Types of Options
Assorted by the right of options buyers, options can be classified as “Call” and “Put”.
Call options can be referred as buying right, giving the options owner the right to buy an asset at a specific price in a specific time. Call options is similar to holding the long position of a stock, the call option buyers are expecting the stock price can rise dramatically before the option expire.
Put options can be referred as selling right, giving the options owner the right to sell an asset at a specific price in a specific time. Put options is similar to holding the short position of a stock, the put option buyers are expecting the stock price can drop before the option expire.
