using leverage. CNBC explains.

  • Put_Options_Video.jpg
    By: CNBC Explains

    Salman Khan of the Khan Academy explains put options, which are contracts you purchase if you think a stock will go down in the near future.

  • PutCallArbitragePartI_Video.jpg
    By: CNBC Explains

    Put-Call parity demonstrates the relationship between shorts, puts, calls, and bonds. The proper combination of each can yield equal payouts. Salman Khan of the Khan Academy explains.

  • PutCallParity_Video.jpg
    By: CNBC Explains

    Put-Call parity demonstrates the relationship between shorts, puts, calls, and bonds. The proper combination of each can yield equal payouts. Salman Khan of the Khan Academy explains.

  • PutProtection_Video.jpg
    By: CNBC Explains

    Put options are essentially bets that a stock will go down, but they can also be used by investors to hedge their portfolio against a downward move in stock price. Salman Khan of the Khan Academy explains.

  • ActualOptionsQuotes_Video.jpg
    By: CNBC Explains

    For many sophisticated investors, trading options is a routine practice that can be hugely profitable, but retail investors can also transact options contracts on the open market.

CNBC Explains