Options Market

The options market is a financial market where investors can speculate on the future direction of the overall stock market or individual securities, such as stocks or bonds. 

Options are versatile financial products that involve a buyer and seller, where the buyer pays a premium for the rights granted by the contract. Call options allow the holder to buy the asset at a stated price within a specific timeframe. Put options, on the other hand, allow the holder to sell the asset at a stated price within a specific timeframe. Each call option has a bullish buyer and a bearish seller, while put options have a bearish buyer and a bullish seller. Traders and investors buy and sell options for several reasons. Options speculation allows a trader to hold a leveraged position in an asset at a lower cost than buying shares of the asset. Investors use options to hedge or reduce the risk exposure of their portfolios. In some cases, the option holder can generate income when they buy call options or become an options writer.