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

Hey everyone, Kirk here again at Option Alpha and welcome back to the daily call. In today's daily call, we are going to talk about the differences between buying and selling calls and puts with stock options. There’s basically four different ways as the major building blocks or fundamental mechanics of how you can trade options and the four different ways are – You can buy a call, you can buy a put or you can sell a call and you can sell a put. And so, today, I want to go through each one of these and break them down just a little bit more, so that you understand what each one entails and what the obligations and the risks are associated with each one of these. Now again, these are the building blocks. This is the framework of how you basically can create any option strategy payoff diagram you want by using these four core fundamental different option types. The first one is to buy a call. When you are buying a call option, you’re basically buying the right to go long 100 shares of stock at a specific strike