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Become a better options trader

Learn about the world of options and how they might be used to implement your strategy.

Options can be powerful investing instruments to help generate income, manage risk, and trade volatility. Beginner strategies, such as buying and selling options, demonstrate how these securities provide dynamic alternatives to traditional investments. More advanced strategies offer unique and tactical ways to capitalize on trends in the market. This series of Viewpoints can help you find an options trading strategy that aligns with your market outlook, no matter your experience level.

Managing risk

Protect your profits
Learn how put options can help protect your gains.
Mini options
If you trade options, the smaller contract of a mini option might make sense.
LEAPS and bounds
An options strategy for short-term traders and longer-term investors.

Generating income

Selling options
You can potentially earn upfront income by selling options—but there are significant risks.
How to sell covered calls
This strategy can help you potentially generate income on stocks you own, but again there are risks.

Valuation tools

The power of delta
Learn how this Greek can help you assess the probability of making a profit.
Get to know the Greeks
Use these tools to help assess risk and enhance your options trading proficiency.
Option trading entails significant risk and is not appropriate for all investors. Certain complex option strategies carry additional risk. Prior to trading options, you must receive from Fidelity Investments a copy of "Characteristics and Risks of Standardized Options," by clicking on the hyperlink, and call 800-FIDELITY to be approved for option trading. Supporting documentation for any claims, if appropriate, will be furnished upon request.
There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, and collars, as compared with a single option trade.
Greeks are mathematical calculations used to determine the effect of various factors on options.
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Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, Rhode Island 02917

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Options Strategy Guide

An educational tool that can help you learn about a variety of options strategies.