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  2. Options are divided into "call" and "put" options. 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…
    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 option and Put option are the two main types of options available in the derivatives market. A Call option is used when you expect the prices to increase/rise. A Put option is used when you expect the prices to decrease/fall.
    www.samco.in/knowledge-center/articles/explaine…
    A call option provides an investor with the right, but not the obligation to purchase a stock at a specific price. This price is known as the strike, or exercise price. A put option provides an investor with the right, but not the obligation to sell a stock at a specific price. This price is also known as the strike, or exercise price.
    www.investopedia.com/articles/active-trading/0709…
    To put it simply, the purchase of put options allow you to sell at a strike price and the purchase call options allow you to buy at a strike price. If used properly, they both offer options traders protection, leverage and potential for higher profits.
    www.benzinga.com/money/puts-vs-calls
     
  3. People also ask
    What are call and put options?There are 2 basic kinds of options: calls and puts. When you buy either type, you have the ability to exercise the option if it benefits you—but you can also let it expire if it doesn't. You can make money by selling your own options (known as "writing" options).
    Do puts and calls have buyers?But puts and calls don’t just have buyers; they also have sellers. When you write a call, you collect the premium from the buyer, and in exchange, you’re obligated to sell the underlying stock to the buyer for the strike price — if they choose to exercise the option before expiration.
    Why do traders buy call options?Traders usually buy call options on a stock when they are very bullish on that stock and want bigger gains than those from simply owning the stock. If the stock is trading above the strike price at expiration, then a call buyer can exercise or resell the option for a profit.
    How do you trade call options?There are two basic ways to trade call options, a long call option and a short call option. A long call option is the standard call option in which the buyer has the right, but not the obligation, to buy a stock at a strike price in the future.
    Should you buy a put or a call option?Ultimately, there’s an option strategy for almost every situation. When you buy a call option, you pay a premium for the right to purchase the option’s underlying stock at a set price on or before the option’s expiration date. When you buy a put, the same thing applies in the inverse.
    How are put options traded?Put options, as well as many other types of options, are traded through brokerages. Some brokers have specialized features and benefits for options traders. For those who have an interest in options trading, there are many brokers that specialize in options trading. It’s important to identify a broker that is a good match for your investment needs.
     
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