Call Options

A call is the option for an investor to buy an asset at the strike price (predetermined price) on or before a certain date. An investor would buy a call option if he or she anticipated the price of the asset was going to rise before the option reached the expiration date.

Put Options

A put is the option for an investor to sell an asset at the strike price (predetermined price) on or before a certain date. An investor would buy a put option if he or she anticipated the price of the asset was going to drop before the option reached the expiration date.

Why Trade Options

Investors buy and sell options just like stocks. The advantage of trading options is the flexibility to place bets on specific market outcomes. For example, an investor can place a bet that in 30 days an asset will be trading either above or below a certain price. With this trading method, you have the opportunity to always be in the money!