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- Understanding call and put options:
- Call Options: Give the purchaser the right to buy an underlying asset at the strike price until the option expires.
- Put Options: Grant the purchaser the right to sell an underlying asset at the strike price up to the expiration date1.
- Traders sell a put option if they are bullish on the asset's price, and sell a call option if they are bearish on the price2.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.There are two principal types of options:
- Call Options: These give the purchaser the right to buy an underlying asset at the strike price until the option expires.
tradingliteracy.com/put-and-call-options-explained/Key Takeaways
- A call option gives a trader the right to buy the asset, while a put option gives traders the right to sell the underlying asset.
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