Exchange-traded options

Exchange-traded options are standardized financial contracts bought and sold on a public exchange, granting the holder the right—but not the obligation—to buy or sell an underlying asset (like stocks) at a specified price within a certain timeframe. They serve as tools for managing investment risk or speculating on price movements. Because they are traded on exchanges, options are regulated, transparent, and easily accessible, providing investors with flexible strategies while limiting potential losses to the premium paid for the option.