👉 An option is a legal right to buy or sell a specific asset at a predetermined price, usually in the future. Options are often used in contracts for futures trading and can be bought by individual investors or by institutional investors who want to speculate on stock prices. In more general terms, an option represents a right to buy or sell a particular security at a specific price at a specified time in the future. It is typically exercised when the underlying asset reaches a predetermined level of value, such as $1
