Sachin Khatri - Technical Analyst

Option is a right not an obligation to buy or sell a stock (Share) at a specified price on or before a specified date.
Types of Options Contract:

Call Contract: Acall contract gives the buyer right but not the obligation to buy the stock ata specific price for a specified time and Vice versa.

Put contract: A put contract gives the buyer right but not the obligation to sell the stock at a specific price for a specified time and Vice Versa.

Difference between Futures & Options

A Future contract binds the buyer to purchase and seller to sell a lot stock orcommodity at future expiry date at the price fixed.

Option is aright not an obligation to buy or sell a stock at a specified price on or before a specified date.