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Table 6.1
The table below is a list of considerations to decide on whether to Buy or Sell a STOCK or an OPTION
A helpful guide about options
1. There are two kinds of options, namely, PUTs and CALLs
2. An investor can Buy or Sell a PUT or a CALL option
3. The diagram below shows when an individual investor
would consider Buying or Selling a PUT or a CALL
 | ||||
CALL PUT
BUYER
SELLER
The diagram on the right shows
the direction an
underlying STOCK or FUND
is expected to go by the
BUYER or SELLER
of
a CALL or a PUT
option
NOTE: Selling an option (either a PUT or a CALL) has a higher probability to profit.
Buying a Stock or Fund is 50/50.
Buying an option (either PUT or CALL) has a lower probability to profit.
Search the Internet to learn more about a subject on options & ways to trade options.
