Options trading is the trading of one or more call or put options on a specified security.

Options are contracts that give the buyer the right, but not the obligation, to buy (call option) or sell (put option) a security at an agreed-upon price.

It's also possible to buy time and enter an agreement to sell stock at a certain time in the future, although many people choose to trade options instead because of their ability to be assigned quickly with limited expense via online brokerage accounts.

Options traders try not to speculate on short-term changes in price, but instead seek out situations where securities are in low liquidity and/or high volatility-the advent of fear is what drives up prices during these circumstances.