What are Options

A brief introduction to the nature of the options instrument will help you get a idea about how to go about trading them.
Options are derived instruments, that is derivatives. This is so because the option value and character is connected to an underlying asset. This could be a stock, an index, a futures or any type of security. But we are concerned only with stock and index options.
When an option gives us the right to buy the underlying asset at a predetermined price and within some predetermined time frame in the future, it is know as a CALL Option.
When an option gives us the right to sell the underlying asset at a predetermined price and within some predetermined time frame in the future, it is know as a PUT Option.
What we have to keep in mind is that the owner/buyer of an option has a right and no obligation.
and on the other side the seller/writer of an option has the obligation to fulfill if the option is exercised by the buyer.