DataBase Option's Trading #Optionchain #Tradingview

Topic - DataBase Option's Trading

How does option trading work?
Options trading means buying or selling an asset at a pre-negotiated price by a certain future date. You can get started trading options by opening an account, choosing to buy or sell puts or calls, and choosing an appropriate strike price and timeframe.

What Are Options?
Options are financial contracts that give the holder the right to buy or sell a financial instrument at a specific price for a certain period of time. Options are available for numerous financial products, such as stocks, funds, commodities, and indexes.

Options trading may seem overwhelming at first, but it's easy to understand if you know a few key points. Investor portfolios are usually constructed with several asset classes. These may be stocks, bonds, ETFs, and even mutual funds. Options are another asset class, and when used correctly, they offer many advantages that trading stocks and ETFs alone cannot.

KEY TAKEAWAYS
An option is a contract giving the buyer the right—but not the obligation—to buy (in the case of a call) or sell (in the case of a put) the underlying asset at a specific price on or before a certain date.
People use options for income, to speculate, and to hedge risk.
Options are known as derivatives because they derive their value from an underlying asset.
A stock option contract typically represents 100 shares of the underlying stock, but options may be written on any sort of underlying asset from bonds to currencies to commodities.