Option trading is a complex and risky investment strategy. It is important to understand the risks involved before trading options. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date. Options can be used to hedge against risk, to speculate on the future price of an asset, or to generate income. There are two types of options: calls and puts. A call option gives the buyer the right to buy the underlying asset at a specified price on or before a specified date. A put option gives the buyer the right to sell the underlying asset at a specified price on or before a specified date. The price of an option is determined by a number of factors, including the strike price, the expiration date, the volatility of the underlying asset, and the interest rates. When trading options, it is important to consider the following: Your risk tolerance: Option trading is a risky inv...