Call and Put Options for Beginners, Exclusive Call Buy & Put Buy Software

Price of the underlying Asset                            What to do

      Expected to increase                                         BUY Call Option

      Expected to decrease                                         BUY Put Option

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What Happens to Call Options on Expiry? – Buying Call Option

When you buy a call option, three things can happen on expiry: 

  • Market Price > Strike Price = In the Money call option = Gains / Profits

  • Market Price < Strike Price = Out of Money call option = Loss 

  • Market Price = Strike Price = At the Money call option = Break – Even (No profit no loss)

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What Happens to Put Options on Expiry? – Buying Put Option

When you buy a put option, three things can happen on expiry: 

  • Market Price > Strike Price = Out of Money put option = Loss 

  • Market Price < Strike Price = In the Money put option = Gain / Profits 

  • Market Price = Strike Price = At the Money call option = Loss of premium paid.