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Option strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options' variables.

Call options give the buyer a right to buy that particular stock at that option's strike price.

Put options give the buyer the right to sell a particular stock at the strike price.

This is often done to gain exposure to a specific type of opportunity or risk while eliminating other risks as part of a trading strategy.

A very straightforward strategy might simply be the buying or selling of a single option, however option strategies often refer to a combination of simultaneous buying and or selling of options.

The Chicago Board Options Exchange, located at 400 South LaSalle Street in Chicago, is the largest U.S. options exchange with annual trading volume that hovered around 1.27 billion contracts at the end of 2014.

CBOE offers options on over 2,200 companies, 22 stock indices, and 140 exchange-traded funds (ETFs).

In finance, an option is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specific strike price on a specified date, depending on the form of the option.

The strike price may be set by reference to the spot price (market price) of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount or at a premium.

The seller has the corresponding obligation to fulfill the transaction – to sell or buy – if the buyer (owner) "exercises" the option.

An option that conveys to the owner the right to buy at a specific price is referred to as a call; an option that conveys the right of the owner to sell at a specific price is referred to as a put.

Both are commonly used in and by the old traded, but the call option is more frequently discussed.

The stock (also capital stock) of a corporation is constituted of the equity stock of its owners.

A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares.

In liquidation, the stock represents the residual assets of the company that would be due to stockholders after discharge of all senior claims such as secured and unsecured debt.

Stockholders' equity cannot be withdrawn from the company in a way that is intended to be detrimental to the company's creditors.

A market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange.

While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labor) in exchange for money from buyers.

It can be said that a market is the process by which the prices of goods and services are established.

Markets facilitate trade and enable the distribution and allocation of resources in a society.

Markets allow any trade-able item to be evaluated and priced.

A market emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights (cf.

ownership) of services and goods.

Markets generally supplant gift economies and are often held in place through rules and customs, such as a booth fee, competitive pricing, source of goods for sale (local produce or stock registration), and the threat of military or police force if these rules are broken.