Calls and puts in the stock market
An option gives the buyer of the option the right to buy a stock from a call option or to sell a stock to a put option the seller of the option at a specific price, called the strike price.
Option Types: Calls & Puts - gyranasoreso.web.fc2.com
Exercising a call option forces the seller of the option to sell the underlying stock at the strike price. The value of a call option moves in the same direction as the underlying stock price. Exercising a put option forces the seller of the option to buy the underlying stock at the strike price.
Options: The Basics -- The Motley Fool
The value of a put option moves in the opposite direction as the underlying stock price. An option contract has no value when the strike price is below the stock price in a put option or above the stock price in a call option. All options specify an expiration date, and the buyer of the option can exercise the option at any point up to and including that time.
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Quick Answer "Calls" and "puts" are types of options for trading stocks.
Stock market Options (Call & Put)Keep Learning What information on futures does CNN Money provide? How do investors choose the most profitable stocks? Full Answer Exercising a call option forces the seller of the option to sell the underlying stock at the strike price.
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