Explore in this story the difference between Call Option and Put Option>>
Call options permit you to purchase an asset at a fixed price if you assume the price will go up.
Put options permit you to sell an asset at a fixed price if you expect the price to drop.
Strike price: Pre-agreed price. Premium: Cost of the option. Expiration: Date the option expires.
Buy a Call if you anticipate the stock price will increase and profit from the difference if the price goes up.
Buy a Put if you anticipate the stock price to decrease. Exercise the option at the strike price to limit losses in case of a price drop.
Call sellers assume stable prices; put sellers anticipate rising prices. Both profit from premiums paid by buyers.