Option trading is a type of investing where traders buy and sell options contracts rather than the underlying asset (like stocks or crypto). Options give the buyer the right, but not the obligation, to buy (call option) or sell (put option) an asset at a predetermined price before a specific expiration date. Key Concepts of Option Trading: â… Call Options â” You profit if the asset price goes up â… Put Options â” You profit if the asset price goes down â… Leverage â” Control a large position with a smaller amount of capital â… Risk Management â” Can limit losses, but also involves potential risk if not managed properly Traders use options for speculation, hedging, or income generation through strategies like covered calls, spreads, and straddles. ð”” *Stay ahead of the m
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