Options for dummies


Hi I have been doing research on options and I’m a bit confused between a call and a put.

“An options contract might allow its owner to buy 100 shares of an underlying asset (that would be a “call”), or might allow its owner to sell 100 shares of an underlying asset (that would be a “put”)”

“You may also potentially profit from options trading by buying and selling contracts. This the most common way options traders attempt to profit from trading options. Options often expire with no value, so you should understand their risks before investing. Also, be aware some complex options might expose you to losses beyond what you paid or earned in your original transaction”

Can someone explain this stuff in layman terms 🤯


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