Many investors are up to date on the ins and outs of trading stocks daily. However, a less common vehicle of investing on leverage is trading options.  Here are some of the basic terms of option trading that will make you look like an expert at that next mixer party or sophisticated dinner gathering.  First, what is an ‘option’?  Options basically give the owner a contract to the rights (not the obligation) to buy or sell an asset at a given price and time.  The ’strike price’ is that specific price at which the owner can either buy or sell the option at.  The next two terms, ‘call’ and ‘put’ are dependent on whether you are trying to sell (think the price will go up) or buy (think the price will go down) the certain asset.  ‘Calls’ give the owner the right to buy the asset at a certain price and ‘Puts’ give the owner the right to sell the asset at a certain price.  If the owner decides to sell/buy, it is often referred to as ‘exercising’ the option.