Call vs Put Options Basics

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http://optionalpha.com – There are only 2 types of options contracts; Calls or Puts and everything you can do in this space revolves around the use of these 2 contract types. In this video, we’ll get into some very basic differences between Calls and Puts for options trading.

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Comments

Dean Bonsu says:

can you day trade options? and is there a limitation on how many times you can sell/ close a position? (like the 3 day trade rule in stocks)

SaddestSandwich says:

Thank you!!!

Rod L says:

How much taxes do you pay to the irs for trading ?

Heidi W says:

thank you so much! this helps a lot

stlchevy95 says:

this is my first time hearing of options trading. correct me if im wrong but if i buy a call contract at $200 at a price of $40, how many shares does that give me? im going off of your example

Kurtie7 says:

Thank you Option Alpha !!

Josh Chat says:

Thank you, you did a great job.

Sandeep Kumar says:

great explanation !! got basics cleared

FDAmusic says:

good way to explain buy to open and sell to close!

Joel Liboiron says:

Do I need to have the full value of the trade available in my account to exercise the option?
For example: I would like to purchase Jan 2018 Put options with a $230 strike price at a cost of 30$, and I would like to purchase 1 contract.
30$ x 1 x 100 = $3000 for the cost of the trade . If the price drops down to 200$ and I want to exercise my option, do I need to have the funds in my account to cover the cost of the trade? $200 x 1 x 100 = $20,000 value?

ki5ngau says:

you are the smartest guy in the room.

Martin M says:

The price of the contract is $200 because the buyer/seller is paying a premium of $2 per share?

jcflocher says:

Very well explained! Thank you!

grace Penano says:

you talked fast slow down nibody racing fir you but good explanation..

Mr International says:

thanks, looking forward to the selling aspect

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