Options are financial derivatives that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price, on or before a specific date. Options are commonly used for stocks, but they can also be used for other assets like commodities, indices, and currencies. They provide flexibility for both hedging risk and speculating on price movements.
How Options Work
There are two main types of options:

Call Options: These give the holder the right to buy the underlying asset at a specific price (the strike price) before or on the option's expiration date. Traders buy call options when they believe the price of t...