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Stock Options EXPERT Teaches Graham Stephan How to Invest | Ft. @Savannah Smiles
The Iced Coffee Hour
Buying Puts Is the Exact Opposite of Selling Calls
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The exact opposite would be selling and buying puts. You're paying to have a reserved price to be able to buy it at. If the stock, if the stock skyrockets and goes to $40 when you reserved a spot at $35, even if you paid a little bit of premium, you're stoked because you can make the difference between $35 and $40,. Of course, offset by your premium you paid initially, right? That would be buying a call. Buying a put is the exact opposite. So essentially you're reserving the right to sell someone a stock at that strike price in the future.
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