🎯Advanced
Options Basics
The right — but not obligation — to buy or sell
An option gives you the right (not obligation) to buy (call) or sell (put) a stock at a specific price before a specific date. You pay a premium for this right. Options can hedge risk, generate income, or amplify gains. They're complex — 'theta decay' means options lose value every day just from time passing, even if the stock doesn't move.
Quick check
What does a 'call option' give you the right to do?