Videos
Call:
-Allows you to buy stock
-If you have one call that means you are able to buy that stock at your set price
-It has to reach the set price on or before your contract’s expiration
-If it doesn’t reach the set price, your contract deteriorates in value and you lose your option premium
-You buy it in hopes of stock going up
-As the stock price goes up, the call increases in value
-Similar to going long within stocks

Put:
-Allows you to sell stock (it gives you the right, but not the obligation)
-For example: you own 100 shares of Microsoft at $25 and you own a put of Microsoft at $20
-If the stock declines to $10/share and you have the put for that year, you can put somebody the stock at the $20 range
-You buy it in hopes of stock going down
-As the stock price goes down, the put increases in value
-You are hoping to sell the contract later at higher value
-Similar to short-selling

#stockoptions #stocktrading #stockmarket #stockputs #optionputs

Posted at: https://tradersfly.com/blog/the-basics-of-calls-and-puts/

???? GET MY FREEBIES

Freebies

???? SUBMIT A VOICE QUESTION

Question – Hungry for Returns

???? START HERE: FOR NEW TRADERS

Start Here – for New Traders

???? START HERE: OPTION TRADERS

Start Here – Option Traders

???? MY CHARTING TOOLS + BROKERS

tools

???? MY COMPUTER EQUIPMENT

Resources: Computer Gear

???? GET THE NEWSLETTER

YouTube Newsletter Signup

???? SEE OUR MEMBERSHIP PLANS
https://tradersfly.com/go/members/

???? STOCK TRADING COURSES

See All Our Trading Courses

???? STOCK TRADING BOOKS:

Our Stock Trading Books

? GET PRIVATE COACHING

Coaching for Stock Traders

???? WEBSITES:

Home Version 2.0

Home Page

Homepage 2.0

Home

Home

???? SOCIAL MEDIA:
https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/

? SUBSCRIBE TO OUR YOUTUBE CHANNEL
https://tradersfly.com/go/sub/

???? MY YOUTUBE CHANNELS:
TradersFly: https://backstageincome.com/go/youtube-tradersfly/
BackstageIncome: https://backstageincome.com/go/youtube-bsi/
MyLittleNestEgg: https://mylittlenestegg.com/go/youtube/

???? ABOUT TRADERSFLY
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.

Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better.

Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!

Articles You May Like

Jobs data sparks UST selloff that munis can’t ignore
Peru has attracted a slew of foreign investors into its credit market. Here’s why
China property stocks surge to highest levels in a year as stimulus rally continues
Stadium costs mount for state and local governments
Analysts: ports can handle pay raises