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  2. 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…
    Put simply, an option gives you the right either to buy or to sell shares of stock for a certain price on or before a fixed date. There are two types of options: call options and put options. Call options give the holder of the option the right to buy stock. Put options, on the other hand, let the option holder sell stock.
    www.fool.com/investing/options/options-the-basics.…
    A call option is the right to buy a stock at a specific price by an expiration date, and a put option is the right to sell a stock at a specific price by an expiration date. That's the short summary of these options contracts.
    www.fool.com/investing/how-to-invest/stocks/call-o…
    With a call option, the buyer of the contract purchases the right to buy the underlying asset in the future at a predetermined price, called exercise price or strike price. With a put option, the buyer acquires the right to sell the underlying asset in the future at the predetermined price.
    www.investopedia.com/articles/active-trading/0409…

    Very simply, a call is the right to buy, a put is the right to sell. Both types of options, of course, come with two parameters. The first is a strike price, the price at which you will buy, in the case of a call, or sell in the case of the put, and they come with an expiration date.

    www.fool.com/investing/2021/05/18/options-for-beg…
     
  3. People also ask
    How do I buy a call and put option?Call and put options can be purchased — and sold — through most major brokerages. Buying a put option requires the investor only to put up cash or margin capacity equal to the premium required. The premium is the maximum risk to the trade. Investors buying a put option should use a limit order, ideally at a price below the quoted ask.
    What is the difference between a call and a put option?A call option is in the money (ITM) if the underlying asset's price is above the strike price. A put option is ITM if the underlying asset's price is below the strike price. For calls, it's any strike lower than the price of the underlying asset. For puts, it's any strike that's higher. 3 Describes an option with no intrinsic value.
    What is a call & put?Options: calls and puts are primarily used by investors to hedge against risks in existing investments. It is frequently the case, for example, that an investor who owns stock buys or sells options on the stock to hedge his direct investment in the underlying asset.
    What are call options & put options?It's more than just how they turn a profit Call options and put options are derivatives that let you trade the right to buy or sell securities at a set price. Here’s how they’re different.
     
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