Buying And Selling | Calls And Puts

: The predetermined price at which the stock can be bought or sold.

: One standard equity option contract typically controls 100 shares of the underlying stock. buying and selling calls and puts

: Realized if the stock price moves above the strike price plus the premium paid. Long Put (Bearish) Goal : You expect the stock price to fall . Right : You can sell the stock at the strike price. Risk : Limited to the premium paid. : The predetermined price at which the stock

: Realized if the stock price drops below the strike price minus the premium paid. 3. Selling Options (Writing "Short") options do not last forever

: The "deadline" for the contract. Unlike stocks, options do not last forever; they expire on a specific date. 2. Buying Options (Going "Long")