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- Call and put options are financial contracts that give the holder the right but not the obligation to buy or sell a specified amount of an underlying asset at a specified price within a specified time period123. Call options let the holder profit from an increase in the underlying asset price, while put options let the holder profit from a decrease in the underlying asset price123. The value of call and put options depends on various factors, such as the underlying asset price, the option strike price, time decay, interest rates, and volatility23.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 primary types of options: call options and put options. Call options give the holder of the contract the right to purchase the underlying security, while put options give the holder the right to sell shares of the underlying security. Both can be used to let investors profit from movements in a stock’s price.www.thebalancemoney.com/call-and-put-options-d…Call options are financial contracts that give the option buyer the right but not the obligation to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset. A call buyer profits when the underlying asset ...www.investopedia.com/terms/c/calloption.aspPut options are traded on various underlying assets, including stocks, currencies, bonds, commodities, futures, and indexes. A put option can be contrasted with a call option, which gives the holder the right to buy the underlying security at a specified price, either on or before the expiration date of the option ...www.investopedia.com/terms/p/putoption.asp
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