Source: https://mochatrade.com/learn/glossary/options-contract

# Options contract
URL: https://mochatrade.com/learn/glossary/options-contract
Last modified: 2026-10-17

An options contract gives the buyer the right, not the obligation, to buy (call) or sell (put) at a strike before expiry, for a premium. The buyer can lose only the premium; the seller can lose far more. [The Module 0 quiz](https://mochatrade.com/learn/start-here/quiz) tests the two common mistakes, US options trade on [Cboe, which also runs the VIX](https://mochatrade.com/learn/us-market-structure/us-stock-market-explained), and the chain is [a read of what the market expects](https://mochatrade.com/learn/start-here/how-to-read-us-market-news).

## Related terms

- Cboe: https://mochatrade.com/learn/glossary/cboe
- Call option: https://mochatrade.com/learn/glossary/call-option
- Futures contract: https://mochatrade.com/learn/glossary/futures-contract
- Option open interest: https://mochatrade.com/learn/glossary/option-open-interest
- Put option: https://mochatrade.com/learn/glossary/put-option
- Volatility / VIX: https://mochatrade.com/learn/glossary/volatility-vix

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.