Option traders typically trade on margin, which involves borrowing money from a broker. Because of the risks involved in options trading, traders may be required to submit different information to ...

And while the payoffs on an in-the-money trade can be high, the trader could ultimately suffer a bigger loss if the underlying stock moves the wrong way. While out-of-the-money options are ...

Each option contract offers control of 100 shares for just a fraction of what it would cost to buy those shares outright, which means the percentage gains on a winning options trade can be ...