An "option" is a financial contract that gives an investor the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time frame. Options are commonly used in trading stocks, commodities, and other financial instruments, allowing investors to hedge risks or speculate on price movements. There are two main types of options: call options and put options. A call option allows the holder to buy the underlying asset, while a put option allows the holder to sell it. Options can be complex and involve various strategies, but they provide flexibility in managing investments.