Options trading involves the buying and selling of options contracts, which convey the right, but not the obligation, to buy (in the case of a call option) or sell (in the case of a put option) an underlying asset at a specified price (the strike price) on or before a certain date (the expiration date).
Options trading can be a complex but potentially rewarding strategy for investors seeking to enhance their returns or hedge against risk. By understanding the mechanics of how to buy and sell options, traders can position themselves to capitalize on market fluctuations and achieve their financial goals.