Part 1 Support and Resistance

What Are Options?

An option is a financial contract between two parties: the buyer (also called the holder) and the seller (also called the writer). The buyer pays a premium to the seller in exchange for the right to buy or sell the underlying asset at a specified strike price before or on a specified expiration date.

There are two main types of options:

Call Option – gives the buyer the right to buy the underlying asset at the strike price.
Put Option – gives the buyer the right to sell the underlying asset at the strike price.