: Standard equity options typically control 100 shares of the underlying stock. The Four Basic Moves
(premium paid); high profit if stock falls to zero. Sell Put Bullish / Neutral
: Gives the buyer the right to sell a stock at a set strike price before a specific expiration date. buy call sell put
The choice to buy or sell depends on whether you are (expecting prices to rise), bearish (expecting prices to fall), or neutral . Strategy Name Market Outlook Risk / Reward Profile Buy Call Limited loss (premium paid); unlimited profit . Sell Call Short Call Bearish / Neutral
(premium received); unlimited loss if stock rises. Buy Put : Standard equity options typically control 100 shares
The four basic moves in options trading—buying calls, selling calls, buying puts, and selling puts—each represent a different market outlook and risk profile. Core Concepts of Calls and Puts
: Gives the buyer the right to buy a stock at a set "strike price" before a specific expiration date. The choice to buy or sell depends on
(premium received); high loss if stock falls. Basic Call and Put Options Strategies | Charles Schwab