Option Trading Apr 2026

: Risk is strictly limited to the premium paid. However, options are time-sensitive; if the stock doesn't move as expected before expiration, the entire investment can be lost.

: You own the stock and sell a call against it. This generates immediate income (the premium) but caps your potential profit if the stock price soars. OPTION TRADING

: You receive the premium upfront, but you take on the obligation to fulfill the contract. Selling "naked" (without owning the stock or cash) carries potentially unlimited risk if the market moves sharply against you. : Risk is strictly limited to the premium paid

: The agreed-upon price at which the asset can be bought or sold. This generates immediate income (the premium) but caps

: The cost you pay (as a buyer) or receive (as a seller) for the contract.

Options trading involves buying or selling contracts that give you the right—but not the obligation—to buy or sell an asset (like a stock or ETF) at a set price within a specific timeframe.