Speculators:The speculators are not genuine investors. They buy securities with the hope to sell them in the future at a profit. They are not interested in holding securities for a longer period. Hence, their very object of buying the securities is to sell them and not to retain them. They are interested only in price differentials. Options: Options are contracts that give the bearer the right, but not the obligation, to either buy or sell an amount of some underlying asset at a pre-determined price at or before the contract expires. Options belong to the larger group of securities known as derivatives. A derivative's price is dependent on or derived from the price of something else. Options are derivatives of financial securities”their value depends on the price of some other asset. Examples of derivatives include calls, puts, futures, forwards, swaps, and mortgage-backed securities, among others. Call and Put Options:Options are a type of derivative security. An option is a derivative because its price is intrinsically linked to the price of something else. If you buy an options contract, it grants you the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. A call option gives the holder the right to buy a stock and a put option gives the holder the right to sell a stock. Think of a call option as a down-payment for a future purchase. Therefore, in stock exchange operations, when the speculator buys the right to sell and ascertain the number of shares on an agreed amount at a specified time, it is known as a Put Option.