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- Puts and calls are types of options that allow investors to buy or sell a security at a predetermined price12.
- A put option allows an investor to sell a security at a predetermined price12.
- A call option allows an investor to buy a security at a predetermined price12.
- Options are available on nearly every major exchange on the majority of stocks and exchange-traded funds1.
- If used properly, puts and calls offer options traders protection, leverage and potential for higher profits2.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.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. It’s simple to buy call or put options, as options are available on nearly every major exchange on the majority of stocks and exchange-traded funds.www.investing.com/academy/trading/call-put-options/Main Takeaways: Puts vs. Calls in Options Trading
- To put it simply, the purchase of put options allow you to sell at a strike price and the purchase call options allow you to buy at a strike price.
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