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 shortselling
#stockoptions #stocktrading #stockmarket #stockputs #optionputs
Posted at: https://tradersfly.com/blog/thebasic...
Newsletter & Announcements : https://tradersfly.com/go/tube/'>https://tradersfly.com/go/tube/
Discord Group: https://tradersfly.com/go/discord/'>https://tradersfly.com/go/discord/
Freebies: https://tradersfly.com/go/freebies/'>https://tradersfly.com/go/freebies/
Start Here: https://tradersfly.com/go/start/'>https://tradersfly.com/go/start/
Options Basics: https://tradersfly.com/go/startoptions/'>https://tradersfly.com/go/startoptions/
ONEONONE COACHING & MENTORING :::
⚽ Coaching: https://tradersfly.com/go/coaching/'>https://tradersfly.com/go/coaching/
Options Mentoring (4+ Months) https://tradersfly.com/go/mentoring/'>https://tradersfly.com/go/mentoring/
PRODUCTS ::::
❤ Courses: https://tradersfly.com/go/courses/'>https://tradersfly.com/go/courses/
Books: https://tradersfly.com/go/books/'>https://tradersfly.com/go/books/
My Tools: https://tradersfly.com/go/tools/'>https://tradersfly.com/go/tools/
My Equipment https://backstageincome.com/go/comput...
SOCIAL MEDIA:
https://tradersfly.com/go/twitter/'>https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/'>https://tradersfly.com/go/facebook/
MY YOUTUBE CHANNELS:
TradersFly: https://backstageincome.com/go/youtub...
CriticalCharts: https://tradersfly.com/go/criticalcha...
BackstageIncome: https://backstageincome.com/go/youtub...
MyLittleNestEgg: https://mylittlenestegg.com/go/youtube/'>https://mylittlenestegg.com/go/youtube/
WEBSITES:
https://tradersfly.com
https://rise2learn.com
https://criticalcharts.com
https://mylittlenestegg.com
https://backstageincome.com
https://sashaevdakov.com
SOCIAL MEDIA:
https://tradersfly.com/go/twitter/'>https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/'>https://tradersfly.com/go/facebook/
MY YOUTUBE CHANNELS:
TradersFly: https://backstageincome.com/go/youtub...
BackstageIncome: https://backstageincome.com/go/youtub...
MyLittleNestEgg: https://mylittlenestegg.com/go/youtube/'>https://mylittlenestegg.com/go/youtube/
ABOUT TRADERSFLY
Tradesfly is focused on me sharing my experience and knowledge about trading options. Although we include videos related to other areas of trading, the primary focus is trading options. If you are serious about learning to trade options for selling premium, creating spreads, be sure to subscribe to the channel and join our discord group.
DISCLAIMER
All of the stocks mentioned in this video along with any other videos we have are opinions and not investment, financial or legal advice. These videos are for general education, information, and entertainment. Do your own due diligence and consult with a registered financial advisor before taking any position since everyone has a different risk tolerance.