Options are financial contracts that were originally designed to hedge some type of risk. Today Options are highly risky, speculative investments done between two parties a buyer and a seller.

Trading Options

Options are financial derivatives, being derived of a underlying asset, whether a  Stock, Commodity, or other asset. There is an agreement upon the price of the underlying asset, the maturity (time it takes place), and the premium (cost of the option). In a Call Option the buyer of the option as the ‘option’ to call upon the contract to …