Equity options are a form of derivative product used only to trade best equity funds as an underlying asset. In essence, equity options work extremely similar and akin to other options, such as forex or commodities. They give the trader the right, but not the obligation, to buy (or sell) a certain amount of shares at a certain level (called a "strike price") before maturity. To buy an option, traders will pay a premium. In general, the issuance of bonuses is practiced by companies when they do not wish to pay dividends but to distribute free shares.