Call option: When you buy a call option, you get rights instead of obligations, that is, you buy an underlying asset at a specific price (exercise price) at some future time. If the price of the underlying asset rises above the exercise price before the expiration date, you can choose to exercise and purchase the underlying asset at the exercise price and make a profit. In other words, call options give you the right to profit from price increases.
Put option: When you buy a put option, you get a right instead of an obligation, that is, you sell an underlying asset at a specific price (exercise price) at a certain time in the future. If the price of the underlying asset falls below the exercise price before the expiration date, you can choose to exercise and sell the underlying asset at the exercise price to make a profit. In other words, put options give you the right to profit from falling prices.
The core of option is right, not obligation. You can choose to exercise options or give up options, which depends on the price trend of the underlying assets and investment judgment.
As for futures, it is a standardized financial contract, and both parties agree to deliver the underlying assets at a specific price on a specific date in the future. Unlike options, futures contracts are contracts that both parties are obliged to perform, not just rights. Futures contracts are traded on exchanges with strict standardized rules and conditions.
Exchange stock options, like futures, are standardized products traded on exchanges. Investors' trading accounts can be opened and closed, and clearing and delivery are carried out by a unified clearing institution.
It is a tool for investor risk management, used for risk hedging and hedging transactions. Which investment tool to choose depends on your own situation.