Options are a type of contract that gives the buyer the right to buy or sell a security at a specified price at some point in the future. An option holder is essentially paying a premium for the right to buy or sell the security within a certain time frame.
Is option trading profitable? Options trading is a risky endeavor but can be profitable if done correctly. There is no guarantee that any particular trading strategy will be consistently successful, but a few methods have proven to be effective more often than not.