If you understand options well, you can skip this part

Options are derivative contracts that give buyers the right to buy or sell an asset, typically 100 units/shares of the underlying asset, at a given price on a specified future date.

However, it obligates the seller of the option contract to deliver said product at the agreed price and date should the contract owner request so.

There are two distinct options contract types, namely a call option and a put option, we’ll see an example for each.