Equity Options

Equity options are financial contracts that give investors the right, but not the obligation, to buy or sell a specific company's stock at a predetermined price within a set time frame. They are used for hedging risks or speculating on stock movements. A "call" option allows buying the stock at the agreed price, while a "put" option allows selling it. These instruments enable traders to manage exposure or leverage their positions without owning the underlying shares outright, offering flexibility in investment strategies.