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Alright, let's start with the basics: what exactly *are* options? Think of them as contracts that give you the *right*, but not the *obligation*, to buy or sell an underlying asset at a specific price (called the strike price) on or before a specific date (the expiration date). The underlying asset can be anything from stocks and indices to commodities jeff immelt salary jeff immelt net worth and currencies. Let's break that down, shall we? When we're talking about option trading, we are talking about derivatives, a financial instrument whose value is derived from the value of an underlying asset. This is super important to understand! Option trading offers leverage, which means you can control a large amount of an asset with a relatively small amount of capital.
