Beginner Track

Buying Options vs. Selling Options

Buying options and selling options have different profit and risk potential based on the rights and obligations of the two parties involved.
Buying Options vs. Selling Options
Kirk Du Plessis
Apr 19, 2021

The difference between buying options and selling options comes down to simply understanding your rights and obligations that you transfer to the other party in the contract with Calls and Puts.

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Option Profit & Loss Diagrams
Option profit and loss diagrams are visual aids that illustrate where options strategies will make or lose money at expiration based on the underlying asset’s price. Profit and loss diagrams diagrams help to explain all potential outcomes of a strategy including break-even points, maximum loss, and maximum gain.

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