Monday, November 26, 2012

Options Trading: Calls & Puts


  • Buying a Call - You have the right to buy a stock at a predetermined price.
  • Selling a Call - You have an obligation to deliver the stock at a predetermined price to the option buyer.
  • Buying a Put - You have the right to sell a stock at a predetermined price.
  • Selling a Put - You have an obligation to buy the stock at a predetermined price if the buyer of the put option wants to sell it to you.


    • From the link: http://www.investopedia.com/articles/optioninvestor/10/sell-puts-benefit-any-market.asp#ixzz2DJNoypfV
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