The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “What are the types of options?” Option contracts come in a couple of different types. It’s actually really not that complicated to understand once you get down into the terminology. But there’s basically two main types of option contracts and then there’s two varieties on top of that. That’s what I would call them, is notorieties within those two option contracts. The two main types are call options and put options. Call options give the option buyer the right, but of course, never the obligation to purchase the underlying shares or asset at a predetermined strike price in the future by a specified day which is usually referred to as the expiration date. This is as opposed to put option contracts which gives the option buyer the right, but not the obligation to sell the underlying asset or shares at a predetermined price, the strike price by a specified date in the future, ag