Summary of Basic Option Strategies
Buy a Call
(Long Call)You pay a premium for the right to buy the stock at the strike price. Sell a Call
(Short Call)You get a premium for taking on the obligation to sell a stock you don't own at the strike price. Sell a Covered Call You get a premium for taking on the obligation to sell a stock that you own at the strike price. Buy a Put
(Long Put)You pay a premium for the right to sell a stock you don't own at the strike price. Buy a Protective Put You pay a premium for the right to sell a stock that you own at the strike price. Sell a Covered Put
(Short Put)You get a premium for taking on the obligation to buy a stock at the strike price.
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