top of page

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

long call.png

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)

Put buy.png

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. 

bottom of page