options market

The options market is a financial space where investors buy and sell contracts called options, which give them the right—but not the obligation—to buy or sell an asset, like stocks, at a predetermined price within a certain time frame. These contracts are used for speculation or hedging against price fluctuations. Buying an option costs a premium, and if market movements favor the contract, investors can profit or limit losses. Options are versatile tools that add flexibility to investment strategies, but they also carry risks and require understanding of market dynamics and timing.