Intermediate
Calls and puts
Rights, not obligations (for buyers): calls vs puts in plain English. Education only — not a recommendation to buy, sell, or hold anything.
Call option (buyer)
A call buyer has the right to buy the underlying at the strike before/at expiration (style-dependent). Pays a premium. Can expire worthless.
Put option (buyer)
A put buyer has the right to sell the underlying at the strike. Also pays premium; also can go to zero.
Sellers / writers
- Option sellers collect premium and take on obligation.
- Risk profiles differ sharply from buying — especially uncovered short calls.
Education boundary
This is vocabulary for the lab — not a signal to trade options with real money.
Practice tip: Start at Call vs put, then fake premiums on /mock/options/.