The Complete Guide to Buying and Selling Calls and Puts Options trading provides flexibility beyond simple stock ownership, allowing you to profit from upward, downward, and even sideways market movements. This guide breaks down the four essential moves every trader must master: buying calls, buying puts, selling calls, and selling puts. 1. The Core Building Blocks
: Realized if the stock price drops below the strike price minus the premium paid. 3. Selling Options (Writing "Short") buying and selling calls and puts
: One standard equity option contract typically controls 100 shares of the underlying stock. The Complete Guide to Buying and Selling Calls
When you buy an option, you have the , but not the obligation , to trade the stock. Long Call (Bullish) Goal : You expect the stock price to rise . Right : You can buy the stock at the strike price. Risk : Limited to the premium paid. The Core Building Blocks : Realized if the
