# What Is the Difference between a Call Option and a Put Option? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## 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.

- [Differentiate between a ‘Call Option’ and a ‘Put Option’](https://learn.greeks.live/path/differentiate-between-a-call-option-and-a-put-option/)

- [What Is the Fundamental Difference between a Call Option and a Put Option in Crypto?](https://learn.greeks.live/path/what-is-the-fundamental-difference-between-a-call-option-and-a-put-option-in-crypto/)

- [What Are the Two Main Types of Options?](https://learn.greeks.live/path/what-are-the-two-main-types-of-options/)

- [What Is a ‘Covered Call’ Strategy?](https://learn.greeks.live/path/what-is-a-covered-call-strategy/)

- [What Is the Difference between a “Call Option” and a “Put Option”?](https://learn.greeks.live/path/what-is-the-difference-between-a-call-option-and-a-put-option/)

- [What Is a Call Option versus a Put Option in Crypto Trading?](https://learn.greeks.live/path/what-is-a-call-option-versus-a-put-option-in-crypto-trading/)

- [What Is the Fundamental Difference between a Call Option and a Put Option in Crypto Trading?](https://learn.greeks.live/path/what-is-the-fundamental-difference-between-a-call-option-and-a-put-option-in-crypto-trading/)

- [What Is a “Call Option” and a “Put Option,” and How Are They Used in Cryptocurrency Hedging Strategies?](https://learn.greeks.live/path/what-is-a-call-option-and-a-put-option-and-how-are-they-used-in-cryptocurrency-hedging-strategies/)

## Glossar

### [Underlying Asset](https://learn.greeks.live/area/underlying-asset/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/put-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/call-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Upside ⎊ Acquiring a Call Option provides leveraged upside participation in the appreciation of a specific cryptocurrency asset.

## Discover More

### [What Is the Synthetic Position Created by Combining a Long Call and a Short Put?](https://learn.greeks.live/path/what-is-the-synthetic-position-created-by-combining-a-long-call-and-a-short-put/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Synthetic Position Created by Combining a Long Call and a Short Put?](https://learn.greeks.live/wp-content/uploads/2025/10/Cryptographic-Hedging-Mechanism-Interlocking-Futures-Contracts-Geometric-Convergence-Visualization.webp)

A synthetic long position in the underlying asset (synthetic long stock).

### [Explain the Concept of "Put-Call Parity" in Options Pricing](https://learn.greeks.live/path/explain-the-concept-of-put-call-parity-in-options-pricing-2/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Explain the Concept of "Put-Call Parity" in Options Pricing](https://learn.greeks.live/wp-content/uploads/2025/10/Articulated-Dynamic-Actuator-Assembly-Modeling-Volatility-Surface-Convexity-in-Decentralized-Finance-Instruments.webp)

Defines the price relationship between a European call, a European put, and the underlying asset.

### [Explain the Concept of Put-Call Parity](https://learn.greeks.live/path/explain-the-concept-of-put-call-parity/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Explain the Concept of Put-Call Parity](https://learn.greeks.live/wp-content/uploads/2025/10/Deconstructed-Digital-Asset-Volatility-Surface-Intersected-by-Impending-Market-Skew-Hedging-Instruments.webp)

It is a no-arbitrage principle linking the prices of a European Call, a European Put, the underlying asset, and the strike price.

### [Define "Put-Call Parity" and Its Role in Options Pricing Theory](https://learn.greeks.live/path/define-put-call-parity-and-its-role-in-options-pricing-theory/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Define "Put-Call Parity" and Its Role in Options Pricing Theory](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-Analysis-of-Tokenized-Asset-Structure-Fluctuation-Indicating-Liquidity-Pool-Instability.webp)

Put-call parity links the prices of a European call, a European put, the underlying asset, and a bond to ensure arbitrage-free pricing.

### [Explain the 'Put-Call Parity' Theorem](https://learn.greeks.live/path/explain-the-put-call-parity-theorem/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Explain the 'Put-Call Parity' Theorem](https://learn.greeks.live/wp-content/uploads/2025/10/Microcosmic-Analysis-Of-Encapsulated-Digital-Asset-Futures-Settlement-Mechanism-Dynamics.webp)

A theorem linking the prices of European Calls and Puts (same strike/expiry) on the same asset to prevent arbitrage opportunities.

### [Does the Limited Loss Apply to Both Call and Put Option Buyers?](https://learn.greeks.live/path/does-the-limited-loss-apply-to-both-call-and-put-option-buyers/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does the Limited Loss Apply to Both Call and Put Option Buyers?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-View-of-Digital-Asset-Collateralization-Structure-and-Liquidity-Bubble-Dynamics.webp)

Yes, the maximum loss for both call and put option buyers is strictly limited to the premium paid for the contract.

### [What Is the Risk of Early Assignment on the Purchased Put Option?](https://learn.greeks.live/path/what-is-the-risk-of-early-assignment-on-the-purchased-put-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Risk of Early Assignment on the Purchased Put Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Entanglement-Probe-Vector-Penetrating-Composite-Structure-Signaling-Decentralized-Exchange-Futures.webp)

There is virtually no risk of early assignment for the buyer of a put option; the risk lies with the seller.

### [How Do Call and Put Options Differ in Their Payoff Structure?](https://learn.greeks.live/path/how-do-call-and-put-options-differ-in-their-payoff-structure/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Call and Put Options Differ in Their Payoff Structure?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetrical-Exposure-Quantification-in-Decentralized-Finance-Derivative-Pricing-Mechanism.webp)

Calls grant the right to buy; Puts grant the right to sell, both at a predetermined strike price.

### [How Does a Deep ITM Put Option's Delta Behave as the Underlying Price Increases?](https://learn.greeks.live/path/how-does-a-deep-itm-put-options-delta-behave-as-the-underlying-price-increases/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Deep ITM Put Option's Delta Behave as the Underlying Price Increases?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-Decentralized-Finance-Option-Structure-Unfolding-Towards-Liquidity-Pool-Access.webp)

As the underlying price increases, the deep ITM Put's Delta moves from near -1.0 toward 0.0, decreasing in absolute value.

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