DETAILS
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CALL OPTIONS
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PUT OPTIONS
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Option buyer or / option holder.
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Buys the right {Contract} to buy the underlying asset at the specified price.
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Buys the right (Contract) to sell underlying asset at the specified price.
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Option seller or / option writer.
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Has the obligation to sell the underlying asset {To the option holder} at the specified price.
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Has the obligation to buy the underlying asset {From the option holder} at the specified price.
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A Put Option is the right to sell a stock at the strike price. Used when you think the stock price will decrease in value.A Call Option is the right to buy a stock at the strike price. Used when you think the stock price will increase in value.Thanks for your nice post.
ReplyDeleteBy
John Methew
Options Trading