Stock options are a type of financial instrument that give the buyer the right, but not the obligation, to buy or sell a stock at a specified price on or before a certain date. They are often used as a form of compensation for employees or as a way to speculate on the future price of a stock.
There are two main types of stock options: calls and puts. A call option gives the buyer the right to buy a stock at a specified price, while a put option gives the buyer the right to sell a stock at a specified price. The strike price is the price at which the buyer can buy or sell the stock, and the expiration date is the date on which the option expires.
