Understanding Calls and Puts

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/

πŸ”₯ GET MY FREEBIES

Freebies

🎀 SUBMIT A VOICE QUESTION

Question – Hungry for Returns

πŸ‘€ START HERE: FOR NEW TRADERS

Start Here – for New Traders

πŸŽ‰ START HERE: OPTION TRADERS

Start Here – Option Traders

πŸ“ˆ MY CHARTING TOOLS + BROKERS
https://tradersfly.com/go/tools/

πŸ’» MY COMPUTER EQUIPMENT

Resources: Computer Gear

πŸ’Œ GET THE NEWSLETTER

YouTube Newsletter Signup

πŸ”’ SEE OUR MEMBERSHIP PLANS
https://tradersfly.com/go/members/

πŸ“Ί STOCK TRADING COURSES

See All Our Trading Courses

πŸ“š 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

πŸ’Œ SOCIAL MEDIA:
https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/

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

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

πŸ“‘ 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

3 Surprising Short-Squeeze Opportunities to Jump On Now
MULN Stock Price Prediction: Mullen Is in the Fast Lane to Zero
15 Swing Charts to Practice Your Technical Analysis Skills (Members Preview)
3 Stocks That Will Make You Poor if the Housing Market Tanks
Is PDD Holdings (PDD) A Buy Ahead of Q1 Earnings Announcement?