Options – Definitions, Terms & Concepts What is an option? A stock option is a contract which gives the buyer the right, but not the obligation, to buy or sell shares of the underlying security or index at a specific price for a specified time. Stock option contracts generally are for 100 shares of the underlying stock. There are two types of options, calls and puts. What is a call option? A call option gives the buyer the right, but not the obligation, to buy the underlying security at a […]