And Selling Stock Options — Buying

You expect the stock price to fall . It grants the right to sell 100 shares at the strike price, acting like insurance.

You expect the stock price to rise . It grants the right to buy 100 shares at the strike price. buying and selling stock options

You expect the price to stay flat or rise . You are obligated to buy the shares if the buyer exercises their right. Buy vs. Sell Dynamics What are call and put options? - Vanguard You expect the stock price to fall

You expect the price to stay flat or fall . You are obligated to sell your shares if the buyer exercises their right. Put Options buying and selling stock options