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Options basics · Video · 48 sec

What is an option?

The ticket that locks today’s price until a set date — explained in 45 seconds.

In this video

  • An option is like a ticket: it locks a price (the strike) until a date (the expiration).
  • If the stock rises past your price, the ticket gains value.
  • If it falls, you don’t have to buy: you lose only what the ticket cost.
  • Call = the right to buy (wins if price goes up). Put = the right to sell (wins if price goes down).
  • An option is a right, not an obligation — and its price tells you how big a move the market expects.