Part 1 Master Candle Stick Pattern

Option trading is a popular part of the financial market that allows investors to buy or sell the right—but not the obligation—to trade a stock or asset at a specific price within a certain time period. It’s a flexible and powerful tool used by traders to make profits, hedge risks, or plan future investments.

What is an Option?

An option is a contract between two parties — the buyer and the seller. It gives the buyer the right to buy or sell an asset (like a stock) at a fixed price, known as the strike price, before a set date called the expiry date. There are two main types of options:

Call Option – Gives the holder the right to buy an asset at the strike price.

Put Option – Gives the holder the right to sell an asset at the strike price.