#firstdealofthenewyearFateema Option trading is a type of financial trading that involves buying and selling option contracts.an options contract gives the holder the right,but not the obligation,to buy or sell an underlying asset at a specified price on or before certain date. Types of option trading 1.Call option:Gives the holder the right to buy an underlying asset at the strike price. 2.Put option:Gives the holder the right to sell an underlying assets at the strike price 3.American option:can be exercised at any time before expiration. 4.European option:can only be exercised on the expiration date 5.Binary option:pays out a fixed amount if the underlying asset is above or below the strike price at expiration.