Buying And Selling Calls And Puts -

When you sell an option, you receive the premium upfront but take on an if the buyer chooses to exercise their right. Short Call (Bearish or Neutral) Options Trading Basics | How to Buy & Sell Calls and Puts

: Realized if the stock price moves above the strike price plus the premium paid. Long Put (Bearish) Goal : You expect the stock price to fall . Right : You can sell the stock at the strike price. Risk : Limited to the premium paid. buying and selling calls and puts

: Realized if the stock price drops below the strike price minus the premium paid. 3. Selling Options (Writing "Short") When you sell an option, you receive the

Before placing a trade, you need to understand the basic mechanics: Right : You can sell the stock at the strike price

: The predetermined price at which the stock can be bought or sold.