Buying And Selling Calls And Puts May 2026

: The "deadline" for the contract. Unlike stocks, options do not last forever; they expire on a specific date. 2. Buying Options (Going "Long")

: Realized if the stock price moves above the strike price plus the premium paid. Long Put (Bearish) Goal : You expect the stock price to fall . Right : You can sell the stock at the strike price. Risk : Limited to the premium paid. buying and selling calls and puts

: One standard equity option contract typically controls 100 shares of the underlying stock. : The "deadline" for the contract