(function(){
var COOKIE_NAME = 'menthorq_utm_params';
var LS_KEY = 'menthorq_utm_params';
var UTM_KEYS = ['utm_source','utm_medium','utm_campaign','utm_term','utm_content','utm_id'];
var CLICK_ID_KEYS = ['gclid','fbclid','msclkid','ttclid'];
var COOKIE_DAYS = 30;// Read UTM parameters and click IDs from current URL
var params = new URLSearchParams(window.location.search);
var trackingData = {};
var hasData = false;
var allKeys = UTM_KEYS.concat(CLICK_ID_KEYS);
for (var i = 0; i < allKeys.length; i++) {
var val = params.get(allKeys[i]);
if (val) {
trackingData[allKeys[i]] = val;
hasData = true;
}
}if (hasData) {
// Fresh tracking data found in URL — store it (overwrites previous attribution)
trackingData.captured_at = new Date().toISOString();
setCookie(COOKIE_NAME, JSON.stringify(trackingData), COOKIE_DAYS);
try { localStorage.setItem(LS_KEY, JSON.stringify(trackingData)); } catch(e) {}
return;
}// No tracking params in URL — check if cookie exists
if (getCookie(COOKIE_NAME)) return;// Cookie is missing (expired or first visit) — try to restore from localStorage
try {
var stored = localStorage.getItem(LS_KEY);
if (stored) {
var parsed = JSON.parse(stored);
if (parsed && (parsed.utm_source || parsed.gclid || parsed.fbclid || parsed.msclkid || parsed.ttclid)) {
setCookie(COOKIE_NAME, stored, COOKIE_DAYS);
}
}
} catch(e) {}// Helper: set cookie
function setCookie(name, value, days) {
var expires = new Date(Date.now() + days * 864e5).toUTCString();
var cookie = name + '=' + encodeURIComponent(value) + ';expires=' + expires + ';path=/;SameSite=Lax';
if (location.protocol === 'https:') cookie += ';Secure';
document.cookie = cookie;
}// Helper: get cookie value (returns empty string if not found)
function getCookie(name) {
var match = document.cookie.match(new RegExp('(?:^|; )' + name + '=([^;]*)'));
return match ? decodeURIComponent(match[1]) : '';
}
})();
var breeze_prefetch = {"local_url":"https://menthorq.com","ignore_remote_prefetch":"1","ignore_list":["/wp-json/openid-connect/userinfo","wp-admin","wp-login.php"]};
//# sourceURL=breeze-prefetch-js-extra
An option is a contract between two parties. It gives the buyer the right, but not the obligation, to buy or sell an underlying asset (like a stock) at a specific price before a certain date. Meanwhile, the seller (also called the writer) has the obligation to fulfill the other side of that contract if the buyer chooses to exercise the option.
Unlike stocks, which represent ownership in a company, options are derivative instruments. Their value is based on the price of something else — usually a stock, ETF, index, or commodity.
There are two main types of options: Calls and Puts.
Call Options
A call option gives the buyer the right to purchase the underlying asset at the agreed-upon price (called the strike price) before the option expires. The seller of the call has the obligation to sell the asset at that price if the buyer chooses to exercise the option.
People buy call options when they believe the price of the underlying asset will go up. If the asset’s price stays below the strike price, the call option will likely expire worthless, and the buyer loses only the premium paid.
Put Options
A put option gives the buyer the right to sell the underlying asset at the strike price before the expiration date. The seller of the put is obligated to buy the asset if the buyer exercises the option.
Investors buy put options when they believe the asset’s price will drop. If the price stays above the strike price, the put option expires worthless.
Rights vs. Obligations
The buyer of an option always has the right to choose whether to exercise the contract or let it expire. They never have to buy or sell the underlying asset if they don’t want to. This limited risk is one of the biggest appeals for option buyers — the most they can lose is the premium they paid.
The seller, on the other hand, takes on an obligation. If the buyer exercises the option, the seller must fulfill the contract, even if it means selling or buying at a loss. This is why option sellers receive a premium upfront when they write an option.
A Real-World Example
Let’s say you are interested in Company XYZ, which is currently trading at $50 per share. You think the stock price will rise over the next three months. You could buy 100 shares for $5,000, or you could buy a call option.
Suppose you buy one XYZ call option with a strike price of $55 that expires in three months. The premium for the option is $2 per share, or $200 for one contract (each option contract typically represents 100 shares).
If XYZ rises to $60 before expiration, you can exercise the option. You buy 100 shares at $55, sell them immediately at $60, and make $500. Subtract the $200 you paid for the premium, and your profit is $300.
On the other hand, if XYZ stays below $55, you would not exercise the option because it makes no sense to pay $55 per share when you could buy the stock for less in the open market. In this case, your total loss is the $200 premium.
Why Use Options?
Investors use options for many reasons:
Speculation: Traders can profit from price moves without needing to commit large amounts of capital. Options give traders leverage, which can increase gains but also risks.
Hedging: Investors often use options to protect their portfolios. For example, a stockholder might buy a put option to limit losses if the stock price drops.
Income: Some investors write (sell) options to earn premium income. Covered calls are a common strategy, where an investor who owns a stock sells a call option against it to collect premium while still holding the stock.
Key Terms to Know
When trading options, you’ll come across a few key terms:
Strike Price: The price at which the option holder can buy (call) or sell (put) the underlying asset.
Premium: The price paid by the buyer to the seller for the option.
Expiration Date: The last day the option can be exercised.
In the Money (ITM): An option with intrinsic value. For a call, this means the stock price is above the strike price; for a put, it means the stock price is below the strike price.
Out of the Money (OTM): An option with no intrinsic value.
Conclusion
Options are powerful tools for traders and investors who understand how they work. Whether you want to speculate on a price move, hedge a position, or generate income, knowing the difference between calls and puts and understanding the rights and obligations of each side of the trade is essential.
As with any strategy, it is important to manage risk carefully and build a solid foundation of knowledge before you jump in. When used wisely, options can add flexibility, protection, and opportunity to your investing toolkit.
Join us today
Access daily Market Research and our interactive Dashboard. Make better trading decisions.
