# Options Trading Strategy(1/n)

**Published by:** [0xiaorun](https://paragraph.com/@xiaorun-2/)
**Published on:** 2024-07-16
**URL:** https://paragraph.com/@xiaorun-2/options-trading-strategy-1-n

## Content

An option is a contract that represents the right to buy or sell an underlying asset at an agreed-upon price for a specific period of time.ConceptsCall options: Calls give the purchaser of the option the right to buy asset from the writer of the option in the future.Put options: Puts give the purchaser the right to sell asset to the creator of the options contract at a set price in the future.Premium: All options contracts are sold for a fee called a premium.Strike price: The contract defines a specific price for the trade, called the strike price.Expiration date: This deadline, or expiration date, is the final moment the options contract may be executed.Common DeFi OptionsCovered Call SellerWhen Settle Price ≦ Strike Price, you gainWhen Settle Price > Strike Price, you may losePut SellerWhen Settle Price ≧ Strike Price, you gainWhen Settle Price < Strike Price, you may loseStructured products@SOFAorgDAO@ThetanutsFi@TypusFinance

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