What Is Options?
Definition and plain-English explanation of "Options"
Options are financial contracts that give the buyer the right (but not the obligation) to buy or sell an asset at a specific price (the strike price) before a specific date (the expiration date). Call options profit when prices rise; put options profit when prices fall. Options can be used for speculation or to hedge existing positions.
Related Terms
A call option gives the buyer the right to purchase a stock at a specific strike price before the ex...
A put option gives the buyer the right to sell a stock at a specific strike price before the expirat...
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Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.