3/28/25

Options Basics - Calls and Puts

Calls are the option (right but not the obligation) to buy stock at a particular price (strike price) on or before a particular day (expiration)

Puts are the option (right but not the obligation) to sell stock at a particular price (strike price) on or before a particular day (expiration)

Buying options limits your risk to the premium of the option plus any commission fee from your broker.

Thinkorswim commissions are ~$1.30/contract (round trip)

65 cents to get in and 65 cents to get out.

Previous

Week 2 - Vertical Spreads and Options Premium

Next

Customizing Your TOS with Active Trader and Trade Flash