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- Trading puts and calls for dummies involves understanding the basics of options trading. Here are some key points to know:
- Call options give you the right to buy a stock at a specific price by an expiration date.
- Put options give you the right to sell a stock at a specific price by an expiration date.
- Both options have a strike price and an expiration date.
- Call buyers profit when the stock rises, while put buyers profit when it falls1234.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.A call option is the right to buy a stock at a specific price by an expiration date, and a put option is the right to sell a stock at a specific price by an expiration date. That's the short summary of these options contracts. Now, let's take a closer look at how call and put options work, as well as the risks involved with options trading.www.fool.com/investing/how-to-invest/stocks/call-o…Very simply, a call is the right to buy, a put is the right to sell. Both types of options, of course, come with two parameters. The first is a strike price, the price at which you will buy, in the case of a call, or sell in the case of the put, and they come with an expiration date. If it's July 2021, it's the third Friday of July.www.fool.com/investing/2021/05/18/options-for-beg…You can get started trading options by opening an account, choosing to buy or sell puts or calls, and choosing an appropriate strike price and timeframe. Generally speaking, call buyers and put sellers profit when the underlying stock rises in value. Put buyers and call sellers profit when it falls.www.nerdwallet.com/article/investing/how-to-trade …Call options: These give the holder (buyer) the right to buy a specified number of shares (usually 100) of a stock or ETF at the strike price, at any time until the contract expires. Put options: These give the holder the right to sell a specified number of shares of a stock or ETF at the strike price, at any time until the contract expires.www.cnbc.com/select/a-beginner-explainer-on-trad… - People also ask
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