Stock Options Trading is when an owner enters into a contract to buy or sell stocks at a fixed price within a specified time frame.

It’s important to note that stock option trading is different from stock trading. When an owner is buying or selling actual stock or ownership in a company, this is known as stock trading. However, in stock option trading, the owner is buying the option i.e. they are entering into a contract to buy or sell stocks at a fixed price within a specified time frame (see Options Trading).