Why Buy Option Calls and Puts?


A lot of traders buy calls and puts instead of buying the whole 100 shares of a given stock. The good
thing about options is that you can control the whole 100 shares of a stock by spending little money.
If you buy a call contract and the stock goes up, you will be making money. Another good thing about options
is that you short the stock without selling it short by using puts contracts. That means if you think the stock
is going down, you can buy a put and if it really goes down your put will make money. The only disadvantage is that
you will be risking the whole call or put option premium that you paid. Options as calculated differently
than a stock do. If you are really interested to know more, just check training level 14
called How to trade call and put options?
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