This is an option related question.?

Question

If i sell a call option, does it has any different from me buying a put option?

Answer 1

Selling a call option is very different than buying a put option. About the only way they are similar is that both tend to be profitable if the stock price goes up enough and lose money if the stock price falls enough.

Ways they are different include:

Selling a call option gives someone else the option of forcing you to make a trade. Buying a call option gives you the right to force someone else to make a trade.

The maximum profit you can make by selling a call option is limited, but the maximum loss you can experience in unlimited. If you buy a put option your maximum loss is limited but your maximum profit is very large.

The passage of time causes the seller of a call option to make money but the buyer of a put option to lose money, all else being equal.

An increase in implied volatility causes the seller of a call option to lose money but the buyer of a put option to make money, all else being equal.

A decrease in implied volatility causes the seller of a call option to make money but the buyer of a put option to lose money, all else being equal.

Answer 2

The main difference is the Risk and this is definitely a GREAT difference that can break you and make you sell your underwear
:)

In buying a put option, when the stock goes down you make the money, but when the stock goes up you just lost the amount of premium you paid for that put options.

In Selling a Call Options, this is called naked call options. When the stock goes down in value, you still make money but to the maximum of what you get from selling the options.

The Risk here is that when the Stock goes up in value or Gap up, then you are exposed to Unlimited Risk.

Here is a breakdown, you decide which one you want to take.

Buying Put Options. Risk Limited to amount paid. Profit limited to the amount the Stock lost its value to Zero.

Selling a Call Options. Risk Unlimited, you can wipe out your entire account. Profit limited to the amount you received for selling the options.

Trading is about evaluating risk and gain. So do take care and learn on how to trade safely

Answer 3

TOTALLY DIFFERENT. Zman has the answer. im too lazy to type it out

Answer 4

same difference

Answer 5

I think they are pretty much the same, except that when you sell a call you are obligated to sell the shares where as buying the put you are only out the premiums if the shares are not "in the money"

Took a derivatives class in undergrad and I think that is how I remember it

Answer 6

It remains yours, the comparable for shares, in case you do not desire to sell, you may shop them, be it balloting or non-balloting shares. How might they take shares out by potential of tension from human beings? they don't its unlawful. What somewhat occurs throughout takeovers its that they purchase the shares the business enterprise and the administrators carry.