Comments on: The Four Most Basic Types of Options http://www.getmoneyenergy.com/2010/02/options-trading-difference-between-calls-puts/ Canadian Dividend Stocks and DRIP Investing for Dividend Growth and Cashflow Sat, 06 Aug 2011 12:18:12 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: MoneyEnergy http://www.getmoneyenergy.com/2010/02/options-trading-difference-between-calls-puts/comment-page-1/#comment-3484 MoneyEnergy Fri, 12 Mar 2010 05:32:39 +0000 http://www.getmoneyenergy.com/?p=5192#comment-3484 @studenomics - I think you're right about selling calls being more complicated than buying them. For both calls and puts it's easier to understand buying them than it is to understand selling them. I've looked a bit into writing covered calls, though - it seems to be one of the less risky strategies. @studenomics – I think you’re right about selling calls being more complicated than buying them. For both calls and puts it’s easier to understand buying them than it is to understand selling them. I’ve looked a bit into writing covered calls, though – it seems to be one of the less risky strategies.

]]> By: MD @ Studenomics http://www.getmoneyenergy.com/2010/02/options-trading-difference-between-calls-puts/comment-page-1/#comment-3483 MD @ Studenomics Fri, 12 Mar 2010 05:10:58 +0000 http://www.getmoneyenergy.com/?p=5192#comment-3483 I feel that the benefit of buying a call option is that you're not obligated to purchase the share. So if the share price drops below the original price and the premium, you could walk away from the arrangement. Of course you incur the loss of your premium. Selling a call option is definitely much riskier. You risk the potential of losing lots of money if the stock price were to rise. Of course you do gain the premium at T=1. Are you going to get into some of the proactive measures that are taken with calls/puts? I feel that the benefit of buying a call option is that you’re not obligated to purchase the share. So if the share price drops below the original price and the premium, you could walk away from the arrangement. Of course you incur the loss of your premium.

Selling a call option is definitely much riskier. You risk the potential of losing lots of money if the stock price were to rise. Of course you do gain the premium at T=1.

Are you going to get into some of the proactive measures that are taken with calls/puts?

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