An “option” is a contract that permits (but does not require) trading between two parties to purchase or sell or trade things like shares, ETFs, or index funds at a predetermined price and within a given timeframe. The name of this market is the options market. Options come in two varieties: call and put. When an investor plans to buy financial instruments in the future, they speak of the call option. When the trader sells the share covered by the option contract, the put option expires.