Skip to main content

What Are the Two Main Types of Options Contracts?

The two main types are Call options and Put options. A Call option gives the holder the right, but not the obligation, to buy an underlying asset at a specified price (strike price) before or on a certain date.

A Put option gives the holder the right, but not the obligation, to sell the underlying asset at the strike price.

What Is the Maximum Loss for an Option Buyer?
Define the Obligation Difference between a Call Option Buyer and a Futures Buyer
How Does the Lack of Obligation Differ from a Futures Contract?
What Is the Process of “Assignment” or “Exercise” in Options Trading?