Calls and puts
A call gives its holder the right to buy at a chosen strike price. A put gives its holder the right to sell at a chosen strike price. Their prices can change for more reasons than the underlying stock price.
Strike and expiration
The strike is the contract’s reference price. Expiration is when the contract ends. Less time can make an option more sensitive to time decay and price movement.
Learn the risks first
Options can expire worthless, have wide spreads, and react to volatility changes. Read the contract terms and understand the maximum risk before using one.
Intermediate takeaway
Options are not a shortcut to a better trade. Structure, timing, and defined risk still come first.