Part 1 Supprot and Resistance

What Are Options?

Options are derivative contracts that give the trader a right, but not an obligation, to buy or sell an underlying asset at a pre-defined price (called the strike price) before or on a specific date (called the expiry).

There are two main types of options:

Call Option – gives the right to buy the underlying asset.

Put Option – gives the right to sell the underlying asset.

In options, the person who buys the contract is called the option buyer, and the one who sells (writes) the contract is the option seller or writer.