Friday, July 20th 2018

Question

What are puts and calls in the stock market?

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Answers (1)

29th Oct 2009 by JonB

A put option contract is the right, but not the obligation, to sell 100 shares of stock at a certain price for a certain amount of time.

A call option contract is the right, but not the obligation, to buy 100 shares of stock at a certain price for a certain amount of time.

When you think a stock is going to go up, you would be interested in buying call options. When you think a stock is going to go down, you would be interested in buying put options.

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19th Oct 2009 In Stocks 1 Answers | 397 Views

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