Options contracts are financial instruments that grant the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price (the strike price selected while buying) within a specified period (until the expiration date). There are two types of options: call option (bought when you are bullish) and put option (bought when you are bearish).

Options are widely used for various purposes, including speculation, hedging, and risk management. Traders may use options to profit from price movements, protect against potential losses, or generate income. The flexibility and strategic possibilities offered by options make them a versatile tool in the financial markets.