What is an option contract?

An option contract is an agreement that gives the option holder the right to buy or sell the underlying asset at a certain date (known as an expiration date or maturity date) at a prespecified price (known as strike price or exercise price). You are free to use this image on your website, templates, etc, Please provide us with an attribution link

What are call options and put options contracts?

A call option gives the contract owner/holder (the buyer of the call option) the right to buy the underlying stock at a specified strike price by the expiration date . Calls are typically purchased when you expect that the price of the underlying stock may go up.

What are the different types of options contracts?

There are two types of option contracts: put and call options. Both types help investors earn a profit based on how they think the underlying asset will fare in the market within a predetermined amount of time. Call and put options are discussed in greater detail below. How Does an Options Contract Work?