Options belong to a group called derivatives. Because as its name implies, it derives its value from other assets such as stocks, bonds, commodities, etc. It is most commonly used either for simple speculation or generating income within the retail trading community because of its characteristics. Some may also use options to hedge their portfolios or bet on market volatility. And at a more advanced level, basic options can also be used to construct more complex structures with different payoffs.
If you are new or familiar with options, then this introductory video will cover some basic questions and help you understand what options are and how it works.
What are Options?
How do Options work?
Why are Options used for?
What are the risks in options trading?
How do you trade options?
I hope what is shared helps and best wishes for your learning and trading!
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