As an example, let's say that you're bullish on Apple (AAPL 0.11%) and it's trading at $150 per share.You buy a call option with a strike price of $170 and an expiration date six months from now ...

Put option: A put option gives its buyer the right, but not the obligation, to sell a stock at the strike price prior to the expiration date. When you buy a call or put option, you pay a premium ...

Explain Like I'm Five. FAQs. The Bottom Line. Put: What It Is and How It Works in Investing, With Examples. By. ... A call option holder believes the price of the underlying option will rise.

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