Buying Selling Options Puts Calls Apr 2026

: Give the buyer the right to buy an asset at a set price ( strike price ) by a specific date ( expiration ).

: Give the buyer the right to sell an asset at the strike price by expiration. buying selling options puts calls

When you buy an option, your risk is strictly limited to the premium you paid. : Give the buyer the right to buy

Buying and selling options involves two primary types of contracts: and puts . These allow you to speculate on price movements or protect existing investments with more flexibility than traditional stock trading. 1. The Core Mechanics buying selling options puts calls