Before placing a trade, you need to understand the basic mechanics:
: The "deadline" for the contract. Unlike stocks, options do not last forever; they expire on a specific date. 2. Buying Options (Going "Long") buying and selling calls and puts
The Complete Guide to Buying and Selling Calls and Puts Options trading provides flexibility beyond simple stock ownership, allowing you to profit from upward, downward, and even sideways market movements. This guide breaks down the four essential moves every trader must master: buying calls, buying puts, selling calls, and selling puts. 1. The Core Building Blocks Before placing a trade, you need to understand