A call option is a financial contract between two parties, the buyer and the seller of the option. Under this contract buyer of the option has the right, but not the obligation to buy an agreed quantity of a particular commodity or financial instrument from the seller of the option at a certain time (the expiration date) for a certain price (the strike price). The seller (or "writer") has an obligation to sell this commodity or financial instrument if the buyer decides to do so. The buyer pays a fee (called a premium) to the seller for this right.

A put option is a financial contract between two parties, the seller (writer) and the buyer of the option. Under this contract the buyer has the right but not the obligation to sell an agreed quantity of a specific commodity (oil, gold, silver etc) or financial instrument (stock, future) to the writer (seller) of the option at a certain time for a certain price (the strike price). The writer (seller) has the obligation to purchase the underlying asset at that strike price if the buyer wishes to exercises the right.

Delta is the first derivative of the value of an option with respect to price of the underlying stock. Delta measures sensitivity of option price to a small change in the price of the underlying.

Vega is the measure of sensitivity of option price to volatility. Vega is the derivative of the option value with respect to the volatility of the underlying.

Thetaor "time decay" is the measure of the sensitivity of the option price with the passage of time. The value of an option is made up of two parts: the intrinsic value and the time value. The intrinsic value is the amount of money you would gain if you exercised the option immediately, so a call with strike 50 on a stock with price 60 would have intrinsic value of 10, whereas the corresponding put would have zero intrinsic value. The time value is the worth of having the option of waiting longer when deciding to exercise. Value of an option decays with the passage of time.

Rho measures sensitivity of option price to the applicable interest rate. Rho is the derivative of the option value with respect to the risk free rate.

Volatility refers to the standard deviation of the continuously compounded returns of a financial instrument with a specific time horizon. It is often used to quantify the risk of the instrument over that time period.