Part 1 Technical Analysis VS. Institutional Option Trading

What Are Options?

Options are contracts that give you the right but not the obligation to buy or sell an asset at a fixed price before a certain date.

They are derivative instruments — their value comes from the underlying asset (index, stock, commodity, currency).

Options are mostly used for hedging, speculation, and income generation.

Two Types of Options

Call Option (CE): Right to buy at a chosen price.

Put Option (PE): Right to sell at a chosen price.