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ANSWERS: 3
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A "Put" is a contact giving the holder the right to sell. A "Call" is a contact giving the holder a right to buy
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The holder of a call option has the right (but not the obligation) to buy a specified quantity of a security at a specific price (strike price) within a fixed period of time (until its expiration). A put is an options contract in which the holder has the right (but not the obligation) to sell a specified quantity of a security at a specific price (strike price) within a fixed period of time (until its expiration). Source: http://www.theoptionsguide.com
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"Puts" are those options which a trader or investor uses when he/she expects the stock to go down. "Calls": are those options which a trader or investor uses when he/she expects the stock to go up. BOTH are traded in contracts. One contract equals 100 shares of stock. Acontract gives the trader or investor the right NUT NOT the obligation to buy a stock at a certain price within a certain period of time. There ARE sites on the Internet where those interested in trading options can learn more about trading options. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name! Sources: My wonderful family! My wonderful coaches and mentors! TWO [2] of THE ABSOLUTE BEST, MOST wonderful trading groups in the world, which I am most proud to be a member of! Trading stocks and options more than 2 years. "THE University of Hard Knocks"
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