Part 10 Trade Like Institutions

Types of Options

There are two main types of options: Call Options and Put Options.

A Call Option gives the holder the right to buy an asset at a predetermined price, known as the strike price, within a specific time frame. Investors buy calls when they expect the asset’s price to rise.

A Put Option gives the holder the right to sell an asset at the strike price before expiration. Traders buy puts when they anticipate a price decline.