Buying And Selling Stock Options May 2026

There are two primary types of options, which function differently depending on whether you are the buyer or the seller:

You expect the stock price to rise . It grants the right to buy 100 shares at the strike price. buying and selling stock options

You expect the price to stay flat or fall . You are obligated to sell your shares if the buyer exercises their right. Put Options There are two primary types of options, which

You expect the price to stay flat or rise . You are obligated to buy the shares if the buyer exercises their right. Buy vs. Sell Dynamics What are call and put options? - Vanguard buying and selling stock options