What is the difference between a call/put option and a CDS on a high yield bond?

A call/put option is a financial derivative that gives the holder the right (but not the obligation) to buy (call) or sell (put) an underlying asset at a predetermined price (strike price) before a specified expiration date.

A CDS (credit default swap) is a financial derivative that provides protection against the risk of default of a bond or other debt instrument.

In a CDS, one party (the protection buyer) pays a fee to another party (the protection seller) in exchange for the right to receive a payment if the bond defaults.

In summary, a call/put option is a derivative that gives the holder the right to buy or sell an asset at a predetermined price, while a CDS is a derivative that provides protection against the risk of default of a bond or other debt instrument.