Make investments or hedge risks with options The option contract, or simply option, gives the buyer the right, but not an obligation, to buy ("call" options) or sell ("put" options) an asset on or before a specified date at a specified price ("strike price"). The option seller (writer), in turn, assumes the obligation to buy ("put" options) or sell ("call" options) the specified asset at a specified price within a specified time period. When buying an option, the customer pays a premium and a fee for the execution of the transaction, the amount of which depends on the option exchange where the option is traded and on the number of option contracts traded (for over-the-counter option transactions, the fee is normally agreed on a case by case basis).