Skill
Options Trading
Finance and Accounting
Options trading involves buying and selling options contracts, financial derivatives that give the holder the right, but not the obligation, to buy or sell an underlying asset (like a stock) at a specified price before or on a certain date. Traders use options for purposes like hedging risk, generating income (e.g., through covered calls), or speculating on price movements with leverage. It requires understanding concepts like strike price, expiration, and volatility, and is practiced by both retail investors and professional traders on exchanges like the Chicago Board Options Exchange (CBOE).
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