What is Options Contract?
Options Contract (also called option) — A contract giving the right, not the obligation, to buy (call) or sell (put) an underlying at a set strike price before expiry.
In simple terms
A call option gains value when the underlying rises above the strike.
Why Options Contract matters when you invest
Understanding options contract helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Options Contract — frequently asked questions
What is Options Contract?
A contract giving the right, not the obligation, to buy (call) or sell (put) an underlying at a set strike price before expiry.
What does Options Contract mean in the stock market?
A contract giving the right, not the obligation, to buy (call) or sell (put) an underlying at a set strike price before expiry. A call option gains value when the underlying rises above the strike.
Can you give an example of Options Contract?
A call option gains value when the underlying rises above the strike.
Put it into practice — open a free account.
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