Buying an option, let’s say a call says that you are only willing to pay so much for the stock and you pay premium to have that right. Selling a call says that you are willing to sell your stock at a certain price. Buying a put option says that you’re willing to sell your stock at a certain price selling a put option is saying that you are willing to buy that stock no matter how long it goes.
Buying an option, let’s say a call says that you are only willing to pay so much for the stock and you pay premium to have that right. Selling a call says that you are willing to sell your stock at a certain price. Buying a put option says that you’re willing to sell your stock at a certain price selling a put option is saying that you are willing to buy that stock no matter how long it goes.