Stock options have been traded in the United States from the late 1700s, and they are based on underlying common stock issues. Options and futures on corporate securities can be evaluated using the firm’s common stock price and its volatility rate because this exercise takes in consideration only one type of uncertainty: the firm’s value. Thus, the price of all corporate securities will correlate with one another over time. Stock derivatives involve four common trading and risk management strategies, dividend spread, collar agreements, variable prepaid forward, and the fourth involves either the sale of at-the-money puts or selling at-the-money puts plus buying at the-money calls (a.k.a., an option collar). The latter is typically adopted by large corporations. Stock index futures and options were created in the early 80s, and the underlying securities are stock indices. Indices are composite groups of stocks that model and simulate a portfolio of securities. More recently exchange-traded funds, ETFs have attracted significant attention in the market. Each ETF is a composite of securities that effectively trades as a stock portfolio. On this survey the nature of such instruments, their valuation, and risk management strategies are analyzed.