What Are Options?
An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It is also a binding contract with strictly defined terms and properties.
Calls & Puts
Participants in the Options Market
The Lingo
Speculation versus Hedging
How Options Work
Exercising versus Trading Out
Intrinsic Value and Time Value
Types of Option
How to Read an Options Table
Options Trading Strategies