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- Call and put trading are two types of options trading123.When you buy a call, you make a small payment, or the “premium,” in exchange for the right to purchase the underlying stock at a set price, or the “strike price,” on or before a specified date, or the “expiration"1.When you buy a put, you make a small payment, or the “premium,” in exchange for the right to sell the underlying stock at the strike price on or before expiration1.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 security2.Investors purchase a call option when they anticipate the rise of a stock and sell a put option when they expect the stock price to fall3.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.When you buy a call, you make a small payment, or the “premium,” in exchange for the right to purchase the underlying stock at a set price, or the “strike price,” on or before a specified date, or the “expiration." Buying a put is similar, except it gives you the right to sell the underlying stock at the strike price on or before expiration.www.nerdwallet.com/article/investing/call-vs-putCall 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. However, there are very important differences in how they work.www.thebalancemoney.com/call-and-put-options-d…Options trading can become a lot more complex depending on the specific options an investor chooses to purchase. Simply put, investors purchase a call option when they anticipate the rise of a stock and sell a put option when they expect the stock price to fall.smartasset.com/financial-advisor/call-vs-put
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