What are options?

Option is a contract where the buyer has the right but not the obligation to buy or sell the underlying asset for a fixed price before a certain date. Because of advantage that the options offer, there is a huge demand for it. So trading options can be very profitable. More then with stocks.

Basically it means that you have the right to purchase but you are not obligated to buy. The seller can only sell it to you and not to someone else. In return the seller gets a fee for keeping this item for sale only to you. By understanding this advantage well, you can spot a lot of opportunities in trading options.