Options trading involves the buying and selling of options contracts, which give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date. This strategy can be used to speculate on the future price of an asset, hedge against risk, or generate income.
Options trading has become increasingly popular in recent years due to its potential for high returns and its ability to mitigate risk. However, it is important to understand the risks involved before trading options.