What Are Call and Put Options: 02
Call and put options are derivative investments. That means their price moves based on the price movements of another financial product.
A call option is bought if the trader expects the price of the underlying asset to rise within a certain time frame.
A put option is bought if the trader expects the price of the underlying asset to fall within a certain time frame.
Puts and calls can also be written and sold to other traders. This generates income but gives up certain rights to the buyer of the option