Option is a contract which gives buyer the right, but not the obligation to buy or sell an underlying asset such as stock at a fixed price on or before a certain expiration date. There are two basic types of option contracts: Call and Put. A Call option will give the buyer the right to buy underlying asset. Put option gives the buyer the right to sell underlying asset.

Options are called derivatives, since the value of an option is derived from another underlying asset like stock. Option are traded in two places: public stock exchange and in agreement between two parties which is known as OTC or Over The Counter. Most options are traded in public stock exchange. The two most common options exchanges are CBOE or Chicago Board Options Exchange (the world's largest options exchange) and CBOT or Chicago Board of Trade Exchange (the world's oldest options and futures exchange).

You can make money with options in any kind of market condition. If the market is bullish, you can buy call options. But if the market is bearish you can buy put options. What if the market did not move a lot or in consolidation? You can also make money buy combining put and call options. Iron condor is the name of the strategy. With Iron condor, you can make profit if the price does not move much, but if it move much higher or much lower, we won't get any profit. You should also know that Iron condor has limited profit and loss.