What is an Option?
Options are contracts that give the right, but not the obligation, to purchase or sell financial products. These types of options are also called exchange listed options or exchange traded options ?ETOs? or ?listed options.? Most ETO contracts include a set price for the product, which is commonly referred to as the strike price.
Exchange-traded option contracts also typically specify the underlying asset, quantity and expiration date.
While the right to buy or sell the product can generally be exercised on or before the expiration date, the option becomes void after the expiration date and they can either be call options or put options.?
Check this out to learn more about options:?Finding Option Opportunities – Part 1