Options contracts give the bearer the right, but not the obligation, to buy or sell a specified amount of an underlying asset at a predetermined price at or before the contract expires. Options, like the majority of other asset classes, can be purchased using brokerage investment accounts. Options contracts are valid for a set period of time, which can range from a day to several years.
Options Trading
The learning curve for understanding the options market and developing successful trading strategies
What is Options Trading?
Different types of options trading:
Call Option
A call option grants you the right to purchase an underlying security at a specified price within a specified time period. The price you pay is referred to as the strike price. The expiration date refers to the end date for exercising a call option.
Put Option
The inverse of a call option is a put option. A put option, rather than giving you the right to buy an underlying security, gives you the right to sell it at a predetermined strike price.
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