What Is an Options Contract and What Are Its Two Primary Types?

An options contract is a financial derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price (strike price) on or before a specific date (expiration). The two primary types are a Call option, which grants the right to buy, and a Put option, which grants the right to sell.

The buyer pays a premium for this right.

Define a “Call Option” and a “Put Option” in the Context of Cryptocurrency Trading
What Is a ‘Put Option’ and How Does It Differ from a Call Option?
What Are the Two Main Types of Options Contracts?
How Does a ‘Hash Collision’ Relate to Blockchain Security?
What Is the Difference between a “Call Option” and a “Put Option”?
What Is the Key Difference between a ‘Call’ and a ‘Put’ Option in the Context of American-Style Exercise?
What Is the Fundamental Difference between a Call Option and a Put Option in Crypto Trading?
What Is the ‘Intrinsic Value’ of an Option?