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, I want to go through our quick guide on the differences between calls and puts and I want to do this using a very simple mind matrix, I guess. The idea behind this is when I think about call options and put options and when I teach calls and puts and the basics of options trading for beginners, I think about things in the form of a matrix and the reason I do this is because I just compartmentalize a lot of things when I learn and I think that this is often useful for those who are getting started. When you think about the differences between calls and put options, you have to understand that there's two sides to every trade. You can be a buyer of calls and puts or you can be a seller of calls and puts and for every buyer, there's a seller and for every seller, there's got to be a buyer. When we go through this matrix, you’ll understand that each opposing side to the position has the opposing force on the other