Call
Options - A call options buyer
is a trader who believes in a rising market and expects
to profit from an upward price move. By buying calls an
options trader is buying a right to purchase the
underlying stock at a specific price, at or before the
expiration date.
Naked
Options - A call options
seller is a trader who believes in a falling market and
expect to profit from the downward move.
Sell
Call Options - Selling (also
called “writing”) call options means giving someone else
(i.e., the option holder) the right to purchase an
underlying stock or index at a given strike price.
Sell Put
Options - By selling a put option, you are giving an
option holder the right to sell an underlying stock or
index at a particular strike price.
