For Dummies - Buying Options

: You buy these when you think a stock price will rise .

: You buy these when you think a stock price will fall . buying options for dummies

If the market price goes above your strike price, you can buy the stock at a "discount" or sell the contract for a profit. : You buy these when you think a stock price will rise

If the market price drops below your strike price, the value of your put increases because you can sell the stock at a price higher than the current market rate. Essential Lingo Options Trading for Beginners (The ULTIMATE In-Depth Guide) buying options for dummies

They give you the right to 100 shares at the strike price.

They give you the right to 100 shares at the strike price.