Simply put, options are contracts that allow the buyer the right to buy or sell an asset prior to a certain date or at an identified price. There are two types of options, called calls and puts. A call gives the buyer the right to buy the asset. By contrast, a put allows the holder to sell the asset. In both cases, buyers have the option to sell the asset on or before its expiration date.
Options are very versatile. They allow investors to adapt their position based on situations as they evolve. They are also speculative in nature, which means they do carry risk. But by working with professionals who understand options trading, investors have the opportunity to reap positive financial gains.
Futures and options trading involves risk of loss. Past performance is not indicative of future results. Only risk capital should be used.