options

Options are special kinds of investments. They are like a contract that gives you the right, but not the obligation, to buy or sell an asset like a stock (a part ownership of a company) at a certain price. You can buy an option or you can sell an option. When you buy an option, you get the right to buy or sell an asset at the price in the option when the option expires. When you sell an option, you give up the right to buy or sell the asset at the goven price and get paid from the other person who buys the option from you.