What are Options?

Options are classified as derivative products because their value is derived
from the price of a different instrument called the underlying.

There are two types of options: calls and puts.

Calls give their owner the right to buy 100 shares of the underlying instrument, in this case a stock, at a predefined price called the strike price on or before the expiration date.

Puts give their owner the right to sell 100 shares of the underlying instrument, in this case a stock, at a predefined price called the strike price on or before the expiration date.

Видео What are Options? канала Options In Plain English