Market guide
Options concepts guide
This page explains options concepts for education only. It should not be read as a product availability claim.
What options are
An option gives the buyer a right linked to an underlying asset, while the seller takes on an obligation if the option is exercised. A call option is linked to the right to buy. A put option is linked to the right to sell. Options pricing can be affected by the underlying price, strike price, time to expiry, volatility, interest rates and dividends.
Key terms
Call
An option linked to the right to buy the underlying.
Put
An option linked to the right to sell the underlying.
Strike price
The agreed price used to determine exercise value.
Premium
The price paid by the buyer and received by the seller.
What to learn next
- The difference between option buyers and option sellers.
- Intrinsic value, time value and moneyness.
- How expiry and volatility can change option premiums.
- Why options can be complex and require clear risk controls.
Useful references
Related guides
General education only
This content is general education only and covers options concepts for learning purposes. It does not confirm product availability and does not consider your objectives, financial situation or needs. Availability and suitability depend on account approval and relevant terms.