This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. You profit iption a call when the underlying asset increases in price. These are tax management, income generation and speculation. A call option gives its buyer the option to buy an agreed quantity of a commodity or financial instrument, called the underlying asset, from the seller of the option by a certain date (the expiry), for a certain price (the strike price).
A optiion option gives its buyer the right to sell the underlying asset at an agreed-upon strike price before the expiry date.The party that sells the option is called the writer of the option. The option holder pays the option writer a fee — called the option price or premium. It is by no means perfect and reflects the biases and prioritiesof the writer.
It should serve as food for thought.