Derivative
Is Stock options (calls and puts) halal?
Not permissible
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Short answer
Buying or selling stock options means paying or receiving a premium for a right. Contemporary scholars overwhelmingly classify this as a sale of an intangible right that does not correspond to any classical contract, with strong elements of gharar and maysir.
The reasoning
Conditions
- For directional equity exposure, hold the underlying shares directly.
Red flags
- Any equity options strategy — buying, selling, covered, naked, spreads.