In the Spotlight

Insights Out: Options With Options—The Basics

April 14 2025

Explore the world of options with T. Rowe Price's new video series, Insights Out. Join Stefan Hubrich and Gerard Brunick as they demystify options securities and their role in portfolios. Learn about puts, calls, and the difference between American and European options, with engaging real-world examples.

Key Insights

  • Discover the basics of options contracts that provide rights without obligations to buy or sell securities.
  • Learn the difference between American and European options, impacting when you can exercise your financial decisions.
  • Explore how options can provide some flexibility, mitigating some volatility in return for a cost.

Derivatives, such as options, may be riskier or more volatile than other types of investments because they are generally more sensitive to changes in market or economic conditions; risks include currency risk, leverage risk, liquidity risk, index risk, pricing risk, and counterparty risk.

Important Information 

This video is for educational purposes only.

This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any particular investment action.

The views contained herein are as of April 2025 and are subject to change without notice; these views may differ from those of other T. Rowe Price associates.

This information is not intended to reflect a current or past recommendation concerning investments, investment strategies, or account types, advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. The opinions and commentary provided do not take into account the investment objectives or financial situation of any particular investor or class of investor. Please consider your own circumstances before making an investment decision.

Information contained herein is based upon sources we consider to be reliable; we do not, however, guarantee its accuracy. Actual future outcomes may differ materially from any estimates or forward-looking statements provided.

Past performance is not a guarantee or a reliable indicator of future results. All investments are subject to market risk, including the possible loss of principal. All charts and tables are shown for illustrative purposes only.

 

T. Rowe Price Investment Services, Inc., distributor, and T. Rowe Price Associates, Inc., investment adviser.

© 2025 T. Rowe Price. All Rights Reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE, the Bighorn Sheep design, and related indicators (https://www.troweprice.com/en/intellectual-property) are trademarks of T. Rowe Price Group, Inc. All other trademarks are the property of their respective owners.

ID0007894 (04/2025)
202506-4621305

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