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[Music] before we get into option trading strategies and all the technicals lets talk about the basic definition of options and why they even exist in the first place so what is an option an option is a contract that you can purchase that gives you the right to buy or sell stock at an agreed price on or before a particular date now you can also sell an option contract where you would be selling this right to someone and collecting a premium for it okay im sure that sounded very confusing especially if this is new to you but just bear with me as we get through a few more definitions once we get through these definitions well be able to show you some examples and it will all start to make sense but go ahead and take notes and write down these definitions so you can refer back to them during the rest of this course if you need to okay there are two types of options calls and puts a call option gives the option holder the right but not the obligation to buy shares of stock at an agreed-