Option trading

# **Option Trading**

**Options trading** allows traders to speculate on price movements or hedge risks using **call and put contracts**. It provides leverage and flexibility with controlled risk.

## **1️⃣ Key Option Types**
✅ **Call Option:** Right to **buy** an asset at a fixed price.
✅ **Put Option:** Right to **sell** an asset at a fixed price.

## **2️⃣ Option Trading Strategies**
✅ **Buying Calls/Puts:** Directional trades based on market movement.
✅ **Covered Call:** Selling a call against owned shares for premium income.
✅ **Iron Condor:** Profit from low volatility with limited risk.

### **Conclusion**
Options trading helps traders **maximize profits, hedge risks, and trade with leverage**, making it a powerful tool for market participants. 🚀