Options are derivative financial instruments based on the value of linked securities, such as shares. An options contract gives the buyer the right to buy or sell - depending on the type of contract it holds - the related asset. Unlike futures, the holder is not required to buy or sell the asset if you so decide. Call options allow the holder to purchase the asset at a specified price within specific deadline. Put options allow the holder to sell the asset at a specified price within specific deadline. Each option contract will have a specific expiration date on which the holder must exercise his option. The declared price of an option is known as the strike price. The options are usually bought and sold through online or retail brokers Call and put options form the basis for a wide range of option strategies designed for hedge, revenue or speculation. While there are many opportunities to profit from the options, investors should weigh the risks carefully.