Equity options are financial instruments that give the holder the right, but not the obligation, to buy or sell shares of a specific stock at a predetermined price and date. These options are commonly used by investors and traders to manage risk, hedge against potential losses, and speculate on future price movements in the underlying stock.

There are two types of equity options: call options and put options. A call option gives the holder the right to buy shares at a predetermined price, while a put option gives the holder the right to sell shares at a predetermined price. Both types of options have expiration dates, which limit the amount of time the holder has to exercise their right to buy or sell the underlying stock.

Equity options are financial instruments that grant the holder the right, but not the obligation, to buy or sell a specific quantity of a company's stock at a predetermined price within a specified timeframe. These options derive their value from the underlying stock, providing investors with the opportunity to speculate on price movements or hedge existing positions.

Call options give the holder the right to buy shares at a predetermined price, known as the strike price, while put options grant the right to sell at the strike price. The buyer pays a premium for the option, and the seller receives this premium in exchange for taking on the obligation if the option is exercised.

Equity options play a crucial role in portfolio management, allowing investors to engage in strategic trading, protect against downside risk, and enhance overall flexibility in financial markets. Traders often leverage options for speculative purposes, capitalizing on market volatility or implementing complex strategies to achieve specific investment objectives.