What are options?

04 Jun What are options?

Call option (or “calls”): Stock options that give the buyer of the option the right, but not the obligation, to purchase stocks at the stated “strike price” by the “expiration date.” When you sell a call, you assume the potential obligation to sell shares at the strike price.

Put option (or “puts”): Stock options that give the buyer of the option the right, but not the obligation, to sell stocks at the stated “strike price” by the “expiration date.” When you sell a put, you assume the potential obligation to buy shares at the strike price.