What Is the Difference between a Call Option and a Put Option?
A call option gives the holder the right, but not the obligation, to buy an underlying asset at a specific price on or before a future date. A put option gives the holder the right, but not the obligation, to sell an underlying asset at a specific price on or before a future date.
The main difference between a call option and a put option is the direction of the trade. A call option is a bullish bet, while a put option is a bearish bet.
Glossar
Underlying Asset
Foundation ⎊ The concept of an Underlying Asset, within cryptocurrency derivatives and financial markets, establishes the core reference point for valuation and risk transfer.
Put Option
Insurance ⎊ Purchasing a Put Option functions as a form of portfolio insurance, establishing a guaranteed minimum selling price for the underlying crypto asset.
Call Option
Upside ⎊ Acquiring a Call Option provides leveraged upside participation in the appreciation of a specific cryptocurrency asset.