options strategies

Options strategies are financial tools investors use to manage risk or enhance potential returns. An option gives the holder the right, but not the obligation, to buy or sell an asset at a specific price within a set period. Strategies include buying options to speculate on price movements or selling options to generate income. Common approaches are "covered calls" (owning the asset and selling call options) to earn premium income, and "protective puts" (buying puts) as insurance against declines. These strategies help balance risk and reward based on market outlook and investment goals.