Part 1 Ride The Big Moves

What Are Options?

Options are derivatives, which means their value is derived from an underlying asset such as stocks, indices, commodities, or currencies. In equity and index markets, options help traders speculate on price movements or protect their existing positions.

An option is essentially a contract that grants the buyer the right (but not the obligation) to buy or sell the underlying asset at a predetermined price (called the strike price) before a specific date (called the expiry).

There are two types:

Call Option – Gives the right to buy

Put Option – Gives the right to sell