Options are financial instruments that give investors the right, but not the obligation, to buy or sell an underlying asset at a predetermined price before a specified expiration date. They are commonly used in trading to hedge risks or speculate on price movements of assets like stocks or commodities. There are two main types of options: call options, which allow the purchase of an asset, and put options, which allow the sale of an asset. Options can be complex and require a good understanding of market dynamics, making them suitable for experienced traders looking to enhance their investment strategies.