Buying Selling Options Puts Calls [UPDATED]

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

When you buy an option, your risk is strictly limited to the premium you paid. buying selling options puts calls

: One standard equity option contract typically represents 100 shares of the underlying stock. : This is the price you pay (as

: 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

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