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- Options trading involves two main types of contracts: call options and put options1234. Here's what they mean:
- Call options: Give the buyer the right to purchase an underlying asset at a predetermined price. Buyers profit when the asset's price rises above the strike price.
- Put options: Grant the right to sell an underlying asset at a specified price. Buyers benefit when the price falls below the strike price.
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 to purchase an underlying asset at a predetermined price, while put options grant the right to sell at a specified price. Buyers of call options profit when the underlying asset’s price rises above the strike price, whereas put option buyers benefit when the price falls below it.www.strike.money/options/call-vs-put-differencesTraders purchase call options if they expect that the price of the asset is going to rise. A put option, on the other hand, gives traders the right to sell the underlying asset. Traders buy put options if they expect that the price of the asset is going to decline. Traders sell call options and put options in the opposite direction.www.investopedia.com/ask/answers/06/sellingoptio…There are two basic types of options: “call” and “put” contracts. Call options: the right to buy (call) a stock or underlying security Put options: the right to sell (put) a stock or underlying security A trader who believes a stock will go up would buy call options, and a trader who thinks a stock will go down would buy put options.www.stash.com/learn/how-to-trade-options/There 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… - People also ask
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