An options strategy involves using financial contracts called options to manage risk or enhance returns in investing. Options give investors the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time frame. Common strategies include buying calls or puts, writing covered calls, and using spreads to limit potential losses. Investors often choose options strategies based on their market outlook, risk tolerance, and investment goals. For example, a bullish investor might use a call option to profit from rising prices, while a bearish investor might use a put option to benefit from falling prices.