Buying a put and selling a call: What is the difference?

Asked 4 years ago

I've noticed that there is a trading strategy that is called a 'straddle,' and it's got to with buying a put option and selling a call. What is the difference between 'put' and 'call,' and how does it work?

Put options Selling calls Buying call options

Osasere Okunloye

Friday, October 08, 2021

The difference is that the call option gives the buyer the right to buy a particular security at a stated price or at a specified time, while the put option gives the seller the right to sell a particular security at a particular price or within a specified time. 