Options are contracts that give the holder the right, but not the obligation, to buy or sell an asset at an agreed price on or before a specified date. Buyers of options pay a fee, a premium to purchase a contract. They are a financial derivative that represents a contract sold by one party (an option writer) to another party (an option holder). The contract offers the buyer/holder the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time in the future or on a specific date (exercise date). Call options give the option to buy at certain price, so the buyer would wish the stock to go up in order to make a profit. Put options give the option to sell at a certain price, so the buyer would wish the stock to go down.