Buying Selling Options Puts Calls Apr 2026

: One standard equity option contract typically represents 100 shares of the underlying stock.

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

: Give the buyer the right to sell an asset at the strike price by expiration. : One standard equity option contract typically represents

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 and selling options involves two primary types

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

: This is the price you pay (as a buyer) or receive (as a seller) for the option. 2. Buying Options (Going "Long")