The Generation Trader series, produced in partnership with E*Trade, will help viewers understand how Options & Futures can potentially be part of your overall investment strategy. This series will give you the tools you need to stay on top of market movements. Cheddar Anchors Brad Smith and Tim Stenovec focus this episode on the definitions of options, and how they can be used. In the most basic sense, an option is an agreement between a buyer and a seller that gives the buyer the right to buy or sell stock at a set price by a specific date. A Call Option is the right to buy a stock. Because you're deciding now what price you will buy in the future, you're making a bet the stock will go up, and higher than the price you'd agree to pay now. Conversely, a Put Option is a right to sell stock. In this case, you might think the price will go down so you agree now to sell stock. An option usually costs a fraction of the price of the underlying stock, so there is potential for outsized returns with less downsides. Anchors Brad Smith and Tim Stenovec dive into the E*Trade Options House Platform to discuss trading from a call position. Generation Traders, now it's your turn. Visit E*TRADE to get started.