What is a “put” or a “call” ?

[DanDare]

A commonly asked question is “what is a put?” or “what is a call?”

Puts and calls are terms used when buying or selling options

Buying an option is known as a call and allows you to simulate a long position on a stock, similarly a put enables you to simulate shorting a stock

A call option Is a contract that allows the buyer to buy a stock at specified price at any given time during the time span of the option

A put option Is a contract that allows the buyer to sell a stock at specified price at any given time during the time span of the option

[amstrong123]

This is nice...I didn’t know it before...Can you please share more about option trade? I am a new comer on this matter and want to invest money. Can you please share how can I make profit and what is the procedure to invest money on stock market? Waiting for reply...

[itsbearabull]

Options are derivatives, deriving their value from another underlying asset.
When you buy an option, there is a contract with set terms, giving you an option to buy or sell a specific stock, index, or future at a specific price on or before a specific date, but it is not an obligation. You don’t actually own the stock, nor do you ever have to buy the stock to profit or lose money on options.

[itsbearabull]

Options also allow traders to make money fast if they’re right, but when the market reverses, they can walk away and owe nothing! There is an expression, “your loss is limited to what you paid for an option” but note that can also mean you can lose 100%! So options can be very risky and is usually not recommended for beginners.

-------
www.dojitrading.com - Daily Stock Picks

[Dodjit]

Call option premiums are always quoted per stock, but sold in lots of 100 shares minimum. Call options are always an agreement about being able to purchase the stock at the agreed upon price. Call options come in both European style and American style.

[noram567]

Thanks for sharing this.

What is writing a call or put? Why does the broker require us to hold a margin with them for doing this?

[Juanitaodr293]

put your call

[allenmass]

Thanks for sharing.Call option premiums are always quoted per stock, but sold in lots of 100 shares minimum. Call options are always an agreement about being able to purchase the stock at the agreed upon price.It's really nice.

[pennystockville]

That's really awesome.. Excellent tips here, well done for sharing this information...

Pennystockville

[allie]

Options, if you know how to play them, can really lead to fortunes being made. Anyone have any specific ones they're looking at? I have to think AAPL is going to be coming down soon, this run up is ridiculous. People are reporting trouble with the iPhone 4, but is it enough to stop the juggernaut? I don't know.