Options Trading: things you should know about

In the world of finance, an options trader is a person who executes option contracts in exchange for a cash fee. In this case, it is the options trader that exercises the rights to purchase or sell a particular underlying instrument or commodity at a certain strike price, either before or on a given date as determined by the form of the contract. In addition, this person also has the responsibility to settle the contract. As previously stated, there are two kinds of options; fundamental and derivative. Derivative Options, meanwhile, are those that represent future financial instruments.
In Options trading, when an investor decides to purchase an underlying security, such as stock, then this person can either buy or sell the option within a set period of time. At a call strike, an investor can purchase an option for the underlying securities at a pre-determined price. If, however, the …