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- Buying and selling call options have different implications:
- Buying call options: Gives the right to buy a stock at a fixed price before a specified date. Can be more profitable but riskier than buying the stock itself.
- Selling call options: Generates income but comes with obligations1.
- Call options: Provide the right to buy the underlying asset2.
- Put options: Provide the right to sell the underlying asset23.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Call options give buyers the right, but not the obligation, to buy a stock for a fixed price, on or before some date. Buying call options on a stock can be more profitable — but also more risky in percentage-change terms — than buying that stock itself. Selling (or "writing") call options can generate income.www.nerdwallet.com/article/investing/call-optionsThere are two main types of options - calls and puts. Call options provide the holder the right to buy the underlying asset. For example, purchasing a call option on a stock gives the owner the right to buy that stock at the strike price before the expiration date. Put options instead give the holder the right to sell the underlying asset.www.investopedia.com/buying-vs-selling-options-7…Structurally speaking, call and put options are relatively simple. A put option allows an investor to sell a security, usually though not always a stock, at a predetermined price. A call option allows that investor to buy a security at a predetermined price.www.investing.com/academy/trading/call-put-options/ - People also ask
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