1. Purchase Phone:
Buying up refers to the behavior of investors buying call options. Call option gives the holder the right to buy the underlying assets at an agreed price at a specific time in the future. By buying out call options, investors expect the underlying asset price to rise, hoping to buy assets at a lower exercise price in the future and sell them at a higher price in the market, thus making a profit.
2. Buy put options:
Buying down refers to the behavior of investors buying put options. Put option gives the holder the right to sell the underlying assets at an agreed price at a specific time in the future. By buying put options, investors expect the price of the underlying assets to fall, hoping to sell assets at a higher exercise price in the future and buy them back at a lower price in the market, thus making a profit.
These two trading strategies are based on the prediction of the future price trend of the underlying assets. The goal of call option is to profit from the rising of the underlying asset price, while the goal of put option is to profit from the falling of the underlying asset price. Investors acquire rights by purchasing option contracts and paying a certain amount of royalties, and decide whether to exercise options when the contracts expire.