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Options

Derivatives that give the holder the right, but not the obligation, to buy or sell an underlying asset at a preset price on or before a specific date.

A popular type of derivatives (deriving their value from an underlying asset), options contracts give holders the right, but not the obligation, to buy or sell their underlying asset (such as equities or Bitcoin) at a predetermined price (strike price) on or before a specified date (expiration date).

There are two main types of options: call options and put options. Call options give holders the right to buy the underlying asset at the specified strike price, while put options give holders the right to sell the underlying asset at the specified strike price.

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