Stock Investing — Advanced: Options Basics for Investors

Calls and puts give the right to buy/sell at a strike price. Investors use them to hedge (protective puts) or generate income (covered calls). Options have expiry and time decay, so they require understanding before use — sold options in particular can carry large or undefined risk.

Key takeaways

• Options can hedge risk or generate income.
• Time decay and expiry make them different from stock.
• Selling options can carry outsized risk — learn first.

Educational disclaimer: This material is provided by Nieto Engineering Inc. for internal education only. It is not investment, financial, legal, or tax advice and is not a recommendation to buy, sell, or hold any asset. Cryptocurrency, equities, and prediction markets carry substantial risk, including total loss of capital. Past performance does not indicate future results. Always do your own research and consult a licensed professional before investing.