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Options

In one line: A contract that gives the right, but not the duty, to buy or sell at a set price.

A call gives the right to buy. A put gives the right to sell. Both at a fixed price (the strike), until or on the end date (expiry). The buyer pays a price for this right, called the premium.

Buyers can lose the whole premium. Sellers can face much larger losses. Investor.gov explains options in detail; this is a big topic, and we only scratch the surface here.

Related

Sources & studies

  1. Investor.gov (SEC): Options
  2. Investor.gov (SEC): Call option
  3. Investor.gov (SEC): Put option

MarketsFuturesLeverage

Last checked: 2026-11-04 · Educational, not financial advice.

Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.