What Is Options?

Here's a quick facts about: Options trading is a financial contract where the buyer has the right, but not the obligation, to buy or sell an underlying asset (such as a stock, commodity, or currency) at a specified price (strike price) on or before a specified date (expiration date). The seller of the option is obligated to fulfill the terms of the contract if the buyer chooses to exercise their option. Options trading can be used for hedging or speculating, and can offer significant potential rewards, but also involves significant risk.