Two Contracts. Two Sides.

Lesson Overview:
    • Who exchanges options
      • Buyer
        • Pays for the right to do something
        • Typically takes a small amount of defined risk for a potentially large payout
      • Seller (often called the Writer)
        • Is paid for giving the right (and taking on the obligation)
        • You can sell options even if you don’t own them
    • What is a put option
      • From the buyer’s perspective, it’s the right to Sell
      • From the seller’s perspective, has the obligation to Buy 
      • Review practical purposes for buying and selling puts 
    • What is a call option
      • From the buyer’s perspective, gives the right to Buy
      • From the seller’s perspective, has the obligation to Sell
    • Review examples
    • Quiz
    • Journal