options options are Financial derivatives derivatives meaning they derive their value from something else like an underlying stock options are the Japanese Blowfish of investing a delicacy if you know what you're doing and deadly if you don't like all tools they can be used conservatively to preserve value or hedge a portfolio against losses or on the flip side to speculate and potentially send you to the poor house keep in mind that the big players and options are some of the smartest people in the business with extremely powerful pricing models and simulations backing them up please don't
try to beat them at their own game however here's how a beginner could use options intelligently in the current market environment now there are two types of options available puts and calls if you were to buy a call you're making a bet that the price of something will increase kind of looks like a hockey stick if you were buying a put you're making a bet that the price of something will decrease for the right to an option you got to pay a price it's called a premium and like all markets if you're buying something someone
else has to be willing to sell it
