Options trading is a type of financial trading that involves the buying and selling of options contracts. An option is a derivative contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific timeframe.
There are two types of options
Call Options: A call option gives the holder the right to buy the underlying asset at a specified price, known as the strike price, before or on the expiration date of the option.
Put Options: A put option gives the holder the right to sell the underlying asset at a specified price, known as the strike price, before or on the expiration date of the option.
