There are two positions in options: calls and puts. A call conveys the right, but not the obligation to buy a financial instrument at a strike price, before expiration. On the other hand, a put goes the other route. It conveys the right, but not the obligation, to sell an instrument at a strike price before expiration.
In mathematical terms, winning in an options --- is nothing but a zero sum game of chance; and like in all betting games, you only play with monies that you can afford to lose - or you stand to lose your shirt.
Photo credit: stockoptionsonline.com
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