Options

Options are financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset—like stocks—at a predetermined price within a specific time. A "call" option allows purchasing, while a "put" option allows selling. They are used for speculation or hedging, helping manage risk or profit from price movements. The buyer pays a fee called a premium for this right. Options are complex and involve risk, but they can be useful tools for investors to tailor their strategies and manage exposure to market fluctuations.