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an option is a contract between a buyer and a seller the contract has terms that contains an agreed upon product like a stock and agreed upon price and time frame the option is issued as a call which means it contains the right to buy or as a put which means it contains the right to sell the stock the buyer can execute upon the terms of that contract and the seller has to fulfill those terms the buyer is called long the contract and they want that contract to go up in value as much as possible a seller is called short the contract and they dont want that contract to have any value at all and be worthless one contract generally represents 100 shares and is bought and sold on the exchange for a premium which is the options price which Ill explain in the next part
