The basic difference between option put and call means:

Call option: the buyer has the right to purchase the underlying assets, and the seller undertakes the obligation to sell the underlying assets.

Put option: the buyer has the right to sell the underlying assets, and the seller undertakes the obligation to purchase the underlying assets.

the two can carry out different investment operations by buying (Long) and selling (Short), and correspond to different strategies:

buy Call: the buyer pays the royalty and obtains the right to buy the underlying assets at a fixed price in the future. Applicable to the bullish market, investors expect the underlying asset price to rise.

sell Call: the seller collects royalties and needs to sell the underlying assets at a fixed price in the future. Suitable for bearish or sideways markets, investors expect the underlying asset price not to rise to the exercise price.

buy Put: the buyer pays royalties and obtains the right to sell the underlying assets at a fixed price in the future. Applicable to the bearish market, investors expect the underlying asset price to fall.

selling Put: the seller collects royalties and needs to buy the underlying assets at a fixed price in the future. Suitable for bullish or sideways markets, investors expect that the underlying asset price will not fall to the exercise price.

buying a Call is similar to selling a Put, because both of them give the buyer the right, but the difference is that buying a Call is optional, while selling a Put is obligatory, and it is necessary to fulfill the obligation to purchase the underlying assets when exercising the right.

in option trading, the buyer pays the royalty, and the income potential depends on the change of the underlying asset price. The seller collects royalties, but may face potential risks, especially in a bullish market.

for example, take the purchase of 3 yuan call option as an example: if the underlying asset price rises to 32 yuan, the buyer's income will be the percentage of the underlying asset price change. Selling 3 yuan call options is a restrictive obligation, that is, when the underlying asset price exceeds 3 yuan, the seller may lose additional income, but the royalty is the seller's income in option trading.

@ option sauce

call option:

Long Call: the buyer pays the option fee and obtains the right to purchase the underlying asset at a fixed price (exercise price) in the future. This is an option that allows buyers to buy in the future, but it is not mandatory.

Short Call: the seller collects royalties, but needs to sell the underlying assets at a fixed price in the future. Sellers have to fulfill their obligations and may face unlimited risks.

put option:

Long Put option: the buyer pays the option fee and gains the right to sell the underlying assets at a fixed price in the future. This is also an option that allows buyers to sell in the future, but it is not mandatory.

put option: the seller collects royalties, but needs to buy the underlying assets at a fixed price in the future. Sellers have to fulfill their obligations and may face limited or unlimited risks.

investment strategy:

both the call option and the put option are bought to gain rights, which are suitable for investors who have a clear view on the future price trend of the underlying assets.

The purpose of selling call options and put options is to collect the premium, which is applicable when investors expect the market price not to reach a certain level.

Fees and benefits:

Buying options requires paying option fees, and the potential of benefits lies in the change of the underlying asset price.

The option is sold to collect the premium, but the potential loss may exceed the premium collected, especially when the call option is sold.